Case Study K

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Client K, a computer numerical control, or CNC, machining services manufacturing company, is entitled to a $129,237.68 refund check for the Employee Retention Credit. The manufacturing firm specializes in computer numerical control (CNC) machining. This method removes layers of material from a stock piece using electronic controls and machine tools, resulting in a custom-designed item. They suffered a setback in Covid-19, and its gross receipts fell by more than 20% in 2021 compared to the same quarter the previous year.

We ran an Employee Retention Credit Service on wages paid to full time employees after March 12, 2020 to discover if any employee salaries qualified for the employee retention credit. Because these wages would not qualify, we took into account any Payroll Protection Program loans and forgiveness over the time period. Client K is eligible for a refund check from the IRS in the amount of $129,237.68 for the employee retention tax credit.