June 16th, 2023

Estimating your ERC return for tax purposes can be tricky, but it's essential to understand the process to make sure you receive the appropriate amount. Calculating your ERC return involves several factors and considerations. Here's a step-by-step guide to help you estimate how much your ERC return could be:

Determine Eligible Wages:

Start by identifying the wages that qualify for the ERC, including wages paid to eligible employees during the eligible period. The eligibility period can vary depending on your business's specific circumstances and the applicable legislation.

Calculate the Credit Percentage:

The credit percentage for the ERC is generally 70% of eligible wages paid during the eligible period. However, specific regulations and legislation may affect this percentage. Stay up-to-date with the latest guidance from the IRS and consult with tax professionals, like Resolute Tax Credits, to ensure accuracy.

Consider Maximum Credit Limits:

There are limits on the maximum amount of ERC that can be claimed per employee. The credit is limited to a specific amount per quarter for each eligible employee. Familiarize yourself with these limits to estimate your potential ERC return accurately.

Factor in Additional Eligible Expenses:

In addition to eligible wages, certain qualified healthcare expenses can also be included in the calculation of your ERC return. These expenses may include group health plan costs, such as employer-sponsored medical, dental, or vision coverage.

Seek Professional Assistance:

Estimating your ERC return accurately requires a thorough understanding of the complex calculations and regulations involved. With its expertise and the same tools used by the Big 4 firms, Resolute Tax Credits can provide personalized guidance to help you navigate the estimation process, ensuring you maximize your return while remaining compliant.

Estimating your Employee Retention Credit (ERC) return is an essential step towards maximizing the benefits available to your small business. Resolute Tax Credits brings credibility, expertise, and personalized attention to guide you through this process.

Next Article