How to Calculate the Employee Retention Credit

UPDATED :

June 26, 2023

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If your business closed down or lost revenue due to COVID-19, then you may be eligible for the Employee Retention Credit. The American Rescue Plan Act of 2021 authorizes refunds of up to $33,000 per employee but can feel like a complicated process to get there. 

The amount you get back varies on quite a few factors however, the credit you receive can offset your entire employment tax liability.  If you have a surplus, the government will even issue you a check. 

The basics: The credit is equal to 50% of the qualified wages you paid to employees from March 12, 2020, to December 31, 2020, and 70% of qualified wages for your 2021 payroll.

But in reality, the ERC program is a complex calculation and new to a lot of tax professionals. Because many tax accountants are focused primarily on income taxes, they haven’t had the bandwidth or resources to understand the calculations and complexities of the ERC. 

That’s where Rebate comes in.  We specialize in government incentives, like ERC and the Research & Development (R&D) Tax Credit,  working directly with tax and industry experts to get the most out of your refund. It takes just a few questions to see if you qualify and we take it from there.