The credit allows companies to offset the federal payroll taxes (federal wage withholding and the employeesâ share of Social Security and Medicare taxes) paid on wages that qualify for the ERTC. It is designed to incentivize businesses of all sizes to keep their employees and continue operations while allowing them to pay their normal operating expenses.
Using an ERTC Calculator is the best way to determine if your business may be eligible for the program. This will allow you to calculate the potential financial relief that your company may receive, as well as how to proceed with filing for the credit. There are many different ERTC calculators available online, so you can find the one that is right for your business. Generally, the ERTC calculator will ask you to enter in your companyâs information and then will perform the calculation for you.This is the fastest and ERTC Tax Credit Team easiest way to determine if your company is eligible for the credit.
To begin the ERTC calculation process, you will need to determine whether your company qualifies for the credit. Basically, you will need to look at your gross receipts in one quarter of 2020 and compare them to the same quarter in 2019. If there was a significant decline, then you could qualify for the ERTC.
If you are unsure whether or not your company qualifies, we recommend reaching out to a tax credit expert for more assistance. There are a number of factors that go into determining whether or not your company can claim the credit, including how much of a revenue decline you had and the duration of the decline. It is also important to note that the credit only applies to a portion of your total wages, and not all of them.
Once youâve determined that your company does qualify for the ERTC, the next step is to calculate how much you will receive from the IRS. This will depend on your gross revenue in the affected quarters and the amount of qualified wages that you have. The ERTC calculator is helpful in this regard as it will tell you how much of the credit you are entitled to based on your gross revenue and the qualifying wages that you have.
Finally, you will need to file for the ERTC credit with the IRS. This can be complicated, especially when you are trying to file retroactively. A tax credit expert can help you navigate the process and ensure that you are filing in accordance with the correct deadlines and regulations.
The team at ERC Today has helped companies of all sizes file for the ERTC credit. We offer comprehensive services, including effortless data
gathering
(including a portal for uploading your 941 returns, PPP loan documents, and raw payroll data), credit calculation to determine the value that you are eligible to receive from the IRS, and assistance with amending your returns. We are 100% IRS compliant and have a high success rate. Contact us today to get started