This simple tool is designed to be as accurate as possible, making it easy for businesses to get the most out of their ERTC rebates. It is also the only ERTC calculator that includes an ERC recap section for Form 941. This is an important feature that will save business owners a lot of time and effort.
How Does the ERC Work, ERTC Calculator?
Essentially, the ERC program provides businesses with a financial setback to help them recover from the effects of the COVID-19 pandemic. The program is based on gross receipts, so a business that lost revenue due to the pandemic must show a significant decline in their gross receipts to qualify for the credit. This can be shown by comparing their gross receipts for the quarter in question to the same quarter in 2019.
There are several ways that a business can qualify for a ERTC rebate, but it is important that you know all of your options before applying. The ERTC Calculator will walk you through precisely how to determine if your business qualifies for the program. The process begins by figuring out how many employees your company has. This must be done for each quarter of the calendar year from 2019 to 2021. A business that stayed open the entire year would add up their total number of full-time employees in each quarter and divide it by 12.
Next, you ERTC Tax Credit Team must figure out how much money your business made for each quarter in 2021. This is done by adding up the total amount of wages paid to each employee, dividing it by the number of employees in each quarter. A full-time employee is defined as someone that works at least 30 hours each week or 130 hours each month. You must also take into account any health care expenses that were incurred for each full-time employee.
The final step is to compare your businessâs gross receipts from the quarter in question to the same quarter of 2019. This can be done using a variety of methods, including the ERTC calculator or by submitting documentation from an accountant that shows a significant decline in revenues. You may also want to include any additional proof that your business was impacted by the COVID-19 pandemic, such as proof that pricing increased, supply decreased, orders were back-ordered or cancelled, or that your company was partially or fully shut down during the applicable fiscal quarters of 2020 and/or 2021.
The ERTC Calculator will help you navigate the complex laws that govern this new rebate program and get your business the money it deserves. However, if you do not have time to complete your own ERC calculation or are not sure whether you are eligible for the credit, it is best to consult with an experienced CPA who can ensure you are making all of the necessary deductions and filings