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What Is The Employee Retention Credit? Receive Up To $26,000 Per Employee | Payroll Tax Credits - YouTube
Channel: Frost Law
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hello everybody my name is matt edelman and i'm聽
here with rebecca shepard for another episode of聽聽
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away with taxation we're here to talk to you about聽
the employee retention credit again and to espouse聽聽
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the benefits that are out there for many of the聽
businesses that have been impacted by the pandemic
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what we're noticing in our practice is that tax聽
professionals are missing these credits for their聽聽
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clients they're not able to determine that the聽
clients are eligible because they believe that聽聽
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if they haven't lost money during the pandemic聽
then they aren't eligible for the credit and聽聽
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that's just simply not the case and the credit聽
is up to thirty three thousand 000 per employee聽聽
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and that's a refundable credit that's cash聽
in your pocket that's something to look for聽聽
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so we want to make sure that everyone is looking聽
out for it and if it's possible to help you聽聽
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get the credits we're happy to do so the first聽
misconception that professionals have is that聽聽
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if you were eligible for a ppp loan and you聽
got forgiveness on that loan you are not聽聽
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eligible for the employee retention credit this聽
is false if you received ppp funds you are still聽聽
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able to get the employee retention credit聽
for ppp you aren't able to double dip wages聽聽
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with erc but that doesn't mean that you can't聽
use both programs to maximize both credits聽聽
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for example if somebody makes twenty thousand聽
dollars per quarter or eighty thousand聽聽
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dollars a year for that quarter you can use ten聽
thousand dollars of wages toward the erc credit聽聽
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and ten thousand dollars toward ppp聽
forgiveness this is going to maximize聽聽
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both credits and give you the most dollars in聽
the bank you cannot double dip with ppp and聽聽
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erc funds meaning that you cannot use funds that聽
are used to claim the employee retention credit聽聽
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to apply towards ppp loan forgiveness this聽
is why it's important to find an expert to聽聽
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help you calculate the maximum possible credit聽
while is still achieving ppp loan forgiveness聽聽
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another common misconception that we find that聽
people are realizing about erc is that if your聽聽
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income went up or has not significantly聽
decreased you are not eligible for the聽聽
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erc so there is a revenue component where you聽
can be eligible if your revenue went down 50聽聽
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in 2020 or 20 per quarter quarter over quarter in聽
2021 you are eligible for erc but that's not the聽聽
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only way another opportunity for erc is whether or聽
not your business was substantially impacted by a聽聽
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government shutdown so what does that mean if your聽
business is broken up into multiple components for聽聽
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example a restaurant you have indoor dining you聽
have takeout if indoor dining represents more聽聽
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than 10 of your revenue historically and indoor聽
dining was impacted by a government shutdown聽聽
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or government orders forcing you to socially聽
distance and limiting the capacity of your dining聽聽
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room by 50 you're now eligible for the employee聽
retention credit despite the fact that say your聽聽
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takeout sales went through the roof and you've聽
actually done pretty well during the pandemic聽聽
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this is an opportunity that professionals are聽
missing and not looking through carefully matt聽聽
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can you give us another example sure let's use聽
a manufacturer as an example a manufacturer can聽聽
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qualify for the employee retention credit聽
because of a disruption in its supply chain聽聽
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let's say a vehicle manufacturer has a supplier of聽
carburetors that was shut down entirely due to a聽聽
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government order because of that the vehicle聽
manufacturer's supply chain was disrupted聽聽
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and they could not complete their聽
vehicles for production and sale聽聽
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great let's do one more example let's look at a聽
law firm that primarily specializes in litigation聽聽
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well the courts were closed for a good part of聽
2020 and 2021 so how does that impact the law聽聽
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firm more than 10 percent of its revenue typically聽
derived from litigation costs directly going to聽聽
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court was impacted and therefore they're now聽
eligible for the credit a lot of professionals聽聽
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are missing these types of eligibility criteria聽
because they're not realizing that if your income聽聽
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went up or didn't significantly decrease that聽
you're eligible for these credits we're happy聽聽
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to take a second look at anyone who's been told聽
they are not eligible for the erc or anyone who聽聽
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has any questions about whether or not they聽
are eligible or able to maximize these credits聽聽
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all of our information is below as usual if you聽
could please give us a like we'd appreciate it聽聽
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if you've got any comments please let us know聽
and we look forward to seeing you next time
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you
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