1. What is the Employee Retention Credit?

The Employee Retention Credit (ERC) is a refundable tax credit for businesses, including mining companies, that kept employees on payroll during COVID-19. It's calculated as 70% of qualified wages up to $7,000 per employee per quarter.

2. How Does the Calculator Work?

The calculator uses the ERC formula:

Where:

• \( qualified\_wages \) — Wages paid to employees during eligible quarters
• \( 0.7 \) — 70% credit rate
• \( 7000 \) — Maximum credit per employee per quarter

Explanation: The credit equals 70% of qualified wages, capped at $7,000 per employee per quarter.

3. Importance of ERC for Mining Companies

Details: Mining companies impacted by COVID-19 can claim significant tax credits for wages paid during 2020-2021, helping recover costs from pandemic-related disruptions.

4. Using the Calculator

Tips: Enter qualified wages in USD per employee per quarter. The calculator will determine the credit amount up to the $7,000 maximum.

5. Frequently Asked Questions (FAQ)

Q1: What wages qualify for ERC?
A: Wages paid to employees during eligible quarters when operations were fully or partially suspended due to COVID-19 orders or experienced significant revenue decline.

Q2: Can mining companies claim ERC?
A: Yes, if they meet eligibility requirements - either government-ordered suspension or significant revenue decline.

Q3: What's the maximum credit per employee?
A: Up to $7,000 per employee per quarter in 2021 ($5,000 total for all of 2020).

Q4: How many quarters can be claimed?
A: Up to 3 quarters in 2021 (Q1-Q3) and all quarters in 2020 if eligible.

Q5: Is ERC still available?
A: The program ended in 2021 but eligible employers can still file amended returns to claim credits.