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How to Compute Your Employee Retention Tax Credit for the First Two Quarters of 2021


[Updated: Jun 28, 2021 ] Jun 28, 2021 by Lea Uradu

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Gross Receipts 2021 2019 Percentage
Q1 $26,000 $144,000 18% of 2019 earnings
Q2 $50,000 $200,000 .25 of 2019 earnings
Employees Wages Q1 Wages Q2 Qualified Health Plan Expense Total of Q1 and Q2
Employee 1 $10,000 $10,000 $0 $20,000
Employee 2 $10,000 $10,000 $0 $20,000
$20,000 $20,000 $0 $40,000
Employees Wages Earned Credit Calculation 70% of qualified wages Total Credit for Q1 and Q2
Employee 1 $20,000 $20,000 x .70 $14,000 ($7,000 per quarter)
Employee 2 $20,000 $20,000 x .70 $14,000 ($7,000 per quarter)

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