The ERTC Credit Tax Calculator Is A Tool That Helps Businesses Calculate Their Potential Rebate
It takes several different factors into account to help you figure out how much money your business could save. This article will walk you through the steps of how to use the ERTC Calculator and how to make sure your business is getting all of the money it could be getting.
ERTC Credit Tax Calculator
The Employee
Retention Credit, or ERC, is an incentive created by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to help employers keep their employees on the payroll during the COVID-19 pandemic. The ERC is a refundable payroll tax credit equal to a percentage of qualified wages. This credit was designed to help businesses with the high costs of keeping employees on the payroll during the COVID-19 epidemic, and it is meant to offset a portion of the taxes that were paid by the business during the pandemic.
This tax credit is available
to small businesses that have fewer than 500 full-time equivalent employees, and it is intended to provide relief for the high costs of maintaining staff during the pandemic. The amount of the credit is based on a percentage of the eligible wages and health plan expenses. This calculation is based on the number of qualified FTE employees and the total amount of qualified wages paid for that quarter. The credit is capped at $10,000 in a quarter.
To qualify for the ERC, a business must show that it has experienced a significant drop in gross receipts during the quarter, and that decline must be 50% or more of the same quarter in 2020. The IRS has published specific criteria to determine whether a business meets these requirements. In order to qualify, a business must also show that it has kept employees on the payroll during the quarter.
If a business qualifies, it must report its claim on Form 941 for the quarter in which the credit is received. The credit is reported on the same line as employment taxes, and it is applied as a reduction of the payroll tax deposits that would have been made for the quarter. Alternatively, a business that received the credit during 2021 may opt to apply it against the payroll tax deposit due for the first three quarters of 2022.
As the ERTC program continues to evolve, it is important for businesses to know that they can continue to utilize the Dean Dorton ERTC calculator. The team is always on hand to answer questions, provide consultation, or collaborate with organizations as they continue their recovery journey.Our specialized team of CPAs is committed to helping you get your maximum allowable rebate, with a minimal time commitment and Online ERTC Tax Credit (ERC) Calculator audit-proof documentation for IRS support. To learn more about how Dean Dortonâs ERTC program can benefit your business, contact us today. The sooner you start the process, the more money your business can receive