Use this ERC tax credit calculator to quickly determine your estimated Employee Retention Credit based on your business’s eligible wages and health plan expenses.
ERC Tax Credit Calculator
This calculator helps estimate the Employee Retention Credit (ERC) you may be eligible for. Follow the steps below to calculate your potential tax credit:
- Enter the average wages you pay to your employees.
- Enter the number of qualified employees you have.
- Click on the “Calculate” button to see your estimated tax credit result.
The ERC tax credit calculation is based on 50% of up to $10,000 in qualified wages paid per employee, including health plan expenses. Therefore, the maximum credit available per employee is $5,000.
How to Use the Calculator
To use this calculator:
- Input your average wages per employee in dollars in the first field.
- Input the total number of qualified employees in the second field.
- Click the “Calculate” button to view your potential tax credit.
Understanding the Results
The result provided is an estimate of the ERC based on the average wages and number of employees you entered. It assumes all employees are eligible and the maximum credit is claimed for each.
Limitations of the Calculator
This calculator provides a simplified estimation. Your actual tax credit may vary based on several factors not accounted for in this calculator, such as:
- Part-time vs. full-time status of employees.
- Specific limits and rules related to your business.
- Wages exceeding the $10,000 limit per employee.
- Other credits and relief measures you’re participating in.
For precise calculations and to ensure you maximize your credit, consult with a tax professional familiar with your business’s specific circumstances.