The Employee Retention Tax Credit (ERTC) is a valuable tax incentive program introduced by the U.S. government to support businesses during times of economic uncertainty, particularly in response to the COVID-19 pandemic. This credit is designed to encourage employers, including for-profit businesses and tax-exempt organizations, to retain their employees on the payroll, even if they are not actively working due to disruptions caused by the pandemic. Under the ERTC, eligible employers can claim a tax credit against their payroll taxes, helping to offset a portion of the wages paid to employees. It serves as a financial lifeline for businesses facing economic challenges, enabling them to continue operations while retaining their workforce. The ERTC has undergone several updates and extensions to accommodate changing economic conditions, making it an important tool in the arsenal of businesses seeking to maintain their workforce during times of crisis. Businesses should consult with tax professionals or government agencies to understand eligibility criteria and claim this tax credit effectively.