Other receivable

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Other receivable

Note 4 – Other receivable

Other receivables consisted of the following:

Schedule of other receivables

	September 30, 2023		December 31, 2022
Employee retention tax credits	$	-	$	-
Accrued sales tax receivable from customers*		20,374		237,243
Other		-		(6,921	)
Total Other receivable	$	20,374	$	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. As of September 30, 2023, WCI received $206,671 from WCI customers and management estimates that an additional $20,374 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, 2022. 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.

ERTC income of $0 and $1,350,161 was reflected in other income for the three and nine months ended September 30, 2022 in the condensed consolidated income statement. WCI received the ERTC based on qualitative information submitted. During the three months ended September 30, 2022, $1,272,263 was claimed against current payroll tax liabilities as they became due, and the remaining credit of $77,898 was included in other receivable in the condensed consolidated balance sheet at September 30, 2022. ERTC income of $0 is reflected in other income for the three and nine months ended September 30, 2023 in the condensed consolidated income statements.

The December 31, 2021, ERTC balance of $33,222, was received by Mentor as a refund in the first nine months of 2022. The balance at December 31, 2022 was $0.