The Employee Retention Credit (ERC) is a tax relief measure that provides a refundable tax credit to eligible employers. The credit is aimed at businesses who keep employees on their payroll during times when operations are affected by certain qualified events during the COVID-19 pandemic. It is calculated based on a percentage of the qualified wages and health insurance costs paid to employees during periods of more than nominal business disruption from a government shutdown order or decline in gross receipts as specified by the program’s guidelines.