The National Federation of Independent Business is advocating for federal legislation that would allow small businesses to claim the Employee Retention Tax Credit for the fourth quarter of 2021. The tax credit, created through the CARES Act of 2020, was designed to aid small businesses during the COVID-19 pandemic. It promotes employee retention by offering employers a quarterly credit of $7,000 for each qualified employee. The ERTC was originally set to expire on Jan. 1, 2022, but a provision in the Infrastructure Investment and Jobs Act that was signed into law on Nov. 15 changed the credit’s timeframe to apply to only the first three quarters of 2021. According to NFIB’s January COVID-19 impact survey, 13% of small employers claimed the ERTC for wages in 2020 and another 12% claimed the ERTC for wages in 2021. More information about the Employee Retention Tax Credit Reinstatement Act can be found on the NFIB website.