S corporations (are) a popular way for businesses to structure their operations, and the Employee Retention Credit is an incentive for employers to keep employees on payroll during difficult economic times. Not only does this credit help employers financially, but it also helps provide stability and security to workers. However, navigating the complexities of this credit can be confusing and challenging!

First off, let's look at which S corporations qualify. The company must have experienced either a full or partial suspension of operation due to governmental orders related to COVID-19, or have seen a significant decline in gross receipts compared with 2019. Additionally, any eligible employer must have fewer than 500 employees total.

Now that we know who qualifies for the credit, there are several criteria that must be met in order to claim it: wages paid between March 13th 2020 through December 31st 2021 are eligible; businesses may receive up to $7,000 per employee; and the credit is refundable against both Social Security taxes and Medicare taxes. Furthermore (the) employer will need to submit Form 941 quarterly, as well as file IRS Form 7200 as needed.
(!) It's important for employers to remember that if they take out loans under the Paycheck Protection Program (PPP), those wages don't qualify for this tax credit!

But wait - there's more! Employers can also receive additional credits when combined with the Work Opportunity Credit (WOTC). This program provides businesses with incentives when hiring members of certain disadvantaged groups such as veterans or individuals receiving food stamps. Moreover, not only do employers benefit from these additional credits but they're helping create job opportunities for those in need of employment.

All in all, understanding how S Corporation Employee Retention Credit works can seem daunting at first glance however upon closer inspection you'll find that it offers multiple benefits for both employers and potential employees alike!