Annual report pursuant to Section 13 and 15(d)

EMPLOYEE RETENTION CREDITS

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EMPLOYEE RETENTION CREDITS
12 Months Ended
Dec. 31, 2021
Employee Retention Credits  
EMPLOYEE RETENTION CREDITS

NOTE 11 - EMPLOYEE RETENTION CREDITS

 

The Consolidated Appropriations Act, passed in December 2020, expanded the employee retention credit (“ERC”) program through December 2021. The credits cover 70% of qualified wages, plus the cost to continue providing health benefits to our employees, subject to a $7 cap per employee per quarter. Due to revenue declines we have experienced, we qualified for approximately $2,000 of employee retention credits (“ERC”) during the year ended December 31, 2021. The Company believes that there is reasonable assurance that it has complied with the ERC eligibility requirements and has elected an accounting policy to present government assistance as a reduction of the related expense. The ERC refund was recorded as an offset to certain payroll expenses in cost of sales of $1,300 and operating expenses of $700 in the accompanying statement of operations for the year ended December 31, 2021. As of December 31, 2021, the balance of $2,000 is presented as employee retention credit receivable in the accompanying balance sheet.