Lets talk first about Best Service For Employee Retention Credit :
Our group here what do these people doing everybody in this room is helping teach people about ERC and uh constantly supply a stunning breakfast and have people truly find out about the program we need to head to the room where we have the ability to display some 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 actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I mean you know if you just begin to 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 imply think about the number of actual clients that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
receive this you understand the check is gone for sure and that’s when they pay so they don’t pay anything till they in fact get the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their checking account and they can truly trust Wonder trust that the process has been completed and how many you think you’ve processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you need you require professionals 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 Terrific here you’re at my YouTube channel we’re talking about something actually crucial today the worker retention credit which the majority of you have never heard of I certainly hadn’t heard of it up until very recently and found out a lot about it due to the fact that this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have workers between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply contact your bank manager and state offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform 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 employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference 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 alright go on sorry I simply need to ensure we got that point I indicate that’s a big difference a loan versus money money I like cash cash that’s what we’re speaking about fine 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 stunning difficult check in the mail where you get actual cash from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s staff member retention credit that person needed to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned an organization however it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 employees and you paid federal payroll taxes that’s why you would be eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that period 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 specific Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus due to the fact that 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 up to five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caveat here the PPP cash would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge undoubtedly now the big concern is why does nobody understand about this because look when I first found out about this when I first fulfilled Josh you understand I have actually got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I don’t think it since I utilize the PPP we went through the money center Banks to get it it was really 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 stay alive during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even contacted us to my politician friends Guv Senators they didn’t learn about it I imply that’s how you understand that’s how false information is that there’s no info out there then a lot of individuals told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does nobody understand about the worker retention credit you know what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan process the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process procedure 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 mayhem because keep in mind in the original cares act you might refrain from doing 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 not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never done it in the past 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 company your accountant no your accountant’s never ever done this prior to unless you have an account that went into this business and bottom line my company Kevin has stayed in business because 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big business customers have dealt with bottom line to recover other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member 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 as much as $10,000 in wages paid by an.
Since of COVID-19 or whose gross receipts, company whose service is totally or partially suspended.
decline by more than 50%.
1. The credit is offered to all employers despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether a company had, typically, basically than.
100 employees in 2019.
Business that focus on ERC filing help generally offer proficiency and assistance to help companies navigate the complicated process of claiming the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Best Service For Employee Retention Credit
Eligibility Assessment: These business will examine your organization’s eligibility for the ERC based upon aspects such as your market, profits, and operations. If you fulfill the requirements for the credit and identify the optimum credit quantity you can claim, they can assist determine.
Paperwork and Computation: ERC filing services will assist in collecting the essential documentation, such as payroll records and financial statements, to support your claim. They will likewise assist compute the credit quantity based upon eligible salaries and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can evaluate your past payroll records and financials to recognize potential opportunities for retroactive credits. They can help you modify previous income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the essential forms and documentation on your behalf. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have actually evolved gradually. These companies stay upgraded with the current modifications and guarantee that your filings adhere to the most existing standards. If the Internal revenue service demands extra info or performs an audit associated to your ERC claim, they can also provide ongoing assistance.
It’s important to research study and veterinarian any company using ERC filing assistance to ensure their reliability and know-how. Try to find established firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who use ERC filing assistance.
Keep in mind that while these companies can provide valuable support, it’s always a good idea to have a basic understanding of the ERC requirements and process yourself. This will help you make informed decisions and make sure 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 procedures. The goal of the ERC is to encourage organizations to retain and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, companies should fulfill one of two criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As mentioned previously, 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 decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of qualified wages paid to workers, consisting of certain health insurance expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. Nevertheless, the very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and enhanced, permitting eligible employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision provides a chance for services to change prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work tax returns, usually Form 941. The excess can be refunded to the company if the credit surpasses the amount of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have progressed gradually. The best strategy is to talk to a tax expert or check out the main IRS website for the most up-to-date and in-depth information regarding the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company must meet one of the following criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a substantial decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and services that got a PPP loan might have limitations on declaring the credit.
The procedure for declaring the ERC involves completing the necessary kinds and including the credit on your work income tax return (normally Type 941). The exact time it requires to process the credit can differ based on several aspects, including the complexity of your business and the workload of the IRS. It’s recommended to consult with a tax professional for guidance specific to your circumstance.
There are several companies that can help with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some well-known companies that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these business directly to ask about their services and charges.
Please note that the info offered here is based on general understanding and may not show the most current updates or modifications to the ERC. It is essential to talk to a tax expert or visit the official IRS website for the most precise and current information concerning eligibility, declaring treatments, and available help.
Less than 100. If the employer had 100 or less employees on average in 2019, then the credit is based.
on salaries paid to all workers whether they in fact worked or not. In other words, even if the.
workers worked full-time and made money 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 salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” includes not simply money payments however also a portion of the expense of employer.
supplied healthcare. Best Service For Employee Retention Credit
Companies can be instantly compensated for the credit by minimizing the quantity of payroll taxes they.