What was the amount of employee retention credit for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
nding balances of approximately $2,932,524 and $4,207,275 as of December 31, 2022 and 2021, respectively. Subsequent to year end these loans were repaid in full by Bakery.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2022 AND 2021
NOTE 12 - PAYROLL TAX RELIEF AND EMPLOYEE RETENTION TAX CREDIT PROGRAMS:
Payroll Tax Relief:
The CARES Act allowed employers to defer the deposit and payment of the employer's share of Social Security taxes due during the "payroll tax deferral period" from March 27, 2020, through December 31, 2021. Half of the deferred amount was due December 31, 2021, while the remaining 50 percent was due December 31, 2022. These payroll taxes were paid as of December 31, 2022, and therefore are not reflected as a current liability, while $50,438 was included in current liabilities as of December 31, 2021, on the balance sheets.
Employee Retention Tax Credits:
During 2021, the Company applied for Employee Retention Tax Credits totaling $580,958 under the CARES Act, which w
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the company received $580,958 in Employee Retention Tax Credits during 2022. These credits were applied for in 2021 under the CARES Act.
The Employee Retention Tax Credits were available to eligible employers whose businesses were financially impacted by COVID-19. Golden Krust Caribbean Restaurant accounts for these credits as other income on their consolidated statements of operations.
This indicates that Golden Krust Caribbean Restaurant experienced financial impacts from COVID-19, which made them eligible for these credits. For a prospective franchisee, this detail provides insight into how the company navigated the economic challenges posed by the pandemic and leveraged available relief programs.