Employee Retention Credit
icon July 07, 2021
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ERC 2021 – Employee Retention Credit 2021 for Second Quarter 2021 Payroll

 

Don’t miss out on up to $7000 Employee Retention Credit from the IRS from your Second Quarter Payroll and get additional financial help during this Covid-19 pandemic.

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DISCLAIMER

This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.

Transcription

Now that the second quarter of 2021 is over make sure you take advantage of additional financial help for your business where you could get up to $7000 per employee towards your business so that’s what we’re going to talk about in this video hello from freedom tax accounting we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years. If you’re new to this channel we provide strategies for small business owners, so they can achieve their financial goals. And in this video, we’re going to talk about how your business can get up to seven thousand dollars per employee for their second quarter 2021 payroll.

If you have no idea what I’m talking about um there is a financial help program from the IRS not the SBA. So, this is not PPP. This is not the SBA EIDL loan. This is financial help coming directly from the IRS and it is called the employee retention tax credit. It is a payroll tax credit that you get from the IRS.

Now, who is eligible to get this tax credit? You must be a business that has employees on payroll meaning that you’re you are withholding payroll taxes from your employees that at the end of the year you give them a w-2 so 1099 contractors, so if you pay someone as a contractor and you give them 1099 at the end of the year you are not eligible uh for this employee retention tax credit you must have employees on the payroll. If you’re a self-employed independent contractor and you don’t have employees on payroll then you are not eligible for this credit.

Now if you are eligible for this credit, you must meet one criterion and it is that you must check that your second quarter 2021 gross revenue your sales in the second quarter of 2021 is at least 20% less than the second-quarter sales in 2019. So, you don’t compare with 2020. So, take a look at your second quarter 2021 sales. If it’s 20 or more in a reduction in revenue compared to the second quarter of 2019, then your business may be eligible to get this tax credit which is 50% of qualified wages- sorry it is 70% of qualified wages paid to employees in the second quarter up to $10,000. So, 70% of $10,000 means that you can get up to $7000 as a payroll tax credit from the IRS per employee okay. And we have been able to help a lot of our payroll uh accounting clients to get a lot of money from the IRS.

Okay now, how do you receive these funds? Now once you apply you will get these funds in either two ways. Let me show you. The IRS is either going to send you a check, let me show you this is one of the checks that one of our clients received as you can see our client got $51,944 as the employer tax credit okay. Now, this does take some time because for example in this particular case we applied for the first quarter of sorry for 2020. So, we sent out this application in February and our client got this check-in in May. So, it took a couple of months but he got a check from the IRS for almost $52,000. Now you can get a check from the IRS or you’re going to get a letter from the IRS saying that the credit is going to be you’re going to get a credit on your next payroll taxes. Okay for example in this client we got he got credit for almost $9 000. So, you’re either going to get a check from the IRS or you’re going to get a letter that that amount is going to be a credit for your next payroll tax report okay.

Now make sure that you contact our office to make sure that you’re eligible for the employee retention tax credit. Remember that if you haven’t received this credit you can apply retroactively all the way back to 2020. So, you can get employee retention tax credit for 2020 you can get the employee retention tax credit for the first quarter over, you can apply for the employee retention credit for the second quarter of 2021. This is our contact information. Please schedule a consultation where we will evaluate your case and see how much employee retention tax credit your business is eligible for okay.

Now remember that we are also part of Freedom Group where we can help you not only with tax accounting, we also have an immigration department, a real estate department, and insurance and financial planning as well. So, we can help you in many ways. So, thank you for watching this video. God bless you. Remember that we are praying for you, praying for your family, and praying for your business. If you have received value out of this video, please like this video, share it with other business owners, and remember to subscribe to our channel. Thank you for watching and God bless you, bye.

Transcript:

Now that the second quarter of 2021 is over make sure you take advantage of additional financial help for your business where you could get up to $7000 per employee towards your business so that’s what we’re going to talk about in this video hello from freedom tax accounting we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years. If you’re new to this channel we provide strategies for small business owners, so they can achieve their financial goals. And in this video, we’re going to talk about how your business can get up to seven thousand dollars per employee for their second quarter 2021 payroll.  

 

If you have no idea what I’m talking about um there is a financial help program from the IRS not the SBA. So, this is not PPP. This is not the SBA EIDL loan. This is financial help coming directly from the IRS and it is called the employee retention tax credit. It is a payroll tax credit that you get from the IRS.  

 

Now who is eligible to get this tax credit? You must be a business that has employee on payroll meaning that you’re you are withholding payroll taxes from your employees that at the end of the year you give them a w-2 so 1099 contractors, so if you pay someone as a contractor and you give them a 1099 at the end of the year you are not eligible uh for this employee retention tax credit you must have employees on payroll. If you’re self-employed independent contractor and you don’t have employees on payroll then you are not eligible for this credit.  

 

Now if you are eligible for this credit, you must meet one criterion and it is that you must check that your second quarter 2021 gross revenue your sales in second quarter of 2021 is at least 20% less than the second quarter sales in 2019. So, you don’t compare with 2020. So, take a look at your second quarter 2021 sales. If it’s 20 or more in reduction in revenue compared to the second quarter of 2019, then your business may be eligible to get this tax credit which is 50% of qualified wages- sorry it is 70% of qualified wages paid to employees in the second quarter up to $10,000. So, 70% of $10,000 means that you can get up to $7000 as a payroll tax credit from the IRS per employee okay. And we have been able to help a lot of our payroll uh accounting clients to get a lot of money from the IRS.  

 

Okay now how do you receive these funds? Now once you apply you will get these funds in either two ways. Let me show you. The IRS is either going to send you a check, let me show you this is one of the checks that one of our clients received as you can see our client got $51,944 as the employer tax credit okay. Now this does take some time because for example in this particular case we applied for the first quarter of sorry for 2020. So, we sent out this application in February and our client got this check in May. So, it took a couple of months but he got a check from the IRS for almost $52,000. Now you can get a check from the IRS or you’re going to get a letter from the IRS saying that the credit is going to be you’re going to get a credit on your next payroll taxes. Okay for example in this client we got he got a credit for almost $9 000. So, you’re either going to get a check from the IRS or you’re going to get a letter that that amount is going to be a credit for your next payroll tax report okay. 

 

Now make sure that you contact our office to make sure that you’re eligible for the employee retention tax credit. Remember that if you haven’t received this credit you can apply retroactive all the way back to 2020. So, you can get employee retention tax credit for 2020 you can get the employee retention tax credit for the first quarter over, you can apply for the employee retention credit for second quarter 2021. This is our contact information. Please schedule a consultation where we will evaluate your case and see how much employee retention tax credit your business is eligible for okay.  

 

Now remember that we are also part of Freedom Group where we can help you not only with tax accounting, we also have an immigration department, a real estate department and insurance and financial planning as well. So, we can help you in many ways. So, thank you for watching this video. God bless you. Remember that we are praying for you, praying for your family and praying for your business. If you have received value out of this video, please like this video, share it with other business owners and remember to subscribe to our channel. Thank you for watching and god bless you, bye. 

Thanks for watching this video. Remember to subscribe to our channel and share it with your relatives and friends if this informative video was of benefit to you.

You can contact us by phone, email, or by visiting our offices:

Remember that we are part of Freedom Group, a conglomerate of companies dedicated to providing quality services in accounting, taxes, financial consulting, insurance, real estate, business incorporation, among others.

As for your finances, we can help you with everything you need.


#erc2021 #ertc2021 #employeeretentioncredit #erc #ertc

 

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