The ERC is a fully-refundable payroll tax credit, and it has the potential to make a substantial difference in a nonprofitâs bottom line. It is important that all nonprofits understand how this credit works so they can maximize the opportunity it provides. Dean Dorton Accounting & Financial Outsourcing Manager Kaydee Ruppert has put together this article to help explain how the credit works.
How Does the ERC Work?
Several factors determine whether or not you can qualify for the ERC. First, your business must have experienced a significant decrease in gross receipts due to the COVID-19 pandemic. Your revenue must have declined by at least 10% over the course of the qualifying period. The IRS has specific definitions of what qualifies as a decline in gross receipts, and the ERTC calculator takes these definitions into account when calculating your potential ERC refund.
Another important factor to consider is the date your business experienced the decline in gross receipts. The ERC was made available as a result of the Coronavirus Aid Relief and Economic Security Act of 2021, and it is important to understand when your business fell into a qualified category. The dates on which your business experienced the significant reduction in gross receipts will dictate when you can claim your ERC refund, and it is important that you keep good records of this information.
Finally, you cannot use wages paid during a quarter for which you claimed the PPP loan when calculating your ERC. This is because you can only claim the ERC on the amount of qualifying wages that are not covered by the forgivable PPP loan.For this reason, it is important that you carefully How does the ERTC Work track all the wages you pay to your employees so that you can accurately calculate your ERC refund.
Online ERTC Calculator
The ERTC calculator is a free tool designed to help businesses and organizations estimate their possible Employee Retention Credit refund. This online calculator works by analyzing data based on the businessâs quarterly filings and revenue numbers to determine its eligibility for the credit. The tool then estimates the potential ERTC refund based on government restrictions and other factors. The ERTC calculator also helps businesses determine how much they can expect their return to be, allowing them to make an informed decision regarding whether or not the program is right for them.
The ERTC calculator is easy to use and allows businesses to determine their eligibility without having to submit any personal information. Simply answer a few simple questions and the online tool will give you an immediate determination of whether or not your business qualifies for a refund and how large that refund could be. Thousands of businesses across the US have used this tool to help them navigate the complicated ERTC process and receive their full refund. Dean Dorton has partnered with a team of ERTC specialist CPAs to provide this valuable tool to businesses