it turns out there's a remaining option that can be
bigger than the $10,000 EIDL,
bigger than the $20,000 PPP,
and you don't even need to request forgiveness.
I'm talking about the ERC.
The ERC was a massive flop of
a stimulus program, only with a small
percentage of businesses actually getting funded.
At first, it was just way too complicated to
apply and it got no attention from the media,
but it since got far more accessible over time.
And that's why I felt the need to make this video.
So you don't miss out on essentially free money.
And if you're wondering why I'm talking about this,
let me share a quick story.
For about a year, it was my life's mission
to ensure every small business got the funding that
they were entitled to through stimulus program.
You're not going to believe this, but I actually made
I'm telling you, I was addicted to this.
I was even honored to have Bill Briggs,
the head of the entire Paycheck Protection program at the
SBA on my channel the day the program launched.
So it only feels right to do a video to
chat about a massive opportunity that's still out there.
I applied for the ERC for my moving
business during the pandemic and received $29,235.
So let's discuss how this works, who is eligible,
and what you need to do to apply.
Also, if you're not a business owner, I'll
have something else at the end of this
video that you can take advantage of to
make some additional money with this program.
So how does the ERC work?
Essentially, this program pays you for having employees
between January 1, 2020 and September 30, 2021
as a kind of thanks for keeping employees
on payroll during the pandemic.
And it's important to note that if you received a
PPP loan, this does not prevent you from applying.
Instead, weeks covered by your PPP loan
are simply deducted from your ERC calculations.
Now, what's crazy about this program is you can
actually receive up to $26,000 per employee.
Let me explain how the math works.
For 2020, remember this is retroactive,
eligible businesses can receive up to 50%
of gross wages paid to employees.
They can receive that back as a credit
capped at $10,000 in wages per employee.
So let's do an example.
Suzy is your employee.
You paid Suzy $8,000 in 2020.
To calculate the credit, you'd simply take $8,000 times
50%, which would result in a credit of $4,000.
Now let's say you paid Suzy $50,000 in 2020.
You would take $10,000 of that,
the maximum amount per employee, multiply that
by 50%, which results in $5,000 deposited
into your account for this credit.
Now, 2021 is where things get
really crazy for this program.
For 2021, eligible employers can
receive 70% of eligible wages.
And even better, wages are capped at $10,000
per quarter per employee for Q1, Q2, and Q3.
The program stops after Q3 2021.
So let's say you paid Suzy
$15,000 per quarter in 2021.
You would take $10,000 of those wages each quarter
multiplied by 70%, which is $7,000 per quarter.
Which means you can get $21,000
up to $21,000 for Suzy's wages for 2021.
And you can do this for every W2 employee.
It's pretty amazing.
You're not going to believe this, but the average
total credit size is actually over $200,000 per business,
deposited straight into that business bank account.
The details are all written on the
tax code directly on the IRS website.
Now, there are three eligibility requirements
that we have to discuss.
First, your business must have at least one
W2 employee and fewer than 500 employees.
Most people have fewer than 500 employees.
Now, unfortunately, your own
employment wages don't count.
And second, you have to have been
in business since February 15, 2020.
And third, you need to be able to certify either a revenue
reduction or that your business was impacted by the pandemic.
The most straightforward way here
is the revenue reduction route.
So for 2021, the requirement is quarterly
revenue reduction of 20% or more when
compared to the same quarters in 2019.
So you'd be comparing like Q1 to Q1.
For 2020, the requirement is a quarterly
revenue reduction of 50% or more when
compared to the same quarters in 2019.
So for both 2020 and 2021, you're
comparing to 2019 before the pandemic.
However, if you don't hit the revenue reduction
criteria, you can still use the alternate method.
If your business was impacted from the
pandemic in any way, including delays in
supply chain, changed hours, lowered capacity, canceled
meetings, or any disruption, you are eligible
for this without showing that revenue reduction.
And this is all in the fine print.
And the good news is, this means
And at this point, you might be wondering,
why is this program not more popular?
Or why haven't I heard of this before?
And let me explain the issue here.
Most CPAs are not helping businesses apply.
This isn't anything wrong with CPAs because this
program falls in this weird no man's land.
Typically, businesses will use
third party payroll services.
So it's actually up to your payroll provider to
file the required forms to get you this payment.
This actually happened to me.
I reached out to my accountant personally to see if he
would submit the ERC paperwork for me, and he wouldn't.
And after talking to many other business owners,
I found that this is very common.
Now, it's worth reaching out to your accountant and payroll
provider to see if they can do this for you.
If so, that's awesome.
You're one of the lucky few if not,
I found a service that will do this for you.
They'll do all the paperwork for you
and I actually had a great experience with them personally.
That's really important.
In fact, they have this really handy tool that
tells you if your company is eligible and how
much you can receive from the ERC.
I recommend checking out this tool whether
you plan on using them or not.
That way you can do it and then decide
whether this credit is worth pursuing for you.
In order to use the calculator, you can click the
link in the description and then click 'Begin Qualifying'.
From there, it will ask you some basic
questions, then a bit to certify your revenue
reduction or negative impacts from the pandemic and
how many employees that you have from here.
After filling everything out, it will show you
how much you can receive from this program.
I inputted five employees and you can
see the massive results.
From here there are a few documents that you will
need to upload no matter how you apply.
If you end up using the service, you
can connect directly to your payroll provider and
they'll grab all the documents for you.
Or you can do it manually.
If you do it manually, you'll
need two types of documents.
First, you'll need all Quarterly 941 Payroll Reports
from Q1 2020 to Q3 2021.
So seven total reports.
Your payroll processor will have these reports.
And then second, this one is really important.
You'll need a detailed payroll report for
03-13-2020 to 09-30-2021.
This is a report that outlines payments, deductions,
contributions and taxes for each paycheck for every
employee in that entire time period.
Again, your payroll processor will have this.
Just make sure the report includes all
payments, deductions, contributions and taxes for all
employees broken down by check.
Otherwise you might have issues later.
And there you have it.
Now there are some important points that
I need to make before you go.
First, this credit is not taxable.
However, you must reduce deductible wage expenses
by the amount of the credit.
So let's say you have payroll costs of
$50,000 and you get a $10,000 ERC credit.
You will only be able to write off
$40,000 of your payroll expenses against your taxes.
This is a rule so you can't double dip on your taxes.
But of course, getting this credit
is still a massive benefit.
Now second, this credit takes a while to get.
The minimum time right now is 16 weeks
due to IRS processing times.
So if you're interested, I highly recommend getting started
today as the program is getting more popular and
you don't want to have to wait way longer
than 16 weeks if it fills up even more.
So go out there and get
the money that you're eligible for.
Now, as promised
The company that processes ERCs
has an affiliate program.
Now typically,
But I was able to negotiate with them
and get this opened up to my subscribers.
This means not only can you help out your
business owner friends and family,
So you help them and you help yourself.
This means if the average business's ERC is $200,000 you
can make $4,000 as a nice little side hustle for
helping out a friend, it's crazy and the best part
is I've done all the work for you.
You can just take this video and show it
to your business owner friends and you don't even
have to explain what the program is or how
it works or what is needed to apply.
So there you have it. You know what to do next.
If you have a business go and get your money
and if you don't have a business sign up and
help out a friend and that's going to do it.
I would like thank you so much for watching
and I hope you have a profitable day!