AI Summary
→ WHAT IT COVERS Josh Zieglowsky explains the Employee Retention Credit program, a COVID relief fund providing up to $26,000 per W-2 employee to qualifying businesses. He details eligibility requirements, application processes, and how his company has recovered over $1.8 billion for 9,000 businesses nationwide. → KEY INSIGHTS - **Qualification Criteria:** Businesses with 500 or fewer employees qualify through three pathways: 20% revenue loss, full or partial shutdown, or supply chain disruption. The supply chain disruption amendment opened eligibility to approximately 80% of businesses, including unexpected cases like law firms citing courthouse closures as supply chain issues. - **Credit Structure:** The program offers $5,000 per employee for 2020 and $21,000 per employee for 2021, totaling up to $26,000 per W-2employee. Unlike PPP loans, this is a refundable tax credit requiring no repayment and no restrictions on fund usage, processed through amended 941-X payroll tax forms within six to eight months. - **Professional Gap:** Most CPAs and payroll companies do not inform clients about ERC because 90% of tax professionals handle only 1040 and 1120 forms, not payroll credits. Payroll companies typically do not amend 941 forms. Businesses must proactively seek specialized ERC providers who work on contingency, charging 15% only upon successful credit approval. - **Business Impact Range:** The program serves businesses from one employee to 499 employees. Examples include a food prep company receiving $40,000 with four employees, a pizza chain obtaining $400,000 to fund two new locations, and a Baptist church recovering over $3 million, demonstrating scalability across organization sizes and types including nonprofits. → NOTABLE MOMENT Josh reveals he discovered ERC while seeking stimulus for his Wyoming oil business after crude prices dropped to negative $30 per barrel in 2020. Despite consulting tax professionals and payroll companies, none could help him access this program, leading him to research independently and eventually pivot his career focus. 💼 SPONSORS [{"name": "HighLevel", "url": "highlevelfire.com"}, {"name": "Thrive Time Show", "url": "thrivetimeshow.com/eofire"}] 🏷️ Employee Retention Credit, COVID Relief Programs, Small Business Tax Credits, Payroll Tax Refunds