What was the employee retention credit for Golden Krust Caribbean Restaurant in 2021?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
t 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 the 2024 Franchise Disclosure Document, Golden Krust Caribbean Restaurant received $580,958 in employee retention tax credits during 2021. These credits were applied for under the CARES Act and were received in 2022.
The employee retention tax credits are described as refundable federal payroll tax credits. These 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.
For a prospective franchisee, this information provides insight into how Golden Krust Caribbean Restaurant managed its finances during the COVID-19 pandemic. It demonstrates that the company was able to leverage government programs like the CARES Act to offset financial impacts and improve its financial position. While these credits are a one-time event, they highlight the company's ability to seek out and utilize available resources during challenging times.