1. What is the Employee Retention Credit?

The Employee Retention Credit (ERC) is a refundable tax credit for businesses that kept employees on payroll during qualifying periods. In Queensland, 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 eligible employees during qualifying period
• \( 0.7 \) — 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 Calculation

Details: Accurate ERC calculation helps businesses claim the maximum allowable credit while maintaining compliance with Queensland tax regulations.

4. Using the Calculator

Tips: Enter qualified wages in USD per employee per quarter. The amount must be greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: What counts as qualified wages?
A: Wages paid to employees during eligible periods, including certain health plan expenses.

Q2: Is there a maximum credit per employee?
A: Yes, $7,000 per employee per quarter.

Q3: Which businesses are eligible?
A: Businesses that experienced full/partial suspension or significant revenue decline.

Q4: Can ERC be claimed with other relief programs?
A: Generally no, you cannot claim ERC for wages paid with PPP loan forgiveness.

Q5: How is the credit claimed?
A: Through payroll tax filings or amended returns for previous quarters.