How to Apply for and Get Employee Retention Credit (ERC)

Published on: 13 March 2023 Last Updated on: 12 September 2024

The Employee Retention Credit (ERC) is a tax credit that was introduced as part of the CARES Act in 2020 to help small businesses retain their employees during the COVID-19 pandemic. For wages given to qualified employees between March 13, 2020, and December 31, 2021, employers who participate in the ERC are entitled to receive a refundable tax credit of up to $5,000 per worker. The credit has since been extended and expanded under subsequent legislation, making it an important resource for small businesses that have struggled with the economic impact of the pandemic.

As a small business owner, you may be wondering if you are eligible for the ERC and how to go about claiming it. This guide will walk you through the eligibility requirements, calculation, and application process for the ERC. We’ll also answer some common questions about credit and provide tips for maximizing your benefit. If you’re a small business owner looking for ways to retain your employees and stay afloat during these challenging times, read on to learn how the ERC can help.

Eligibility Requirements

The eligibility requirements for the ERC are determined by the IRS and are based on several factors, including the size of the business, the impact of the pandemic on the business, and the number of wages paid to employees during the qualifying period.

Employers who had a significant drop in gross receipts compared to the same quarter in 2019 were considered eligible for assistance under the CARES Act. This condition was determined by two factors: first, whether the employer had a whole or partial suspension of activities as a result of a government order linked to COVID-19, and second, whether the firm had had a considerable decrease in gross receipts. Subsequent legislation has expanded eligibility to include employers that experienced a decline in gross receipts of at least 20% in any quarter of 2020 or 2021 compared to the same quarter in 2019, among other criteria.

It is important for small businesses to carefully review the eligibility requirements for the ERC to determine if they qualify for the credit. This will help ensure that they can maximize their benefits and receive the financial support they need to retain their employees and stay afloat during these challenging times.

ERC Calculation

The ERC is calculated as a percentage of qualified wages paid to employees during the eligible period. The credit rate is 50% of qualified wages for the first half of 2021 and 70% of qualified wages for the second half of 2021. The maximum amount of qualified wages that can be taken into account for each employee is $10,000 per quarter, which means the maximum credit per employee is $5,000 for the full year.

The maximum amount of the ERC is $5,000 per employee for the full year. This means that if an eligible employer pays qualified wages of $10,000 to an employee during the eligible period, they can claim a credit of $5,000 for that employee.

To claim the ERC, eligible employers can reduce their federal employment tax deposits or request an advance payment from the IRS. If the credit exceeds the employer’s federal employment tax liability, they can request a refund for the excess amount. It’s important to note that employers cannot claim the ERC and the same wages for other relief programs like the Paycheck Protection Program (PPP).

How To Apply For The ERC?

To apply for the ERC, eligible employers can claim the credit on their federal employment tax returns, including Form 941 or Form 943, for the eligible quarters. They can also request an advance payment of the credit by filing Form 7200 with the IRS. Eligible employers should consult with their tax advisor or accountant to determine the best method for applying for credit.

Documentation Required

To support their claim for the ERC, eligible employers must maintain documentation that shows the number of employees and the number of qualified wages paid to them during the eligible period. The documentation should also show the impact of the pandemic on the business, such as government orders or significant declines in gross receipts.

Deadline To Apply

The deadline to apply for the ERC is generally three years from the date the federal employment tax return is filed or two years from the date the tax is paid, whichever is later. Eligible employers should file their employment tax returns and claim the ERC as soon as possible to maximize their benefits.

It is important for small businesses to understand the application process for the ERC, including the documentation required and the deadline to apply.

Conclusion

The Employee Retention Credit (ERC) is a valuable financial relief option for eligible small businesses impacted by the COVID-19 pandemic. To successfully apply for and receive the ERC, small businesses must meet the eligibility requirements, understand how to calculate the credit, and follow the application process, including providing the necessary documentation.

The ERC can provide small businesses with much-needed financial support to retain their employees and sustain their operations during these challenging times. It is important for eligible businesses to take advantage of this program and consult with their tax advisor or accountant for guidance on how to maximize their benefits.

By following the guidelines outlined in this guide on how to apply for and get the Employee Retention Credit (ERC) for small businesses, eligible employers can receive the necessary financial support to navigate the pandemic and emerge stronger in the future.

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Abdul Aziz Mondol

Abdul Aziz Mondol is a professional blogger who is having a colossal interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, he loves to share content related to business, finance, technology, and the gaming niche.

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Redmine Demo Vs. Trello Demo: Choosing The Right Project Management Tool!

Welcome to the ultimate battle of project management tools: Redmine vs. Trello. It is no secret that choosing the right software can significantly impact your team's productivity and collaboration. Today, we will embark on a journey to explore the Redmine demo and the Trello demo options from the two popular project management tools. So, let's dive into the article to know the key features, pricing, and user reviews and find the perfect solution to manage your projects efficiently. Let the battle of the demos begin! Redmine Project Management Software Redmine is an open-source project management software that assists teams in efficiently tracking and managing projects. With its user-friendly interface, Redmine allows users to create projects, assign tasks, set priorities, and track progress. It offers a range of features, including issue tracking, time tracking, and Gantt charts. The flexibility and customizable nature of the Redmine software make it suitable for various industries and project management methodologies. Whether you're a small team or a large enterprise, Redmine aims to streamline your project management process and enhance collaboration. Redmine Software Features Customization One of Redmine's standout features is its high degree of customization. You can tailor the software to match your specific project management requirements. From custom fields and workflows to user roles and permissions, Redmine allows you to adapt the tool to fit your team's unique processes. Issue Tracking Redmine excels in issue tracking, offering a comprehensive system to create, assign, and prioritize issues. With features like status updates, due dates, and progress monitoring, Redmine ensures that your team stays on top of tasks, identifies bottlenecks, and resolves issues promptly. Integration Capabilities Redmine offers many integrations with popular tools and platforms, enabling seamless collaboration and data synchronization. Whether you need to connect with version control systems, customer support software, or communication tools, Redmine's integration capabilities make it a versatile solution for cross-functional teams. Redmine Pricing Let's talk about everyone's favorite topic: pricing. Redmine is an open-source project management tool that is free to download and use. You can customize it to suit your needs and enjoy its full features without worrying about breaking the bank. However, remember that Redmine might require technical expertise for setup and maintenance, so consider the associated costs if you don't have an in-house IT team. Redmine provides a self-hosted demo version that allows you to explore its features within a sandbox environment. The Red mine demo offers a great opportunity to test drive the software and understand its capabilities. However, setting up the demo might require some technical know-how, so if you're uncomfortable, you might need some assistance. Redmine Reviews Redmine has built a loyal following in the project management world. Users praise its flexibility, customization options, and robust issue-tracking capabilities. However, some mention that the learning curve can be steep, especially for non-technical users. It could be the perfect match for your team if you're willing to invest some time and effort to harness Redmine's power. Trello Project Management Software Trello is a visual project management tool that helps teams organize and prioritize tasks using a flexible board and card system. With its intuitive interface, Trello allows users to create project boards, add cards for tasks, and collaborate seamlessly. It offers tasks, assignments, due dates, and checklists to keep projects on track. The simplicity and ease of use of the Trello software make it a popular choice for individuals, small teams, and even large organizations. Whether you are planning a vacation or managing complex projects, Trello provides a visual and organized approach to project management. Trello Software Features Visual Task Management Trello's card-based interface makes task management a breeze. You can create cards for individual tasks, assign team members, add due dates, and attach relevant files. The visual nature of Trello's boards allows for a quick overview of the project's progress, ensuring transparency and easy collaboration. Task Assignments And Due Dates Trello allows users to assign tasks to team members and set due dates, ensuring accountability and timely completion. Assignees receive notifications, enabling them to stay informed about their responsibilities and deadlines. Easy Workflow Automation Trello's automation features, powered by its Butler functionality, save time and effort. You can automate repetitive tasks, set triggers and actions, and create rules to streamline your workflow. This feature reduces manual work and allows your team to focus on high-value tasks, boosting overall productivity. Trello Pricing Trello offers a tiered pricing structure that caters to different business sizes and needs. The software offers a free subscription with limited capabilities that is ideal for small teams or personal usage. If you require advanced functionalities like file attachments, automation, and team overviews, Trello's paid plans will be your go-to option, starting at a reasonable monthly fee. So, budget-conscious folks, take note of these pricing differences as you weigh your options. The vendor offers a cloud-based Trello demo that allows you to dive right in without any setup hassles. With a few clicks, you can start creating boards, adding cards, and experiencing Trello's intuitive interface. It's a user-friendly option that gives you a taste of what Trello offers without technical hurdles. So, if you prefer a quick and seamless demo experience, Trello's got your back! Trello Reviews Regarding Trello, users rave about its simplicity, visual appeal, and ease of use. The drag-and-drop interface and card-based system receive high praise for keeping teams organized and focused. Some users mention that Trello's free plan may feel limiting for more complex projects, but the paid plans unlock additional features. So, if you're all about simplicity and collaboration, Trello might be the tool you've been searching for. Redmine Demo Vs. Trello Demo—Concluding Remarks In the Redmine demo vs. Trello demo battle, the winner depends on your team's specific needs and preferences. Redmine excels in issue tracking, time tracking, and Gantt chart functionality, making it ideal for teams that require detailed project management capabilities. On the other hand, Trello offers a visual and intuitive board and card system, perfect for individuals and small groups looking for a simple and flexible approach to project management. When deciding, consider your team's size, project complexity, and desired features. Please take advantage of the demos provided by both platforms to experience their user interfaces and functionalities firsthand. With the right project management tool in your arsenal, you'll streamline workflows, enhance collaboration, and drive success. So, let the battle of the demos guide you toward finding your team's perfect project management solution. Read Also: Using Project Management to Maximize the Holiday Season at Work 7 Common Construction Project Management Problems 7 Convenient Services Project Management Companies Offer Landlords

Why OKRs Help Businesses Grow and Improve

Building a thriving business is far from easy. It will take quite a bit of work, dedication, commitment, and a little bit of luck for the best results. But did you also know that it requires the right planning, effective team members, and a relevant and actionable growth plan? It is surprising that many businesses fail to understand the importance of implementing measurable goals and growth-based plans of action that make sense for the firm. The truth is that many companies do not have clear-cut objectives and thus fail to set the right goals and then flounder their way to an eventual demise. But what if you can streamline these aspects and create a business that matters? It would be best if you still accounted for aspects that may get in the way of keeping your company healthy and robust. Indeed, over time, inefficiencies do crop up and can eat away at the company. Further, different objectives may come to the fore and lower the growth of the overall business. The critical point here is that structure matters for your business. It is what helps you to get from point A to point B. Sure, you may face difficulties along the way, but you will know that you are organized and able to overcome challenges. That is where OKRs come into the picture as they can help you grow your business in a clean, streamlined, and effective manner. You are able to measure what matters in your business and manage your team to meet those objectives regularly. See this blog to know the greater benefits of using OKRs in businesses. Here is what you need to know about why OKRs help businesses grow and improve. OKRs Address The Critical Aspect of Focus: See this blog contends that a lack of vision destroys companies. It is true that a lack of vision leads to a lack of focus. A wide variety of distractions can lead to the destruction of value and eventual deterioration. Indeed, that would mean that a significant portion of time is wasted, human capital is drained, and no real value is generated within the firm. A successful business will use OKRs to ensure several points: Projects contribute to the growth and well-being of the company One can quantify the value of the project to the company's growth objectives Projects are efficient and of high-impact See This Blog States that OKRs Are About Prioritization: The fact is that OKRs help with prioritization and alignment and are universal components in a successful business. These factors matter for large organizations and small, nimble organizations as well. The point is that OKRs are instrumental in clarifying thought, helping with strategic alignment, goal setting, and overall prioritization. It is a tool that also helps implement a framework that sets actionable and quantifiable goals that can do wonders for any business's growth. OKRs Help Optimize Operational Inputs for The Best Outputs: Your organization can turn to OKRs to take each step ferociously with critical decisiveness. Remember that each ferocious step will require clear objectives, continuous focus, accountability measures, and overall dedication. By taking advantage of OKRs, you can set measurable goals, find company alignment, and have efficient growth that surpasses your competition. Most successful companies use OKRs to instill a performance-based culture as it focuses on growth initiatives and minimizes hassles. Remember that performance metrics through OKRs call for effectiveness and efficiency, minimizing waste. What are the Three Types of OKR? When setting OKRs (Objectives and Key Results), it is important to understand the three primary types: Committed OKRs: The employees will have to achieve this. They normally come from top-level management, and there is no leeway for them. Therefore, teams should put all their energy into delivering these results. Aspirational OKRs: These OKRs are designed to stretch the organization. At first, they may even appear unattainable. They foster innovation and thinking outside of the box as they often require a real breakthrough in current performance to achieve. Learning OKRs: These are experimental goals. Their purpose is to explore new approaches or gather insights. Even if the goal isn’t achieved, the process itself provides valuable lessons. What are the Benefits of OKR? OKRs offer a number of benefits for businesses. They create focus, accountability, and alignment across the organization, but let’s take them one by one. This will clear out the benefits and help us understand the difference between them. Clarity and Focus: By using OKRs, you remove any ambiguity about what you are trying to achieve and how you will achieve it. Alignment: OKRs keep everyone focused in the same direction–for better or worse. Measurable Outcomes: With OKRs, you either hit your goal or don’t. It’s easy to objectively evaluate success and drive rejection avoidance. Transparency: OKRs are public and shared with the entire organization. Making it easier for teams to collaborate and hold each other responsible. Motivation: OKRs drive behavior. Whether it’s setting ambitious goals or hitting set targets, they create focus and drive for teams. Finally: How to Write a Good OKR Objective? It’s all about the objective. Here is a simple formula: Avoid Being Vague: Do not tolerate any vagueness in your goals. You should be aware of what exactly you want to achieve. For example, instead of “Increase sales,” you may write “Increase sales by expanding to three new markets.” Make it Ambitious Yet Achievable: The goal should be something that challenges you and pushes you to work outside your comfort zone but is still achievable. Tie it to a Measurable Outcome: Your key results and goals should have a way of being measured so you can track progress throughout the year. Read Also: Top Ways Video Marketing Will Help Your Business Grow What Is The Future Of Digital Marketing In Regards To Shaping Up Small And Large Businesses? Benefits of Pay Per Click Services to Your Business

Google Ads MCC: Things To Know About Google Ads Manager

You might be wondering about the best ways to manage your Google Ads account. Well, you do not have to worry much if you have Google Ads MCC. If you want to know more about it, you have reached the right place! MCC is a Google Ads account type for advertisers or agencies managing multiple client accounts. MCC stands for "My Client Center." Using a single login, agencies can access multiple Google Ads accounts with the help of the Google My Client Center account. But is that all that you should be knowing? Well, keep reading this blog till the end to learn more about the same… What Is Google Ads MCC? Google Ads MCC stands for Google Ads My Client Center. It is a powerful tool provided by Google that allows advertisers and agencies to manage multiple Google Ads accounts from a single centralized interface. With an MCC, you can link and control multiple client accounts, making it easier to manage and optimize advertising campaigns across various clients or businesses. According to Google, the “manager account is a Google Ads account that lets you easily view and manage multiple Google Ads accounts (including other manager accounts) from a single location. This article explains where and how to create manager accounts.” Using a single login, agencies can access multiple Google Ads accounts with the help of the Google My Client Center account. An MCC makes it simple for agencies to view performance statistics across multiple accounts from a single, centralized location because all client accounts can be accessed through a single login. In other words, MCC is the AdWords account type that lets advertisers use a single interface to access multiple client accounts. Users gain simplified reporting across multiple accounts and additional advanced billing and management features by utilizing an MCC. Features Of Google Ads MCC Now that you are aware of what Google Ads MCC is, it is time for you to learn about the features of the same. Here are some of the features of the Google Ads Manager Account that you need to know: 1. Consolidated Account Management MCC provides a consolidated view of all linked accounts, allowing you to navigate between them seamlessly. You can access and manage multiple accounts without the need to log in and out of individual accounts. 2. Efficient User Access And Permissions MCC enables you to grant access and permissions to users or agencies at different levels, providing granular control over what actions they can perform within each account. This allows for effective collaboration and management between advertisers and agencies. 3. Streamlined Campaign Management You can create and manage campaigns, ad groups, keywords, and ads across multiple accounts simultaneously, saving time and effort. MCC also allows you to easily copy campaigns and settings from one account to another, ensuring consistency and efficiency in advertising strategies. 4. Performance Monitoring And Reporting MCC provides aggregated performance data across all linked accounts, allowing you to monitor and analyze campaign performance holistically. You can generate reports at the MCC level or for individual accounts, helping you gain insights and make data-driven decisions. 5. Billing And Budget Control MCC offers consolidated billing, making it easier to manage budgets and payments across multiple accounts. You can set budgets at the account level or MCC level, facilitating better financial control and planning. 6. Access To Additional Tools And Features Google Ads MCC provides access to additional beneficial features and tools for managing multiple accounts, such as Google Ads Scripts and the Google Ads API. These tools enable automation, customization, and integration with external systems. How Does Google Ads MCC Work? You might be wondering how the MCC Account for Google Ads works. Well, I have the answer for you! Google Ads MCC (My Client Center) works by providing a centralized management platform for advertisers and agencies to manage multiple Google Ads accounts. Here's how it works: 1. Account Creation To use Google Ads MCC, you first need to create an MCC account. This is done by signing up for an MCC account through the Google Ads interface. 2. Linking Client Accounts Once your MCC account is set up, you can link multiple client accounts to it. These client accounts are the individual Google Ads accounts associated with different businesses or clients you are managing. 3. Access And Permissions MCC allows you to grant access and permissions to users or agencies at different levels. You can assign different roles to users, such as account manager, billing manager, or standard user. This enables collaboration while controlling the level of access and actions each user can perform within the linked accounts. 4. Account Navigation After linking client accounts, you can navigate between them seamlessly within the MCC interface. This eliminates the need to log in and out of individual accounts and provides a centralized dashboard to manage all the linked accounts. 5. Campaign Management MCC allows you to create, edit, and manage campaigns, ad groups, keywords, and ads across multiple accounts simultaneously. You can perform tasks like campaign creation, budget adjustments, keyword optimization, and ad copy updates within the MCC interface, which then reflects the changes across the linked accounts. 6. Performance Monitoring And Reporting MCC provides aggregated performance data across all linked accounts. You can monitor campaign performance, view key metrics, and generate reports at both the MCC level and individual account level. This helps you track the success of your advertising efforts and make data-driven decisions. 7. Billing And Payments MCC offers consolidated billing, allowing you to manage budgets and payments across multiple accounts more efficiently. You can set budgets at the account level or MCC level, and billing details can be accessed and managed within the MCC interface. 8. Additional Tools And Features Google Ads MCC provides access to advanced tools and features like Google Ads Scripts and the Google Ads API. These tools allow for automation, customization, and integration with external systems, enhancing the capabilities of managing multiple accounts. By utilizing the features and functionalities of Google Ads MCC, advertisers and agencies can streamline account management, campaign optimization, collaboration, and reporting across multiple Google Ads accounts. It simplifies the process of managing and scaling advertising efforts for various clients or businesses. What Are The Benefits Of Mcc? Google Ads MCC enhances account management, campaign efficiency, collaboration, and reporting capabilities. It empowers advertisers and agencies to streamline their advertising operations, improve performance monitoring, and drive better results for their clients. Using Google Ads MCC (My Client Center) offers several benefits for advertisers and agencies. Here are some key advantages: 1. Efficient Account Management MCC provides a centralized interface to manage multiple Google Ads accounts. Instead of logging in and out of individual accounts, advertisers can access and control all linked accounts from a single dashboard, saving time and effort. 2. Streamlined Campaign Management With MCC, you can create and manage campaigns, ad groups, keywords, and ads across multiple accounts simultaneously. This streamlines campaign setup and optimization, ensuring consistency and efficiency in advertising strategies. 3. Enhanced Collaboration MCC allows agencies to collaborate with their clients more effectively. Advertisers can grant access and permissions to users or agencies at various levels, enabling them to work on specific accounts or campaigns. This facilitates seamless collaboration and coordination between multiple stakeholders. 4. Centralized Performance Monitoring MCC provides aggregated performance data across all linked accounts, allowing advertisers to monitor campaign performance holistically. You can analyze key metrics, identify trends, and gain insights into the overall performance of your advertising efforts. 5. Customized Reporting MCC enables you to generate comprehensive reports at the MCC level or for individual accounts. This allows you to customize reports according to your requirements, providing detailed insights into the performance of specific campaigns, ad groups, or keywords. 6. Budget Control And Billing Efficiency MCC offers consolidated billing, making it easier to manage budgets and payments across multiple accounts. Advertisers can set budgets at the account level or MCC level, providing better financial control and planning. This simplifies the billing process and helps manage expenses more efficiently. 7. Access To Advanced Tools And Features Google Ads MCC provides access to additional tools and features, such as Google Ads Scripts and the Google Ads API. These tools enable automation, customization, and integration with external systems, allowing advertisers to optimize and scale their campaigns more effectively. How To Create A Google Ads MCC Account? A manager account cannot be used to directly create campaigns or advertise products. However, it can be used to create campaigns on behalf of a sub-account that you manage. Now that you know almost everything about Google Ads MCC, it is time for you to learn about how to create this account for your Google Ads. keep reading this article till the end to learn more about creating a Google MCC account! Here are the steps that you need to take to create an Ad Manager Account on Google: Create an account on Google with the Google account you want to use as a manager. Click Create a manager account on the manager account page. Give the manager account a name. In the Access & Security section of the Google Ads UI, this is the name that your merchants see as their manager. Select the account's use. Choose "Manage other people's accounts" if you need to manage sub-accounts for other advertisers. Choose your time zone and country. You can't change the time zone you choose later because it is used for billing and reporting. We suggest picking the time zone where your company is based. Select a fixed currency for billing your account. Choose the currency you use for business, as we suggest. Billing takes place in the currencies of the sub-accounts. Select "SUBMIT." How To Create A Manager Account From A Manager Account Homepage? In order to create a manager account from a manager account homepage, here are the steps that you need to follow: Click Create a manager account on the Google Ads manager account homepage. Sign in with the email address you want to use to manage your new manager account if you haven't already. Give the account you're managing a name. Your customers will see this name in their client account. Note: URLs will no longer be accepted in account names as of March 2023. Select whether you intend to use the account to manage your own Google Ads accounts or to manage those of others. Choose your time zone and country. This time zone cannot be changed because it will be used for billing and reporting on your account. It's possible that you should pick the time zone where you work. Note: Time zones are immutable. For your account, choose a currency that stays the same. It's possible that you should pick the currency in which you conduct business. The currencies that have been selected by your client accounts will be used for billing. Keep in mind that you will be able to see any cost-related information converted to the currency used by your manager account when you are checking performance or budget information across accounts in your manager account. In your manager account, find out more about how to convert currencies. To begin, select Explore Your Account. Wrapping it up! Google Ads MCC is a centralized management platform that allows advertisers and agencies to efficiently manage multiple Google Ads accounts, streamline campaign management, monitor performance, control budgets, and collaborate effectively. In case you were searching for information related to Google Ads MCC and how it can help you, I hope that this article can be of help to you. If there are any other queries related to the same, feel free to let me know. All that you need to do is scroll down till you reach the bottom of the page. Then leave your comments and suggestions in the comment box below. More Resources: The Basics on Google Local Algorithm How Does Google Ads Generate Responsive Search Ads? Google Adsense Login: How To Login To Google AdSense Efficiently?

How to Apply for and Get Employee Retention Credit (ERC)

Eligibility Requirements

ERC Calculation

How To Apply For The ERC?

Documentation Required

Deadline To Apply

Conclusion

Helpful Questions To Ask An Interviewee

Why Military Status Verification Is Important For Businesses

Abdul Aziz Mondol

Abdul Aziz Mondol is a professional blogger who is having a colossal interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, he loves to share content related to business, finance, technology, and the gaming niche.

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Redmine Demo Vs. Trello Demo: Choosing The Right Project Management Tool!

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How to Apply for and Get Employee Retention Credit (ERC)

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Deadline To Apply

Conclusion

Share this Article

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Abdul Aziz Mondol is a professional blogger who is having a colossal interest in writing blogs and other jones of calligraphies. In terms of his professional commitments, he loves to share content related to business, finance, technology, and the gaming niche.

Leave a Reply

Popular

Follow Us

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