A company’s employee retention rate is a measure of how many employees remain with the company for at least 6 months. It is calculated by dividing the number of new employees who stay with the company for more than 6 months by the total number of new hires. Employee retention rates are important because they indicate how well a company recruits, trains and keeps its employees.

If it has a low rate, it may be indicating that it has trouble attracting good workers or retaining them. Retaining good workers can save companies money in recruitment and training costs, as well as improving customer service levels if they are dealing with customers on behalf of their employer. Employee retention rates are important because they indicate how well a company recruits, trains and keeps its employees. If it has a low rate, it may be indicating that there may be an issue with attracting good workers or retaining them which can actually save companies money in recruitment and training costs as well as improving customer service levels if they are dealing with customers on behalf of their employer.

Look after Wages and Look after Staff

The “Employee Retention Credit” is a new tax credit created under the Tax Cuts and Jobs Act of 2017. Those qualifying for this credit can receive up to $2,400 per year in tax savings, which will be calculated by subtracting 20% of wages paid to qualifying employees from their total taxable income. To qualify for this credit and receive the 20% deduction in taxes, an employer must employ full-time employees who earn less than $90,000 annually and also have a period of employment with the company that is greater than one year.

This new tax credit incentivizes employers to keep their workers happy by providing them with incentives such as increasing wage rates or offering additional hours so that they don’t have to be concerned about paying their salary for the rest of the year. The Employee Retention Credit is a newly created tax break under the Tax Cuts and Jobs Act of 2017. Those qualifying for this break can receive up to $2,400 in tax savings per year which would be calculated by subtracting 20% of wages paid to qualifying employees from their total taxable income if they’re earning less than 90k annually and also have a period of employment with your company that’s over 1 year long.