The Ultimate Guide to ERTC:

A Step-by-Step Handbook for Local Business Owners

This is an invaluable resource for business owners who want to
learn more about Employee Retention Tax Credit.

1. Introduction

* Brief overview of the Employee Retention Tax Credit

* The purpose of the guide and its target audience

2. The Basics of the Employee Retention Tax Credit

* What is the Employee Retention Tax Credit?

* Historical context and the role of the ERTC during the
pandemic
* Key terms and definitions related to the ERTC

3. Understanding Eligibility Criteria

* Employer eligibility requirements

* Qualified wages and eligible employees
* Partial or full suspension of operations due to government
orders
* Significant decline in gross receipts

4. Calculating the Employee Retention Tax Credit

* Step-by-step guide to calculating the ERTC

* Examples of common scenarios
* Limitations on credit amounts and interaction with other
credits

5. Claiming the Employee Retention Tax Credit

* How to claim the ERTC on your tax return

* Amending previous tax returns to claim the ERTC
* Reconciling the ERTC with other payroll tax credits

6. Maintaining Proper Documentation

* Recordkeeping requirements for the ERTC
* Best practices for organizing and storing documents
* Examples of documentation needed to substantiate the credit

7. Navigating Changes to the ERTC

* Overview of legislative updates to the ERTC

* How these changes impact eligibility and credit calculations
* Adapting to new guidelines and requirements

8. Frequently Asked Questions

* Common questions and misconceptions about the ERTC

* Detailed answers and explanations

9. Conclusion

* Summary of the key takeaways from the guide

* The importance of the ERTC for local business owners
* Encouragement to seek professional advice as needed

10. An Effortless Solution

* Almost totally DFY ERTC Application Process

Chapter 1: Introduction
Hello there, fellow entrepreneur!

If you're reading this, chances are you've heard about the

Employee Retention Tax Credit (ERTC) and want to learn more
about how it can benefit your business. Well, you're in the
right place! This comprehensive guide is specifically designed
for local business owners like yourself who may not have
extensive experience with tax laws but still want to take full
advantage of the ERTC.

So, why should you care about the ERTC? In a nutshell, the ERTC
is a refundable tax credit designed to help businesses like
yours keep employees on payroll during the challenging times
brought on by the COVID-19 pandemic. It's a powerful tool that
can potentially save you thousands of dollars in payroll taxes.

But, as you may have already discovered, tax laws and credits
can be incredibly complex and confusing. That's where this
guide comes in. Our goal is to walk you through the entire ERTC
process in a step-by-step, easy-to-understand manner. By the
time you finish reading, you'll have all the knowledge you need
to determine your eligibility, calculate the credit, and
maintain proper documentation.

Here's a quick overview of what you can expect to learn in this

guide:

1. The basics of the Employee Retention Tax Credit, including

key terms and definitions
2. How to determine if your business is eligible for the ERTC
3. The process for calculating the credit and understanding
its limitations
4. How to claim the ERTC on your tax return and potentially
amend previous returns
5. The importance of maintaining proper documentation to
support your ERTC claim
6. Navigating changes to the ERTC and staying up-to-date with
new guidelines

We've designed this guide with you in mind, using a

conversational tone and straightforward language to make the
information as accessible as possible. So, grab a cup of
coffee, find a comfortable spot, and let's dive into the world
of Employee Retention Tax Credit together. Your business's
financial future might just thank you for it!

Now, let's get started by exploring the basics of the ERTC in

Chapter 2.

Chapter 2: The Basics of the Employee Retention Tax

Credit.

Welcome back! Now that we've set the stage with our
introduction, it's time to dive into the nuts and bolts of the
Employee Retention Tax Credit. This chapter will provide a
solid foundation for understanding the ERTC and its key
components. By the end, you'll have a clear grasp of what the
ERTC is and why it matters to local businesses like yours.

So, what exactly is the Employee Retention Tax Credit?

In response to the COVID-19 pandemic, the U.S. Government

enacted the ERTC to help businesses keep their employees on
payroll during these challenging times. It's a refundable tax
credit that allows you to reduce your payroll tax liability by
up to 50% of qualifying wages paid to eligible employees.

To put it simply, the ERTC is like a financial incentive for

keeping your employees on board, even when your business might
be struggling due to the pandemic's effects. Pretty cool,
right?

Now, let's look at some key terms and definitions related to the
ERTC that you should be familiar with:

1. Refundable tax credit: This means that if the ERTC exceeds

your payroll tax liability, you can receive the difference as a
refund from the IRS. In other words, the ERTC can put cash back
in your pocket!

2. Qualifying wages: These are wages and compensation paid to

eligible employees during specific periods of the pandemic. The
definition of qualifying wages can vary depending on your
business's circumstances, which we'll cover in more detail
later.

3. Eligible employees: Generally speaking, these are full-

time employees who worked for your business during the
pandemic. However, there are specific rules and exceptions that
determine which employees qualify for the ERTC, which we'll
also explore in-depth later in the guide.

4. Payroll tax liability: This refers to the taxes you're

responsible for paying as an employer, including Social
Security and Medicare taxes on employee wages. The ERTC
directly reduces this liability, helping you save on payroll
expenses.

Now that we've covered the basics, it's important to remember

that the ERTC is not a one-size-fits-all solution. The rules
and calculations can vary depending on factors like the size of
your business, the number of employees, and the specific time
period in which you're claiming the credit.

But don't worry – we'll guide you through all of that in the
upcoming chapters. So, stay tuned, and let's continue our
journey toward mastering the Employee Retention Tax Credit
together!

In the next chapter, we'll dive into the eligibility criteria

for the ERTC, helping you determine if your business qualifies
for this valuable tax credit.

Chapter 3: Understanding Eligibility Criteria

Welcome back, friend! Now that you have a solid understanding of

the Employee Retention Credit's basics, let's move on to one of
the most crucial aspects of the ERTC process: determining if
your business is eligible for the credit. In this chapter,
we'll break down the eligibility criteria so you can
confidently assess whether you qualify for this financial
lifeline.

First things first, let's talk about the three primary ways a
business can become eligible for the ERTC:

1. Your business experienced a full or partial suspension of

operations due to a government order related to COVID-19.

2. Your business experienced a significant decline in gross

receipts during a calendar quarter.

3. Your business has experienced Supply chain disruptions

that caused delays in goods or services essential to the
operation of your business. This is often overlooked!

Let's dive a bit deeper into each of these eligibility paths.

1. Full or Partial Suspension of Operations.

A full or partial suspension means your business operations

were scaled back or completely halted due to a government
order. Examples of government orders include stay-at-home
mandates, social distancing regulations, or capacity
 restrictions. If your business was directly impacted by such
an order, you could be eligible for the ERTC. It's important
to note that the suspension must be due to a government
order – a voluntary decision to reduce operations doesn't
count for eligibility purposes.

2. Significant Decline in Gross Receipts

A significant decline in gross receipts occurs when your

business's gross receipts for a calendar quarter have dropped
by at least 50% compared to the same quarter in the previous
year. Once your gross receipts recover to 80% of what they were
in the same quarter of the previous year, you're no longer
eligible for the ERTC under this criterion.

3. Supply chain disruptions

If an employer's supply chain has been disrupted due to COVID-19

pandemic, and any Government imposed restrictions and this has
resulted in a significant decline in gross receipts, they may
be eligible for the ERTC. This includes disruptions to the
supply of goods or services that are necessary for the
employer's operations. This is significant.

Now that we've covered the main eligibility criteria, let's

touch on a couple of other factors that come into play:

* Qualified wages and eligible employees: As we mentioned

earlier, the ERTC applies to specific wages paid to eligible
employees. Generally, full-time employees who worked during the
pandemic qualify, but there are specific rules and exceptions
we'll explore later on.

* Size of your business: The number of employees you have

can impact the definition of qualifying wages. For businesses
with more than 3, but fewer than 100 employees (later increased
to 500 or fewer in 2021), all wages paid to employees during
the eligibility period can be considered qualifying wages.
However, for larger businesses, only wages paid to employees
who were not working due to the pandemic are considered
qualifying wages.

* The good news is that there are unlimited numbers of part-

time workers who can qualify. This is great news for hotels,
bars, and restaurants as well as other industries that rely a
lot on part-time workers.

* Unfortunately family members do not usually qualify.

Phew! That's a lot of information to digest, but we're confident

that you're now well-equipped to determine if your business is
eligible for the Employee Retention Credit.

Keep up the great work, and let's continue our journey toward
ERTC mastery!

In the next chapter, we'll dive into the exciting world of

calculating the ERTC, ensuring you have the tools you need to
maximize your credit and save on payroll expenses.

Chapter 4: Calculating the Employee Retention Tax

Credit

Hey there! You've made it to Chapter 4, and we're so proud of

the progress you've made so far. With a firm grasp of the ERTC
basics and eligibility criteria, it's time to tackle the next
big challenge: calculating the Employee Retention Credit.

In this chapter, we'll break down the calculation process step

by step, making it as easy as pie for you to determine the
credit amount you can claim.

Before we dive in, remember that the ERTC is calculated as a

percentage of qualifying wages paid to eligible employees. For
the purposes of this guide, we'll focus on the 50% credit rate
that was in effect for most of 2020. (Later legislation
increased the credit rate, but we'll keep things simple for
now.)

Ready to crunch some numbers? Here's a step-by-step guide to

calculating the Employee Retention Credit:

1. Identify the Eligibility Period: Determine the time frame

in which your business was either fully or partially suspended
due to a government order or experienced a significant decline
in gross receipts.

2. Calculate Qualifying Wages: Identify the wages paid to

eligible employees during the eligibility period. Remember that
the definition of qualifying wages may vary based on your
business size, as we discussed in the previous chapter.

3. Apply the Credit Rate: Multiply the total qualifying wages

by the credit rate (50%) to determine the amount of the ERTC.

4. Factor in Wage Caps: There's a limit on the dollar amount

of wages that can be considered for the credit per employee. In
2020, the cap was set at $10,000 per employee for the entire
year. If any employee's qualifying wages exceed the cap, you'll
need to adjust your calculations accordingly.

Let's look at an example to help illustrate the calculation

process:

Imagine you own a small restaurant with ten employees, and your
business was partially suspended due to a government order for
three months. During this time, you paid each employee $4,000
in wages. Here's how you'd calculate the ERTC:

1. Eligibility Period: 3 months of partial suspension.

2. Qualifying Wages: $4,000 per employee x 10 employees =
$40,000 in total wages.
3. Apply the Credit Rate: $40,000 x 50% = $20,000
ERTC.
4. Factor in Wage Caps: In this case, no employee's wages
exceeded the $10,000 cap, so no adjustments are needed.

Voilà! Your calculated Employee Retention Tax Credit would be

$20,000.

Keep in mind that this is a simplified example, and real-world

scenarios might involve additional factors or complexities.
However, this step-by-step process should give you a solid
starting point for calculating the ERTC for your business.

In the next chapter, we'll explore how to claim the Employee

Retention Credit on your tax return, ensuring you get the
credit you deserve. You're doing an amazing job so far – let's
keep going and conquer the ERTC together!
Chapter 5: Claiming the Employee Retention Tax Credit

Hi there! We're so impressed with how far you've come in your

ERTC journey. You've learned the basics, determined
eligibility, and even calculated the credit amount. Now, it's
time to reap the rewards and claim the Employee Retention Tax
Credit on your tax return. In this chapter, we'll walk you
through the process of claiming the ERTC, ensuring that you can
confidently reduce your payroll tax liability and potentially
receive a refund from the IRS.

Ready to put all that hard work to good use? Let's dive into the
process of claiming the Employee Retention Credit:

1. Reporting the ERTC on Your Tax Return: To claim the ERTC,

you'll need to report the credit on your quarterly federal tax
return, specifically Form 941 (Employer's Quarterly Federal Tax
Return). There's a dedicated line on the form where you can
report the credit, reducing your total payroll tax liability.

2. Reducing Payroll Tax Deposits: If you're anticipating

claiming the ERTC, you can reduce the amount of payroll tax
deposits you make during the quarter. This allows you to keep
more cash in your business right away, rather than waiting for
a refund from the IRS.

3. Requesting an Advance on the ERTC: If the ERTC exceeds

your payroll tax liability, you can request an advance on the
credit by filing Form 7200 (Advance Payment of Employer Credits
Due to COVID-19). This allows you to receive the difference as
a refund, putting cash back in your pocket.

4. Amending Previous Tax Returns: Did you discover that you

were eligible for the ERTC after already filing your tax
returns? No worries! You can still claim the credit by filing
an amended return using Form 941-X (Adjusted Employer's
Quarterly Federal Tax Return or Claim for Refund). This allows
you to retroactively claim the ERTC and potentially receive a
refund for overpaid payroll taxes. Once you file a Form 941-X
you cannot file another one if you discover that you didn’t
claim all your entitlements. Triple-check with us before you
file a Form 941-X just to make sure you don’t lose out big
time.

And that's it! By following these steps, you can claim the
Employee Retention Tax Credit and benefit from the financial
relief it offers. Keep in mind that, as with any tax-related
process, it's essential to maintain accurate records and
documentation to support your claim, which we'll cover in the
next chapter.

You've come a long way, and the finish line is in sight. Keep up
the fantastic work – you're almost there!

In the upcoming chapters, we'll cover maintaining proper

documentation and navigating changes to the ERTC, ensuring that
you're fully prepared to take advantage of this valuable tax
credit.

Chapter 6: Maintaining Proper Documentation

Hey there, ERTC champion! You're doing an amazing job navigating

the world of Employee Retention Credit. Now that you've learned
how to claim credit, it's essential to ensure you have proper
documentation in place to support your claim. In this chapter,
we'll discuss the types of records you should maintain and why
they're crucial to the ERTC process.

Having proper documentation is like having an insurance policy

for your ERTC claim. It helps you verify your eligibility,
demonstrate compliance with the rules, and defend your claim in
case of an audit. So, what exactly do you need to keep on file?

Let's take a look:

1. Payroll Records: Maintain detailed payroll records for all

eligible employees, including wage amounts, hours worked, and
any paid leave. These records will help you substantiate the
qualifying wages used in your ERTC calculations.

2. Government Orders: Keep copies of any government orders

that led to the full or partial suspension of your business
operations. These documents provide evidence that your business
was directly impacted by the pandemic, supporting your
eligibility for the credit.

3. Gross Receipts: Retain records of your gross receipts for

each calendar quarter, demonstrating the decline in revenue
that qualifies you for the ERTC. This documentation may include
sales reports, invoices, or financial statements.

4. Business Size: Keep records that establish your business

size, such as employee headcounts or payroll reports. Remember
that the number of employees you have can impact the definition
of qualifying wages, so it's essential to have this information
readily available.

5. ERTC Calculations: Document the process you used to

calculate the Employee Retention Credit, including the
eligibility period, qualifying wages, and credit rate. This
information will be helpful if you ever need to explain or
defend your calculations.

6. Tax Forms: Lastly, keep copies of any tax forms related to

your ERTC claim, such as Form 941, Form 7200, or Form 941-X.
These forms serve as an official record of your claim and any
amendments you may have filed.

By maintaining these records, you'll be well-prepared in case

the IRS ever questions your ERTC claim. It's always better to
be safe than sorry, especially when it comes to taxes!

You're doing a fantastic job mastering the Employee Retention

Credit, and we're almost at the finish line. Keep up the
excellent work – the end is in sight!

In the next chapter, we'll cover navigating changes to the ERTC

and staying up-to-date with new guidelines, ensuring that
you're always in the know when it comes to this valuable tax
credit.

Chapter 7: Navigating Changes to the ERTC

Hello again, ERTC expert! You've made incredible progress so

far, and we're delighted to have you here for the final chapter
of our journey. The Employee Retention Tax Credit has evolved
since its inception, with legislative changes and updates along
the way. In this chapter, we'll discuss how to stay informed
about these changes and adapt your ERTC strategy accordingly.

Tax laws can be a moving target, so it's essential to stay on

top of any updates that could impact your eligibility or credit
amount. Here are some tips for navigating changes to the ERTC:

1. Follow IRS Announcements: The IRS is the primary source of

information when it comes to tax-related updates. Keep an eye
on the IRS website and subscribe to their e-newsletter to
receive announcements about any changes to the ERTC or other
relevant tax credits.

2. Consult Professional Advice: Tax professionals, such as

accountants or tax attorneys, can be invaluable resources when
it comes to staying informed about changes to tax laws. They
can help you interpret new regulations, assess their impact on
your business, and adjust your ERTC strategy as needed.

3. Participate in Industry Groups: Joining industry

associations or networking groups can be a great way to stay in
the loop about changes to tax laws that could affect your
business. These groups often share information about new
legislation and provide resources to help members navigate any
changes.

4. Monitor Legislative Updates: Keep an eye on federal and

state legislative updates related to COVID-19 relief measures.
By monitoring the news and staying informed about proposed
changes, you'll be better prepared to adapt your ERTC strategy
if and when new regulations are enacted.

5. Reevaluate Your ERTC Eligibility: As new guidance or rules

emerge, take the time to reevaluate your ERTC eligibility and
credit amount. This may involve revisiting your calculations,
reassessing your eligibility period, or updating your payroll
records to ensure they align with any new requirements.

6. Adapt Your Record-Keeping Practices: Changes to the ERTC

may require you to maintain additional documentation or update
your existing records. Stay informed about any new record-
keeping requirements and adjust your practices accordingly.
By staying proactive and informed, you'll be well-equipped to
navigate any changes to the Employee Retention Tax Credit and
ensure your business continues to benefit from this valuable
tax relief measure.

Congratulations on making it to the end of our ERTC journey!

You've become a true expert in the Employee Retention Credit,
and we're confident that you're ready to tackle this tax credit
head-on. Remember to stay informed, maintain proper
documentation, and consult professional advice when needed.
With these tools in your arsenal, you're well on your way to
maximizing the benefits of the ERTC for your business. Best of
luck, and here's to your continued success!

Chapter 8: Frequently Asked Questions

Hello again, ERTC superstar! By now, you've gained a wealth of

knowledge about Employee Retention Credit. However, we
understand that you might still have some questions or
concerns. In this bonus chapter, we'll address some frequently
asked questions about the ERTC to help clarify any lingering
doubts. Let's dive in!

1. Q: Can I claim the ERTC if I also received a Paycheck

Protection Program (PPP) loan?

A: Yes, you can claim the ERTC even if you received a PPP
loan. However, you cannot use the same wages for both the ERTC
and PPP loan forgiveness. It's essential to carefully track and
allocate wages for each program separately to avoid any double-
dipping.

2. Q: Can I claim the ERTC for wages paid to family members who
work for my business?

A: Generally, wages paid to certain related individuals

(e.g., children, spouses, or siblings) are not eligible for the
ERTC. There are specific rules regarding family members, so
it's a good idea to consult a tax professional to determine the
eligibility of wages paid to relatives.

3. Q: How long do I need to keep records related to the ERTC?

 A: It's recommended to keep your ERTC records for at least
four years from the date you filed your tax return. This
timeframe aligns with the IRS's general record retention
guidelines and ensures you have the necessary documentation if
you ever face an audit or need to reference the information in
the future.

4. Q: Are part-time employees eligible for the ERTC?

A: Yes, part-time employees are eligible for the ERTC, and

their wages can be included in your calculations. Remember to
follow the same eligibility criteria and wage limitations as
you would for full-time employees.

5. Q: Can I claim the ERTC if I didn't experience a government-

mandated shutdown but still saw a decline in revenue?

A: Absolutely! If your business experienced a significant

decline in gross receipts (usually a 50% reduction compared to
the same quarter in the previous year), you may still qualify
for the ERTC, even if you were not directly impacted by a
government order.

We hope these FAQs have addressed any lingering questions or

concerns you may have about the Employee Retention Credit.

Remember, the information provided in this guide is meant to

serve as a starting point, and it's always a good idea to
consult a tax professional for personalized advice.

Congratulations on completing this guide and becoming well-

versed in the world of the ERTC! With your newfound knowledge,
you're well-equipped to take advantage of this valuable tax
credit and support your business during these challenging
times. Best of luck, and we wish you continued success!

Chapter 9: Conclusion

And there you have it, our ERTC hero! You've made it through
this comprehensive guide, and we couldn't be prouder of your
dedication and progress. You've tackled the basics of the
Employee Retention Credit, navigated eligibility criteria,
mastered calculations, claimed the credit, maintained proper
documentation, and adapted to changes like a true champion.
Now, you're well-equipped to maximize the benefits of the ERTC
and help your business thrive during these challenging times.

Throughout this journey, we've aimed to make the complex world

of Employee Retention Tax Credit more approachable and
understandable. As a local business owner, you're the backbone
of our community, and it's our honor to support you in any way
we can.

Remember, even though you've now become an ERTC expert, it's

crucial to stay up-to-date with any changes or updates to tax
laws and regulations. Don't hesitate to consult tax
professionals or seek guidance from reliable sources whenever
necessary. You're not in this alone, and there's a whole
community of experts and fellow business owners who are more
than willing to help.

In conclusion, we want to express our gratitude for your hard

work and commitment to learning about the Employee Retention
Credit. We believe that, armed with this knowledge, you're
better prepared to face the challenges that lie ahead and
continue to lead your business to success. We're rooting for
you, and we have no doubt that you'll make the most of the ERTC
to support your employees and strengthen your business.

Chapter 10: An Effortless Solution

After perusing "The Ultimate Guide to ERTC: A Step-by-Step

Handbook for Local Business Owners," you may now understand
just how much effort goes into an ERTC application, even for a
qualified CPA. But don't worry, we've got an effortless
solution for you!

Simply answer two simple questions and fill out your contact
information HERE, and one of our skilled ERTC CPAs will give
you a call to determine your eligibility for a rebate.

Once we confirm your eligibility, our team of highly experienced

CPAs will take care of the entire application process for you.
You'll be asked to sign a customer service agreement and
provide some essential documents. We'll keep you informed every
step of the way. And to ensure your application is error-free,
it will be reviewed not once, not twice, but THREE times by our
CPAs.

Through the thousands of ERTC claims that have been processed we

can show that we have achieved between 40% to 140% more for our
clients than even the largest accounting firms can claim.

We DO NOT ask for any payment upfront. Once you sign a customer
service agreement our expert ERTC CPAs work on your behalf
until a credit has been agreed upon. Then we will offer you
three payment options.

1. With no upfront payment then you’ll pay the full commission,

leveed at 30% of the credit arranged. (Our fees are cheaper
than most ERTC agencies or CPAs!)
2. A small upfront payment allows for a 5% reduction in fees.
3. Fee payment in full allows for a 12% reduction in fees.

Depending upon the time that you take in providing the requested
documents and the payment plan agreed upon affects the time
taken to process your claim. Be prompt in returning documents
etc., for a faster result, but this process often takes at
least 4 weeks

After all, who wants to be on the wrong side of the IRS, right?
So, take the easy route with our hands-off ERTC application
process:

1. Answer two straightforward questions and provide your contact

details.
2. Chat with an expert ERTC CPA to determine if you qualify for
a rebate.
3. Sign a Customer Service Agreement.
4. Submit the necessary documents promptly.
5. Once a credit has been negotiated and agreed only then will
we discuss payment options.
6. Once payment has been received you’ll receive a check from
the IRS.

Thank you for joining us on this journey, and we wish you all
the best in your future endeavors. Keep shining, and remember
that your determination and resilience make all the difference.
Here's to your continued success and the growth of your
business!

David James

Website: https://easiest-ertc.com
Website: https://easiestertc.com
Email: mailto:David.james@easiest-ertc.com
Start Your Claim: https://www.easiest-ERTC.com/ertc