Lets talk first about Bdo Employee Retention Credit :
Our team here what do these men doing everyone in this space is helping teach individuals about ERC and uh always offer a lovely breakfast and have individuals actually learn about the program we should head to the space where we have the ability to display a few of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I mean you understand if you just start to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I suggest think about the number of real clients that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you know when you
get this you understand the check is opted for sure which’s when they pay so they don’t pay anything up until they really receive the cash they do not pay bottom line Wonder trust anything till this letter is validated the check is on the method they deposit it into their checking account and they can truly trust Wonder trust that the procedure has actually been completed and the number of you believe you’ve processed because you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you need you need experts 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 Wonderful here you’re at my YouTube channel we’re speaking about something actually important today the employee retention credit which most of you have never become aware of I certainly had not heard of it until really just recently and found out a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just contact your bank supervisor 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 us all about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a big distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund all right go on sorry I simply have to make certain we got that point I mean that’s a huge distinction a loan versus money cash I like cash cash that’s what we’re discussing all right 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 initial cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get actual cash from the IRS all right so let’s speak about how it works since it sounds like to me if it’s a if it’s employee retention credit that person needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have actually owned an organization however it’s based upon you having W-2 staff members in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible 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 correct so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s salary to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to an optimum of 7 thousand per quarter how did that occur um they simply changed the rules in.
2021 versus because the chaos of the pandemic so they wanted 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 approximately 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big certainly now the big question is why does nobody understand about this because appearance when I initially became aware of this when I first satisfied Josh you understand I have actually got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous many investments in business owners of which lots of suffered through the pandemic when I first became aware of this I called BS I do not think it since I utilize the PPP we went through the cash center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans and that were well should have and we used them wisely to survive during the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even contacted us to my politician good friends Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how misinformation is that there’s no details out there then a bunch of people told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s fascinating you’re talking about the banks Kevin since in the PPP loan process the federal government made it extremely clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was chaos due to the fact that keep in mind in the original cares act you might not do both programs so if you had done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not really he or she’s never done it before do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accountant’s never done this before unless you have an account that entered into this business and bottom line my firm Kevin has been in business given that 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have worked with bottom line to recuperate other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, company whose business is totally or partially suspended.
decline by more than 50%.
1. The credit is offered to all employers despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The definition of certifying earnings varies by whether an employer had, typically, more or less than.
100 workers in 2019.
Business that specialize in ERC filing assistance typically offer proficiency and support to help organizations navigate the complicated process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Bdo Employee Retention Credit
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based upon aspects such as your market, revenue, and operations. If you satisfy the requirements for the credit and determine the optimum credit quantity you can declare, they can help determine.
Documents and Calculation: ERC filing services will assist in gathering the needed paperwork, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit quantity based on qualified salaries and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can examine your past payroll records and financials to recognize possible opportunities for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and send the needed kinds and documentation on your behalf. This includes finishing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have developed with time. These business stay updated with the current changes and make sure that your filings adhere to the most existing guidelines. They can also offer continuous assistance if the internal revenue service requests extra information or conducts an audit related to your ERC claim.
It’s important to research and vet any business using ERC filing support to guarantee their trustworthiness and knowledge. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who provide ERC filing assistance.
Keep in mind that while these business can offer important assistance, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate organizations to maintain and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, employers must satisfy one of two criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As mentioned previously, for 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away 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 portion (approximately 70%) of certified wages paid to workers, consisting of particular health plan 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: Initially, companies that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got a PPP loan. The exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, permitting qualified companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for businesses to change prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be refunded to the company if the credit surpasses the amount of work taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility requirements have actually evolved gradually. The very best course of action is to consult with a tax professional or check out the main IRS site for the most updated and detailed details relating to the ERC, including any current legal changes or updates.
To get approved for the ERC, a business needs to fulfill among the following requirements:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, but there are some exceptions. For example, government entities and organizations that got a PPP loan may have restrictions on claiming the credit.
The process for declaring the ERC includes finishing the essential kinds and including the credit on your work income tax return (normally Type 941). The exact time it takes to process the credit can differ based upon several factors, including the intricacy of your organization and the workload of the internal revenue service. It’s advised to talk to a tax expert for guidance particular to your scenario.
There are numerous business that can help with the process of claiming the ERC. Some well-known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based upon general understanding and may not show the most current updates or modifications to the ERC. It is very important to consult with a tax professional or go to the official internal revenue service site for the most updated and accurate details regarding eligibility, declaring treatments, and offered assistance.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on incomes paid to all workers whether they really worked or not. To put it simply, even if the.
employees worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 workers usually in 2019, then the credit is.
permitted only for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” consists of not simply money payments however also a part of the expense of employer.
provided healthcare. Bdo Employee Retention Credit
Employers can be right away repaid for the credit by minimizing the amount of payroll taxes they.