However, with the right tools, you can be sure to maximize your

business

‘s savings this filing season. Using an ERTC Calculator is one of the best ways to do just that. It’s easy to use and allows you to make calculations with minimal data entry for complete accuracy. Using the right ERTC calculator can save you money and time when filing your taxes this year.

How Does the ERC Work?

The Employee Retention Credit (ERC) was created by the CARES Act to encourage employers to keep their employees on during the pandemic. It offers small businesses a credit of up to $26,000 for every qualified employee retained through 2020 and 2021. Among other things, the ERC helps to offset costs related to food, supplies, utilities and payroll. To qualify for the credit, a business must show that it experienced a significant decline in gross receipts during a quarter in 2020 or 2021 as compared to the same quarter in the previous year.

This includes a decline in both regular and seasonal business revenue. Regardless of how long the business was closed during the pandemic, it must have experienced a decline in revenue for at least two consecutive quarters. In addition, the business must be a small business under the definition set by the IRS. Lastly, the business must have paid wages for its eligible employees and must have paid or reimbursed medical expenses for those same employees.

The ERC must be claimed on Form 941, which is submitted with the business’s income tax return. This means that the amount of credits and deductions claimed on this form will influence a business’s overall tax liability for the year.

In order to claim the ERC, the business must provide documentation that meets certain requirements, including the date of the loss and the amount ERTC Credit Calculator of the reduction in gross receipts. Additionally, the ERC cannot be claimed on the same earnings that are reported as payroll costs for Paycheck Protection Program loan forgiveness or as part of the shuttered venue operators grants.

For a complete and comprehensive analysis of your eligibility for the ERC, you can contact ERC Today. They can help you evaluate your eligibility, provide guidance on the claiming process and documentation, and offer specific program expertise that a standard CPA or payroll processor may not be familiar with. They also have a fast and smooth end-to-end service that takes the stress out of the ERTC application process