A highlight from The Employee Retention Tax Credit Whisperer
Thousand dollars for employee for ten thousand dollars paid in wages. I haven't seen a restaurant or a bar that hasn't qualified and anybody that was shut down and saw a reduction and revenue at least check it out. Hey everybody welcome to the show today. We're talking about a top but not many people understand employee retention tax credit. But they goodness this lady does ms tricia pettis chief operating officer of payroll bolt corporate pyro about franchising in denver colorado. Hey i'm karen. I'm a former. Cpa entrepreneur business consultant with big ideas. Welcome to tears to business trish. Thank you for being on the show problem. Thank you for having me. Well the reason that i asked you to be on the show today was because this things come out and it's called a rtc because everything's initials and so employ retention tax credit. I don't think anybody really knows about this. But you guys have studied it immensely. You know we have. We were studying it last year when it came out because we saw value in educating our clients potentially about it however because so many people received the ppp loan at the time last year her. It didn't seem like anybody would take advantage of it because they preferred the ppp one. However at the end of last year the government came out and said you know if you got the ppp loan you can also take advantage of the employee retention tax credits so you can have both which is really exciting. So what we have done is taken that education in brought it forward and are now talking to all of our clients and our communities about taking advantage of this credit. What is it what is it for so it is for businesses. Who in twenty twenty if they're under a hundred employees and if they were closed are partially closed and partially closed even includes a reduction in business. And let me give you an example if you have a restaurant who also say did some catering in the restaurant of course was closed. Maybe even partially closed and then depending on where they were say the restaurant could open but they still couldn't do their catering business because you couldn't host parties with a lot of people together right so that is still considered as not at one hundred percent of business because they're still prevented the government order from operating in the way that they originally were operating. And then the second qualification in this is an or not an and so if they were closed or partially closed or if they had reduced receipts over fifty percent so fifty percent reduced gross revenue in a quarter in two thousand twenty compared to the same quarter in two thousand nineteen they could also qualified and once they qualify that fifty percent. They're qualified for every quarter following until they get up over eighty percent of gross receipts compared to in quarter the prior year. So if it went down on usually the second quarter was when the big hit was right. Because we're going into storrow naple said the second quarter you more than fifty percent. So let's say fourth quarter you found a way to pivot your business novice sudden. You're making money. You don't get it for that fourth quarter if you're up to eighty percent if it took you until the fourth quarter so say you're an october fifteenth right so you had reduced receipt second third quarter than fourth quarter. Is that quarter that you went up. You still qualify for that fourth quarter because the fourth quarter is the first quarter that you got over the eighty percent so if you had scenario second third fourth quarter qualify i. Let's just say in third quarter. Business starts booming so many people reinvented their business and found a way to take it out. Say take advantage. But just be smart about their business and an income if you got back to eighty percent of what you previously had. Then fourth quarter wouldn't qualify. Okay i got that part so if you were talking to someone that doesn't know anything about an pretend that's me because kennedy in are trying to figure this out. We're not. we're actually meeting this afternoon to look at some companies. And what is it in a nutshell. What what are we doing. What are we. What's the goal here. The goal is to get the refund of the credit. That should have come to them. Twenty twenty four them today so because of this change you guys can go backwards into twenty twenty and look at your clients. Customers can clients can look at their own books in nc when they were closed when they had reduced receipts and in the times that they're eligible they can receive a credit of up to five thousand dollars for employee for ten thousand dollars paid in wages so if an employee had made ten thousand dollars in wages in that qualifying quarter or that qualifying time in twenty twenty.