Quarterly report pursuant to Section 13 or 15(d)

Other receivable

Other receivable
3 Months Ended
Mar. 31, 2023
Other Receivables, Net, Current [Abstract]  
Other receivable

Note 4 – Other receivable


Other receivables consisted of the following:


    March 31,
    December 31,
Employee retention tax credits   $ -     $ -  
Accrued sales tax receivable from customers*     93,942       237,243  
Other     (6,921)       (6,921 )
Total Other receivable   $ 87,021     $ 230,322  


* At December 31, 2022 management estimated that WCI’s accrued sales tax receivable was $237,243 out of the remaining $285,128 that WCI was entitled to collect at year end. At March 31, 2023, WCI received $143,301 from WCI customers and management estimates that an additional $93,942 in accrued sales tax will be received from WCI clients.


In 2022, WCI received an Employee Retention Tax Credit (“ERTC”) in the amount of $1,350,161, in conjunction with WCI’s professional employer organization’s receipt and application of the same to WCI leased employees. The ERTC was initially established by Section 2301 of Coronavirus Aid, Relief and Economic Security Act of 2020, as amended by Sections 206-207 of the Taxpayer Certainty and Disaster Relief Act and by Division EE of Consolidated Appropriation Act of 2021 and Section 9651 of American Rescue Plan Act of 2021; which was authorized by Section 3134 of the Internal Revenue Code. The Consolidated Appropriation Act of 2021 and American Rescue Plan Act of 2021 amendments to the ERTC program provided eligible employers with a tax credit in an amount equal to 70% of qualified wages (including certain health care expenses) that eligible employers pay their employees after January 1, 2021 through December 31, 2021. The maximum amount of qualified wages taken into account with respect to each employee for each calendar quarter is $10,000 so that the maximum credit that an eligible employer may claim for qualified wages paid to any employee is $7,000 per quarter. The credit is taken against an employer’s share of social security tax after WCI’s professional employer organization files applicable amended quarterly tax filings on Form 941-X for each applicable quarter. The receipt of the tax credit improved WCI’s liquidity in 2022, due to the effects of the credit. WCI’s professional employer organization’s qualification and application of credits for wages paid in 2020 and 2021 does not grant assurances that WCI or WCI’s professional employer organization will continue to meet the requirements or that changes in the ERTC regulations including changes in guidance provided by the IRS with respect to the implementation and operation of the ERTC, will not be adopted that could reduce or eliminate the benefits that WCI and WCI’s professional employer organization may receive or qualify for.


At December 31, 2021, an ERTC balance of $33,222, was received by Mentor as a refund in the first nine months of 2022. ERTC income of $0 is reflected in other income for the three months ended March 31, 2023 and 2022 in the condensed consolidated income statements.