Mark Kohler explains how small business owners can claim the Employee Retention Tax Credit, a refundable tax credit separate from PPP loans. You file an amended payroll return (Form 941-X) for 2020 credits or request an advance on 2021 credits through the IRS.
Chapters
Oh, this is good. Hector says, where do I go to apply for the ertc? Do I go back to my bank? Oh, no, everybody, this is so important. The PPP is a loan that you got at a bank last year, right? You went to a bank to get your loan. You could go back to the same bank if you want or go to a new bank for the next round of ppp. Do not care. And let's just throw out a curve ball here. The Eidl. Remember the Eidl Grant? That was $1,000 per employee up to 10,000, which is now free grant money. You don't have to claim it or anything. Automatically forgiven. Done. The Eidl grant. You applied to the SBA to get that. Remember you went to the SBA website. So I went to the SBA website for the Eidl. I went to a bank for my PPP. How do you get the ERTC? Well, if you're going back to 2020 to get it, you're going to file a 941X. You're going to file an amended payroll report. That's what you do. And I've got. It's in my article. You're gonna go back and file an amended payroll return. And for the quarter that you're claiming the credit and they're gonna send you a check. You just get a check in the mail. Done. If you're applying for 2021, you actually have two options. You can wait to claim the credit when you file your 941. Isn't this crazy? There's so much here you can go and file. I'm going to put that as number two. When you file your 941, you claim the credit and you might get it refunded if you. Because you already paid in, or you might get some money back. I don't know. But you're going to file for the night on your 941 at the end of the quarter. Now remember, everybody, when you're dealing with this in 2021, you got first quarter and second quarter. When do you file your payroll report for first quarter? Well, this is January, February, March, you will you Send in your 941 in April. That 941 is where you'll claim the ERTC second quarter. You're going to do that because you got January, February, March, April, May, June. You're going to apply in July for the 941 and get the ERTC then. Okay, that's if you go with just the file in the 941, you can actually get an advance on the credit. So you can apply for an advance now. The form number, I don't remember right now. It's in my article. But you can apply for an advance, and the form is on the IRS website, and I give you the link. So you could apply for an advance. That's free money, too. This is free money, people. I'm glad you're listening. You're in the know. Please share this with another business owner. You know, so you can go get the ertc. But you do it, Hector, by doing it on your IRS forms. I'm going to even put this in red just so we can get this out here, so everybody can see this. So you're going to use an irs. What the. Okay, slow down. That got jacked up. Oh, that's what I changed. Okay, so you're going to do it here on an IRS form for your ertc. You're going to do the PPP at your bank, and if you want a loan from the sba, you go to the SBA website for an economic injury disaster loan, which is not free money. You're gonna pay that back. All right? Okay.
