Lets talk first about Are Owners Eligible For Employee Retention Credit :
Our team here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly offer a lovely breakfast and have individuals actually find out about the program we need to head to the space where we are able to display a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I suggest you know if you just begin to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I imply consider the number of actual customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you
get this you understand the check is chosen sure which’s when they pay so they do not pay anything until they really get the cash they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their checking account and they can genuinely rely on Wonder trust that the process has been completed and how many you think you have actually processed given that you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you need you need specialists on the other end of the phone to process this and get it to where you get one of these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re speaking about something actually important today the worker retention credit which the majority of you have never ever become aware of I definitely had not become aware of it until very just recently and discovered a lot about it because this is probably the most affordable expense of capital for any small company anywhere
anytime if you have staff members between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply contact your bank manager and state give me a loan it does not work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund fine go on sorry I simply have to ensure we got that point I suggest that’s a huge distinction a loan versus money money I like cash cash that’s what we’re talking about alright and the other loans are done so we’re sitting here in 2023 and the eidl is over the PPP is over and the only one left from the original cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that individual had to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have actually owned an organization but it’s based on you having W-2 staff members in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my favorite part cash just how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s wage to an optimum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the mayhem of the pandemic so they wished to even get more to keep those workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of cash it is now there’s a caution here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge obviously now the huge question is why does no one learn about this since look when I first became aware of this when I first satisfied Josh you understand I’ve got great deals of investments in great deals of business I’m a major advocate for entrepreneurship in America and make lots of lots of investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I do not believe it due to the fact that I use the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them carefully to survive throughout the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my political leader pals Governor Senators they didn’t learn about it I suggest that’s how you know that’s how misinformation is that there’s no details out there then a bunch of people informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody learn about the employee retention credit you know what’s intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process that’s all um and here there was mayhem due to the fact that keep in mind in the initial cares act you could not do both programs so if you had done PPP you might not do ERC in the original program and when they changed the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the government never made it clear to anyone about how to.
do this does your CFO understand how to do this not really he or she’s never done it before do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never done this before unless you have an account that entered into this organization and bottom line my company Kevin has actually been in business considering that 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business clients have worked with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Since of COVID-19 or whose gross receipts, employer whose organization is totally or partially suspended.
decline by more than 50%.
Availability.
1. The credit is offered to all employers regardless of size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether a company had, usually, more or less than.
100 employees in 2019.
Business that focus on ERC filing support usually provide knowledge and assistance to assist companies browse the complex process of claiming the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Are Owners Eligible For Employee Retention Credit
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based on elements such as your market, profits, and operations. They can help identify if you fulfill the requirements for the credit and determine the optimum credit amount you can claim.
Documentation and Estimation: ERC filing services will help in gathering the essential documentation, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit amount based upon eligible salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these companies can examine your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you amend previous income tax return to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the needed forms and paperwork on your behalf. This includes completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have actually developed with time. These companies stay updated with the latest modifications and ensure that your filings abide by the most current guidelines. They can likewise provide ongoing assistance if the internal revenue service demands additional details or performs an audit related to your ERC claim.
It is essential to research study and vet any business offering ERC filing help to ensure their trustworthiness and know-how. Try to find established firms with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who provide ERC filing assistance.
Remember that while these business can offer valuable help, it’s always a great idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate businesses to keep and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit services, tax-exempt organizations, and specific governmental entities. To qualify, employers need to meet one of two requirements:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of qualified incomes paid to workers, including specific health insurance expenses. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they got a PPP loan. However, the same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, allowing eligible companies to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision offers a chance for organizations to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment income tax return, typically Kind 941. The excess can be reimbursed to the company if the credit exceeds the amount of work taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have actually developed gradually. The best strategy is to seek advice from a tax expert or check out the main IRS site for the most detailed and updated info concerning the ERC, including any current legal modifications or updates.
To get approved for the ERC, a company must fulfill one of the following criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and businesses that got a PPP loan may have constraints on declaring the credit.
The process for declaring the ERC involves completing the needed kinds and consisting of the credit on your work tax return (generally Form 941). The exact time it requires to process the credit can differ based on a number of elements, consisting of the complexity of your service and the workload of the IRS. It’s recommended to talk to a tax professional for guidance particular to your scenario.
There are numerous companies that can assist with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some well-known business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these companies straight to inquire about their costs and services.
Please note that the details supplied here is based on basic knowledge and may not reflect the most current updates or modifications to the ERC. It is necessary to seek advice from a tax expert or go to the main internal revenue service site for the most accurate and up-to-date details regarding eligibility, declaring procedures, and readily available help.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on wages paid to all employees whether they in fact worked or not. In other words, even if the.
staff members worked full time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
enabled only for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not simply money payments but likewise a part of the expense of company.
offered health care. Are Owners Eligible For Employee Retention Credit
Payment.
Companies can be immediately repaid for the credit by minimizing the quantity of payroll taxes they.