UK
IRE
AU
CA
US
ZA
NAEmployee retention credit calculator
The Employee Retention Credit (ERC) is a valuable tax credit designed to encourage businesses to retain employees during challenging times, like the COVID-19 pandemic.
Read this article to me
The Employee Retention Credit (ERC) is a valuable tax credit designed to encourage businesses to retain employees during challenging times, like the COVID-19 pandemic.
Step 1: check your eligibility
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
To calculate the Employee Retention Credit (ERC), you’ll need to consider several factors. Here’s a basic outline of the steps involved:
Identify Eligibility: Confirm if your business qualifies for the ERC. Factors include experiencing a significant decline in gross receipts or facing a full or partial suspension of operations due to government orders related to COVID-19.
Determine Qualified Wages: The ERC is based on qualified wages paid to employees. For eligible employers with 500 or fewer full-time employees in 2019, qualified wages can include the cost of providing health care benefits.
Calculate Credit Percentage: The credit percentage varies depending on the time period. In 2021, it was generally 70% of qualified wages per employee per quarter, up to $10,000 per quarter. In 2022, it changed to 70% of qualified wages per employee per quarter, up to $12,000 per quarter.
Identify Time Period: Determine the time period for which you’re claiming the credit. The ERC was available for different quarters in 2020, 2021, and 2022. Each period might have different rules and credit amounts.
Claim the Credit: Use Form 941 (Employer’s Quarterly Federal Tax Return) to claim the ERC. You can report the credit on this form to reduce your federal employment tax deposits.
Consult a Tax Professional: ERC calculations can be intricate due to evolving regulations and provisions. It’s advisable to seek guidance from a tax professional or use specialized software to ensure accurate calculations and compliance with IRS guidelines.
Remember, the ERC rules can be complex, especially considering updates and changes made due to legislative actions or new regulations. Always consult with a tax professional or refer to official IRS guidance for accurate calculations and eligibility requirements specific to your situation.
Disclaimer: Swoop Funding LLC (“Swoop”) is a financial technology platform and commercial finance broker, not a lender. Swoop does not provide loans or make credit decisions. We match US-based firms with third-party lenders, equity funds, and grant agencies. All financing is subject to lender credit approval and the specific terms and conditions of the funding provider.
Broker Compensation Disclosure: Swoop provides its platform and matching services to applicants at no direct cost. We receive compensation in the form of a commission or referral fee from the finance providers in our network upon successful placement. This compensation may vary by provider and product. In certain instances, the commission paid to Swoop may influence the interest rate or terms offered by the lender, which can affect the total amount payable under your agreement.
Credit Authorization & FCRA Notice: By submitting an application or registering an account, you provide “written instructions” to Swoop under the Fair Credit Reporting Act (FCRA) to obtain your personal and/or business credit profile from consumer reporting agencies. This information is used solely to evaluate your eligibility for financing and to match you with appropriate lenders in our network.
State-Specific Disclosures:
Florida & Utah: Swoop complies with state commercial financing disclosure laws regarding the transparency of terms for non-real estate secured commercial transactions.
Entity Information: Swoop Funding LLC is a Delaware limited liability company. US Headquarters: 43 W 23rd St, New York, NY 10010, United States. Contact: hello@swoopfunding.com
General Terms: Applicants must be 18 years of age or older. All firms must be registered and operating within the United States. SBA loans are issued by private lenders and guaranteed by the U.S. Small Business Administration; Swoop is not a government agency. Please review our Terms of Use and Privacy Policy for full details.
If you have a complaint, please refer to our Complaints Policy.
yet? Register here!