ERTC is calculated as follows:
For Tax Year 2021: Receive a credit of up to 70% of each employee’s qualified wages. This means an employer could claim up to $7,000 per quarter per employee, or $28,000 for 2021 (Please note: Q4-2021 would be eligible for Recovery start up business otherwise it would be $21,000).
Consider group health plan expenses as qualified wages, even if no other wages are paid to an employee.
For Tax Year 2020: Receive a credit of up to 50% of each employee’s qualified wages, up to $5,000 for the year.
Consider group health plan expenses as qualified wages, even if no other wages are paid to an employee.