Business taxpayers who wish to apply for the Employee Retention Credit (ERTC) with their quarterly returns will need additional payroll data and other documents. The IRS coronavirus page provides updates on the employee retention credit, answers to frequently asked questions about tax credits for required paid leave, and other relevant information. If you have any doubts about how to calculate your employee retention credit, it is best to consult a qualified tax professional. ERCToday is a employee retention credit service that helps companies assess their eligibility, analyze their applications in detail, provide guidance on the application process and documentation, offer specific experience in programs that a regular CPA or payroll processor might not be familiar with, and execute a quick and simple process from start to finish, from eligibility to applying and receiving refunds.
The rules on the employee retention tax credit can be confusing if you haven't studied them thoroughly. To calculate the employee retention credit, first determine the number of eligible employees and the total amount of qualified wages paid to those employees during the corresponding quarter. The government understands that in order to keep employees close, businesses still need to be able to pay them. ERCAssistant is an employee retention credit service that offers a simplified process for onboarding customers and filing claims in as little as one to two weeks.
In addition to the employee retention credit services offered by the company, Aprio works with other credits to increase the company's liquidity. The employee retention credit is equivalent to 50 percent of the qualifying wages (including qualifying health plan expenses) that an eligible employer pays in a calendar quarter. For more information and examples, see Determining the maximum amount of an eligible employer's employee retention credit. Once you've determined the total amount of eligible wages paid, multiply that number by 50% to calculate the employee retention credit. The employee retention tax credit can take 6 to 10 months from the filing date to be received.
This credit is a fully refundable tax credit for employers that is equivalent to 50 percent of qualified wages (including allocable qualified health plan expenses) that eligible employers pay their employees. The credit is fully refundable because if the amount of the credit exceeds certain federal employment taxes owed by the eligible employer, they can receive a refund.