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Articles from The Insider’s Report archives go back over several years. Some articles may include date-sensitive information or other information that has changed over time.
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The ERTC (Employee Retention Tax Credit) is available to virtually all restaurants in Michigan.

It is a powerful tax credit that equals 50 percent of your employee’s pay up to a maximum of $5,000 per employee for 2020 and $14,000 per employee in 2021.

As of now, the period’s that are open are 1st, 2nd, 3rd and 4th quarters of 2020 and 1st and 2nd quarters of 2021. 

The amount of the credit will be a refund check issued directly to your business.

The calculations and recordkeeping required for this credit are complex and labor intensive but the amount of money available to you is major. 

As of the publication of this newsletter, Kallas is at the beginning of this process and has calculated 33 ERTC credits totaling $2,420,300 in credits.  That is an average of $73,300 per restaurant.

This is just for 2020.  Credits for 2021 have not been calculated yet so that will add to this total for each restaurant.

As we explain in another article in this newsletter, you have to pay taxes on the credit so the credit is reduced by the income tax at your individual tax bracket

As an example, if you are in a 30 percent tax bracket and your credit is $73,300, the net after tax benefit is $51,310 (70 percent of $73.300).  Still a nice chunk of money.

If you have already signed up with Kallas for the ERTC credit, please be patient.  We are in the middle of the process and PPP forgiveness must be obtained before the ERTC credit is calculated.

If you have not signed up yet, please contact Michelle at 313-962-6000 and she will send you the necessary paperwork to sign.

Also, if you know any restaurateurs who are not aware of this credit, please refer them to Kallas.  The major payroll companies do not have the accounting and tax resources to obtain this credit for you.  The full process requires a tax accountant.

 

 

 

 

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