Employee Retention Tax Credit How to Determine Your Credit [with worksheet!]
ฝัง
- เผยแพร่เมื่อ 3 ก.พ. 2021
- 🚨 Guidance has changed since the recording of this video. For the most recent updates and information you need to know check out the FULL ERTC playlist:
• Employee Retention Tax...
Please Note the IRS Announced in September 2023 that it will not process any more ERC claims in 2023 as they investigate fraudulent claims. You can still file amended payroll returns to claim the credit right now, they just won't be processed at this time. Watch my video here on the update: • ERC update 2023 | Free...
Grab my ERTC worksheet which includes both the 2020 and 2021 eligibility decision trees AND a calculator that will help you determine which quarters you qualify for a tax credit AND helps you estimate your tax credit! ✔️ jamietrull.com/ertc
Employee Retention Tax Credit How to Determine Your Credit [with worksheet!] Are you eligible for the ERTC?
This video goes over how to get your RETROACTIVE 2020 tax credit AND make sure you get your tax credit for 2021!
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The spreadsheet was VERY helpful! Brava!
Glad you find it helpful! The intro pricing of $7 is over, but its still a STEAL at $17!
Is there a website that shows how much each business/nonprofit has currently received as far as employee retention tax credit?
GREAT video with extremely helpful spreadsheets. Includes ALL essential information in less than 25 minutes! Very impressive.
I loved this. I'm a telemarketer that sells accounting to businesses and then turns the new client over to a local firm. This is going to be a windfall. My guess is that this is the best marketing scheme to come along in 100 years for getting new mid-sized clients in the door. THANK YOU for doing such a simple presentation. I was on a 2 hour webinar yesterday and left 'tired.'
From one CPA to another you did a great job explaining this complex topic! Kudos to you!
Glad it was helpful!
Great video- best one I have seen so far!
You make this topic quite understandable! The spreadsheet is very helpful. Thank you.
so glad!
Wonderful video. Thank you so much for the help you are giving to so many!
Sooo helpfull. Thank you, many clients asking for help. I think I get it now. Yeah!
Thank you Jamie as always is good to see your well informed videos.
My pleasure!
Great job, very nicely explained. Thanks
A brilliant speadsheet! Thank you!
thank you!
Superbly helpful
Thk u JT !
Great Video! Thank you
I purchased your spreadsheet... well worth it....
Awesome, thank you!
I have been following you since the beginning of the Craziness in the world and all I can say about you and your team is "Gift from the Heaven's". Thank you!
you are so kind!!
yes! 100% agreed! I don't know how I would've gotten thru all of this without the help Jamie and her team has given for the easy-to-understand steps to apply for all of the funding that's available to help.
Amazing explanation and example.
Glad you liked it!
Helpful. Thank you
Thank you for explaining this difficult subject.
you are very welcome!
Hello again,
Do 'Essential Businesses' such as Child Care Providers qualify if they were partially required to reduce their business due to Executive Orders for shutdown?
Very helpful thank you. If you claim the credit, do you have to adjust the amount of wages deducted on the federal and state return?
Very informative video indeed! Will a COVID grant from the state or city/county count as Gross Receipt for the purpose of calculating ERTC?
Great presentation! I am going to have one happy, very surprised client when I amend her 941 and get her some substantial cash back.
Yes!! So many people are missing this one!
Hi Jamie! Thank you for this explanation. It is very helpful! I looked over the spreadsheet and noticed that the decrease in gross receipts qualification was set to consider anything below 19% as qualifying for 2021. Do we always assume that we are rounding up? Thanks again for making this digestible!
Please do a video on filling out a 941 x. Thank you
following
Very smart, young, and pretty 😍. Extremely informative, helpful, and enjoyable to watch.
Thanks a lot 😀
You got it!
I purchased the spreadsheets which were wonderful! I just have questions about the 941x. Is line 30 supposed to be same as 941 line 5a or the amount from spreadsheet?
Hii Jamie I have one suggestion for you as I am working with a CPA firm so there is a difficulty that is faced by new commerce that is about TAX Returns you can start making the video on 1040s 1120s etc.
Just to clarify, the qualification is current quarter compared to 2019 quarter even in 2021? Its not '21 qtr compared to '20 qtr? Also, if I have 24 weeks to spend my PPP money, but I was funded on 2/3/21, is it acceptable to defer using the money until 4/1 in order to qualify for 1st quarter ERTC? I will still have 16 weeks to spend the PPP money beginning 4/1. Just don't want to have that bite me on the back end? Thanks for the spreadsheet and video!!!!
Hi Jamie. Just purchased the spreadsheet and started watching the video. The video states the cost of spreadsheet is $7 but I was charged $17. Did I get the right thing? Thanks!
Thanks Jamie! Great explanations. I assume if payroll is reimbursed by a Federal cost reimbursable grant, we can't take a ERC on it like the PPP? Am I correct? For a non-profit, what about a foundation grant that is NOT cost reimbursable, but salaries where a part of their budget? SO, not directly reimbursed? But indirectly covered as part of the overall grant? HAHA, I'm your NPO accountant follower pretty much since Day 1 of pandemic! :)
Thank you for taking your time to create the worksheet and explaining how to use it. I wonder if you are schedule C without an employee, but you've received PPP, this still applies?
unfortunately this one doesn't apply to those without employees.
@@JamieTrull Thank you so much, Jamie!! You've been so helpful during this pandemic! Thank you!!
Moderately helpful as it does calculate what you need, but the 941 Instructions are out of date as newer instructions have supplanted that.
Those are just included as reference material. We do also include the link to the most recent version. The calculations per the spreadsheet are not impacted.
Excellent , You sound great and helpful _ EA Jagdish shah
Thank you for your videos. Excellent spreadsheet!!
This is the story at our restaurant with less than 100 employees.
Governor issued an order which lifts the requirement that bars and restaurants close after 10 p.m. The statewide order for 50% indoor capacity at restaurants remains in place.
My question is whether we can be eligible for Q2, Q3, and Q4 2020 and Q1 2021.
Thank you again!!
From the IRS website..."An employer that operates an essential business is not considered to have a full or partial suspension of operations if the governmental order allows the employer's operations to remain open. However, an employer that operates an essential business may be considered to have a partial suspension of operations if, under the facts and circumstances, more than a nominal portion of its business operations are suspended by a governmental order. For example, an employer that maintains both essential and non-essential business operations, each of which are more than nominal portions of the business operations, may be considered to have a partial suspension of its operations if a governmental order restricts the operations of the non-essential portion of the business, even if the essential portion of the business is unaffected. In addition, an essential business that is permitted to continue its operations may, nonetheless, be considered to have a partial suspension of its operations if a governmental order requires the business to close for a period of time during normal working hours."
Clear as mud, eh? I own a restaurant as well. The key sentence I believe is "However, an employer that operates an essential business may be considered to have a partial suspension of operations if, under the facts and circumstances, more than a nominal portion of its business operations are suspended by a governmental order."
Closing down 50% of your lobby would appear to me to be 'more than a nominal portion of 'your' business operations suspended by a governmental order. Which makes sense. Our foot traffic has decreased significantly more than "nominal".
Would it affect the ERTC if you reduce the pay rate and hours of the employees? Instead of full-time make them part-time? Appreciate your input on this. Thank u in advance!
Thank you Jamie for good information. I have 2 question to ask you.
1. I am a restaurant owner and work as a chef for the restaurant and pay myself a salary on payroll in S-Corp. Did u mean that I am not eligible ERTC for my own wages which is the payroll? The government shut down Dinning in 2020.
2. Does part time employee included for qualified wages for 8 employees on the payroll or just 30 hours full time employees?
Thanks
Can you claim all qualified wages for all quarters on 4th Quarter 941X for 2020?
Thanks for explaining all of this, ERTC for year 2021 already apply 2nd PPP and should get money soon mean I cannot take advantage of ERTC after I receive 2nd money right?
you still can! You just have to back out wages paid with PPP from the qualifying wages you can claim a credit on.
Subscribed. Thanks! Do I have to file a 941X for EACH quarter in 2020 vs. filing for the whole year in Q4 only. We were under government mandate in 2020 for all quarters beginning on March 13. Your spreadsheet appears to indicate that I will need to do a 941X for Q2, Q3 and Q4 -- with Q1 going in Q2? Or can I just do the entir year on Q4?
You need a 941-X for each eligible quarter as you need to duplicate the 941 for "original" information on the 941-X. However, if you have < $1k payroll for the year, and you were on an annual submission of 944 you likely can amend the 944
The CAA allows you to compare 4Q2020 to 4Q2019 for the 20% gross receipts drop to qualify for the ERTC. Otherwise, a business would have to wait until the beginning of April to see if its 1Q2021 gross receipts fell by 20% as compared to 1Q2019.
Just because a business qualifies for ERTC in 1Q2021, it does not automatically qualify for 2Q2021. The rules have changes from the ERC 2020.
If they qualify in Q1 2021 due to a 20% drop in gross receipts or more in Q1, they WOULD qualify in Q2 automatically.
@@JamieTrull Thank you so much for the video. Could you provide a reference to the rule/regulation from an authority (IRS/SBA) FAQ/interpretation of how Q2 is automatic upon qualifying for Q1 2021 (in our case we compare Q1 2021 to Q1 2019)? Thanks in advance for your research/expertise.
Thank you for making this difficult info more user friendly. Only thing I can say is I was disappointed when I went to get your spreadsheet and you said in the video it was $7, however; upon getting to your site it was $17. Is it worth $17 yes i believe sp but I would have respected up front honesty instead of feeling duped into buying the worksheet. Just in my opinion always best to give accurate information as it gives you more credibility overall. In conclusion your understanding and explanation is the best I have seen so thank you.
Hi there - the spreadsheet was originally $7 for the first week, and then we increased the price of it (mostly based on feedback from others that we should!). I did update about that n the description, but unfortunately can't update the video itself. Most people have told me it is worth WAY more than $17!
If the gross receipts from 2020 were at zero Bc we were not open does that make us eligible since it’s 50% less
Thank you for this video. Do businesses such child care providers deemed 'Essential' but were ordered partial shut down qualify for the ERTC?
Yes. Being an essential business has nothing to do with the qualification. In fact, there is a list of many, many reasons why you WOULD qualify. Such as: You had to close early or close because of a curfew or stay at home order, couldn't access critical equipment while working from home, took more than a couple weeks to get your home office set up so you could telework outside the office. These are just a few listed reasons.
@@mevans6453 Thank you!
If we qualify for the tax credit, how do we file the amendment? Do you have video to show the steps?
Is Form 941X line 18 indeed non refundable and only line 26 is refundable?
Hello, I thought you said in your video the spreadsheet was $7?
My business does not meet gross receipt decline % but has local government order to close the dine in and we have FTE less than 100, for the qualified wages, it is the wages paid to employees during the suspension order or the entire wages in the quarter ?
Check the decision tree- if you were shut down and have less than 100 employees, its all wages paid to employees during the time you were fully or partially shut down.
I ordered & paid for a workbook this morning, Dec 6th, about 11am EST. Have not received yet?
Just seeing this! Sometimes firewalls on the recipient side cause our emails not to go through. Email us at support@balancecfo.com if you still haven't received it and we'll get it to you ASAP!
Do you know what number to contact at IRS about your ERTC Advance Refund.? We faxed a 7200 for Quarter 2 on July 7, 2021. We received on 7/30/2021 an email from USPS inform delivery that it was in that day's mail with a scan of the envelope. However, we have not received it in the mail as of 8/3/2021. We did report it missing to the USPS. I wanted to contact IRS about it give them this information. I did try a few different numbers but cannot not get through to anyone.
I didn’t see or hear anything on the spreadsheet for businesses started in 2020 or beyond. We started our business during January of 2020 so we have no sales in 2019 to compare it against. Did I miss something? I know you talked in another video that we could be eligible.
Yes, there are special rules for recovery startup businesses. I talk about that some in the March 2021 Update (note that there was subsequently another update that removed ERTC for Q4). You can see all three videos on ERTC here, including the most recent updated in Nov 2021. th-cam.com/play/PLB3HgjTThlboouAqkuW3fi7kEipRUF7Cu.html
Hey Kyle, you would qualify under the startup recovery program. Let me know if you need help with anything.
If a business qualifies in one quarter due to a shut down, is it true that they don’t automatically qualify the following quarter?
correct -that applies only for those that qualify due to the gross receipts decline
How does They know if they were furloughed?
if my employer is receiving ERTC but not compensating any employee with more hours; rather, more hours were CUT and a new expensive fish tank was installed + entire private kitchen remodeling was done (employer has a residence above the business, not a business-related expense), is this OK ??? someone please help as all of us employees are working less than 30 hours a week and none of us have received any bonus, hazard pay, or anything during this entire pandemic!
Jamie - can you help clarify being shut down due to government authority please?
Good morning, depending on your state and the mandates past back then I could be able to tell you exactly. When are you free for a brief call?
Reading the IRS updated guidance I'm noting that if I am eligible for 1st quarter 2021 compared to 1st quarter 2019 then I would also be eligible for 2nd quarter 2021 even if I pass the 80% rule for 2nd quarter 2021. Can anyone confirm? From the IRS guidance:
' Likewise, a qualified time period of 4/1/2021 - 6/30/2021 requires that gross receipts for the first quarter of 2021 significantly declined as compared to the same quarter in 2019. Divide the quarter ended 3/31/2021 by the same quarter in 2019. If the result is less than .8, the second quarter of 2021'
Hi, can Sub-contractors with Schedule C, Form 1099, be qualified for ERC? Thank you.
Only if you have employees on payroll.
Hi! Can a have jn ypur spreadsheet si that I can download? I really need this now for my job😊😊
You can purchase the spreadsheet here: jamietrull.com/ertc
Can anyone send me the worksheet, it's not on her page?
In your ERC example, let's say I qualify for Q3 (17%) but in Q4 I experience 50% decrease in gross receipts again. Can I still take Q4 or it stops at Q3 once gross receipts recover to 80%?
If you're referring to 2020 than yes, if you're referring to 2021 than no.
Recalling... It looks my comments were too long and several lines were removed automatically. Let me try to send the scenario by email, if you don't mind. Thank you again.
I purchased the worksheet but as I am going through each quarter, there is nothing on the worksheet that says each employee has gone over the 10k limit. It only gives a total for year end. So, when I am trying to file say the third quarter and the person goes over the 10k, I find that I am having to add each employees ytd amount to makes sure it is an actual qualified wages.
I assume you mean for 2020, correct? We do that because overall you can pick which quarters to file a 941x for. So we give you the potential amount you would qualify for in that quarter, and note on the worksheet that that maxes out at $10k. This allows flexibility for those who might have paid payroll with a PPP loan in one quarter to pick other quarters to qualify. In 2021 there is not the same per-employee limit so the calculations will tell you the exact amount of the credit.
I’m confused, if my business was shut down by government and I didn’t pay any of my employees in 2020, do I qualify? Thanks
If you didn't pay your employees in 2020, you wouldn't have any qualifying wages to count.
Wa
Jamie,
What can a business claim if they had just started up in 2019 and made much less than what they did in 2020 - even if they shut down? For example, let's say in 2019 Q1 they had 0 in revenue, Q2 5000 Q3 20k Q4 35k then in 2020 they did better even with the shutdown: Q1 40k Q2 30k Q3 85k Q4 105k.
I can't show that they had a qualifying quarter based on the previous year because they were just getting started. I fear they are out of luck for any significant credit.
I feel that all I can qualify them for is what they paid employees during the shutdown. Then again if I don't have a true qualifying quarter, then I cannot claim anything?
Thank you
Let's setup sometime to speak it seems like you would qualify for both 2020 and 2021 under the startup recovery program.
Is the spreadsheet still available?
It sure is, and is fully updated for all the changes to the rules! You can still claim ERTC! jamietrull.com/ertc
How do I by erc spreadsheet?
BUY
You can grab the ERTC Calculator at jamietrull.com/ertc 😊
I used the link for the spreadsheet….but couldn’t find it.
Search your promo and trash folder. It will come from "Balance CFO" or "Jamie Trull". If you can't find it, email us at support@balancecfo.com
Do I qualify if 1 have a part time employeeM
yes its possible that you can if you meet the other requirements.
We did qualify for the ERTC and we had 80% part time employees.
I just purchased the spreadsheet and have not receive it?
Sorry for the delay! If you still haven't received it, please email us at support@balancecfo.com and we'll get it to you right away! It should be automatically delivered and would come from a "Balance CFO" email, so make sure to check your promo and spam folders as well!
Are non-profits eligible?
Yes. I read the guidance yesterday and highlighted that section. We have several as clients so it caught my eye.
Sorry but something is wrong with your sound not good
Thanks for letting me know! It sounds ok on my end :)