Dean Dorton Accounting & Financial Outsourcing Manager Kaydee Ruppert has put together this helpful guide to help you understand how it works and maximize the opportunity that it presents.
What is an ERC Calculator?
An ERTC calculator is an online tool that allows you to calculate the amount of a rebate your business may be eligible for. It is a great tool to use, especially if you are uncertain of how much you could receive. This tool will also save you time and effort since it does all the work for you.
Using an ERTC Calculator will also help you make sure that you are filing correctly.If you file ERC Calculator incorrectly, you could face costly fines and penalties from the IRS. Using an ERTC Calculator will ensure that you are getting the maximum refund possible from this new program.
How Does the ERC Work?
The ERC is a new federal tax credit that was created to help businesses cope with the effects of the coronavirus pandemic. The credit can be used to offset employment taxes owed by an employer. The credit is worth up to 70% of the wages paid to employees during a qualified time period.
To qualify for the ERC, an employer must have experienced a significant
decline in gross receipts during one or more quarters of the 2020 or 2021 calendar year. This must have been a result of the pandemic or governmental orders that prevented businesses from operating normally.
In addition, the credit can be used to cover health insurance costs incurred by employers to keep their employees employed during the pandemic. The IRS states that a qualified time period can be defined as any period of time during which business operations were interrupted due to the pandemic or government orders and does not have to be continuous.
Qualified wages include salaries and wages paid to an employee for services performed. The IRS notes that tips are considered wages for ERTC purposes, but only if they are subject to FICA taxes. This means that tips that are less than $20 per month do not count. In addition, a business owner or spouse’s wages are not eligible for the ERTC.
Using an ERTC calculator is the best way to determine how much you can expect to get from this new program. The calculator will give you an estimate of the value of your ERTC, so that you can plan accordingly. It is recommended that you use a trusted online service to avoid any errors or confusion in your calculation.
ERTC Today is an online service that makes it easy to navigate the new ERC process. The service offers a complete analysis of an employer’s eligibility, provides guidance on the claiming process and documentation, and gives specific program expertise that a regular CPA or payroll processor might not be well-versed in. In addition, the service executes a fast end-to-end process from eligibility to claiming and receiving refunds