The CARES Act added the employee retention credit, a refundable payroll tax credit equal to 50% of qualified wages (wages, including qualified health plan expenses allocable to the wages) paid by eligible employers to certain employees from March 13, 2020, to Dec. 31, 2020. Qualified wages are limited with respect to any employee to $10,000 for all calendar quarters. While employers claim the employee retention credit against payroll taxes, meaning that, for income tax purposes, an employer’s deduction for wages paid in the tax year is reduced by the amount of the credit claimed, with all employees of a controlled group of corporations or other entities under common control treated as employed by a single employer. By the same token, employers cannot claim as qualified wages for purposes of the employee retention credit any wages for which they receive a credit for qualified sick or family leave credit for paid family and medical leave. Employers also may not claim the employee retention credit and the work opportunity credit for the same employee for the same period of time.