Kaydee Ruppert, the Accounting & Financial Outsourcing Manager at Dean Dorton, put together this quick and easy guide to help you navigate the nuances of the ERC and maximize your opportunity to receive it!
Using an ERTC
calculatoris an excellent way to get an idea of your potential savings before filing your taxes. However, itâs important to understand how an ERTC calculator works before you start using one. This blog post will walk you through all the steps necessary to make sure your ERTC calculator is working correctly.
What is an ERTC Calculator?
An ERTC (Employee Retention Tax Credit) calculator is a tool that can be used to determine your companyâs eligibility for the COVID-19 Employee Retention Credit. The calculator helps businesses find out if they can claim the credit, how much it will be worth, and what documents are required in order to claim it. It will also provide other helpful information related to the ERC.
In order to use an ERTC calculator, you will need the following information:
Eligible Wages for the Employee Retention Tax Credit
The ERC is based on a number of different criteria, including the total number of full-time employees that your business had during the COVID-19 pandemic. It also considers the companyâs group health insurance costs that were appropriately deducted from the employeeâs paycheck.The calculation process for the ERTC can be very complicated, but the ERTC Calculator How does the ERC Work makes it easier for businesses to determine their eligibility.
To
calculateyour ERTC, you will need to know the total number of qualified wages for each quarter of 2021. Qualified wages are the total amount of pay that your employees received in each quarter of 2021. This includes salary, wages from bonus payments and overtime, as well as the cost of any employee-sponsored health insurance coverage.
It is also important to note that tips are considered part of the qualified wage amount. In addition, the IRS has issued Notice 2021-49 clarifying that if an owner or spouseâs wages are subject to FICA, then they should be included in the qualified wage amount for purposes of the ERTC. However, if an owner or spouseâs wages do not have to be reported on the Form 941 (Employee Withholding Tax Return), then they cannot be included in the ERTC.
Be aware that there are national companies advertising on Google that will prepare your ERTC application for you, but they charge 20-30% commission! Itâs not worth the risk of them getting your ERC refund money wrong. Use this free ERTC Calculator and save your company the hassle of paying a third party to do it for you. The calculator is super easy to operate and will spit out EXACTLY what you need to place on your quarterly 941X. This tool has already been used to prepare thousands of ERC applications and is more accurate than the national companies that you see advertised