Lets talk first about Build Back Better Bill Employee Retention Credit :
Our group here what do these men doing everyone in this room is helping teach individuals about ERC and uh always provide a lovely breakfast and have individuals really discover the program we ought to head to the room where we have the ability to show some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I indicate you know if you simply begin to take a look at a few 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 consider how many real customers 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 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 understand when you
get this you know the check is opted for sure and that’s when they pay so they don’t pay anything up until they in fact receive the money they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the procedure has actually been ended up and how many you believe you have actually processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you require you require specialists on the other end of the phone to process this and get it to where you get among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re talking about something truly important today the employee retention credit which the majority of you have never ever heard of I definitely had not become aware of it until extremely just recently and discovered a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have workers in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just contact your bank supervisor and say give me a loan it doesn’t 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 representative for this I enjoy this program it’s going away soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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.
correct the money money payroll tax refund all right go on sorry I simply have to make certain we got that point I indicate that’s a big distinction a loan versus money money I like cash money that’s what we’re discussing 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 beautiful tough check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works since it sounds like to me if it’s a if it’s worker retention credit that person needed to be a staff member 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 staff members right you needed to have actually owned a company but it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 employees 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 six months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to an optimum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus since the turmoil 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 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a lot of cash it is now there’s a caution here the PPP money would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the huge concern is why does no one understand about this because appearance when I initially heard about this when I initially met Josh you know I’ve got great deals of financial investments in lots of companies I’m a significant supporter for entrepreneurship in America and make numerous numerous investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it due to the fact that I utilize 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 should have and we used them carefully to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even called to my political leader good friends Governor Senators they didn’t know about it I suggest that’s how you know that’s how misinformation is that there’s no details out there then a lot of individuals told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody understand about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin because in the PPP loan process the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was turmoil since remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this before unless you have an account that went into this company and bottom line my company Kevin has actually stayed in business given that 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big huge business customers have actually worked with bottom line to recuperate other federal government programs we’ve 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 federal government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
employer whose service is fully or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all companies no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partially 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 similar quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying incomes differs by whether an employer had, typically, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing help generally supply proficiency and assistance to help services browse the complicated process of claiming the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Build Back Better Bill Employee Retention Credit
Eligibility Evaluation: These business will examine your organization’s eligibility for the ERC based upon elements such as your market, income, and operations. If you meet the requirements for the credit and recognize the maximum credit quantity you can declare, they can assist figure out.
Paperwork and Calculation: ERC filing services will help in collecting the essential paperwork, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit quantity based on eligible wages and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these business can review your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the essential types and paperwork in your place. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have evolved gradually. These companies remain updated with the most recent changes and make sure that your filings adhere to the most present standards. If the Internal revenue service requests extra details or conducts an audit associated to your ERC claim, they can also offer ongoing assistance.
It is necessary to research study and vet any business offering ERC filing support to ensure their trustworthiness and competence. Try to find recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who use ERC submitting assistance.
Bear in mind that while these companies can supply valuable help, it’s always a great idea to have a standard understanding of the ERC requirements and process yourself. This will help you make informed decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage services to maintain and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, including for-profit businesses, tax-exempt organizations, and certain governmental entities. To certify, employers need to fulfill one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As discussed previously, for 2021, a substantial 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 specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts 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 quantity is equal to a percentage (as much as 70%) of certified wages paid to staff members, including certain health insurance expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. However, the very same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, enabling qualified companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement offers a chance for services to amend prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work tax returns, normally Form 941. The excess can be reimbursed to the company if the credit exceeds the quantity of work taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have evolved gradually. The best course of action is to consult with a tax professional or visit the main IRS site for the most detailed and up-to-date details concerning the ERC, consisting of any recent legal changes or updates.
To qualify for the ERC, a company should meet 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 significant decline in gross invoices. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is available to services of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and companies that got a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the necessary kinds and including the credit on your employment income tax return (normally Type 941). The exact time it requires to process the credit can differ based on several elements, consisting of the complexity of your service and the work of the IRS. It’s suggested to seek advice from a tax professional for guidance particular to your circumstance.
There are several business that can aid with the procedure of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some widely known companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these companies directly to ask about their fees and services.
Please note that the details supplied here is based on basic understanding and might not reflect the most current updates or changes to the ERC. It is necessary to talk to a tax expert or visit the official IRS website for the most precise and up-to-date details relating to eligibility, claiming procedures, and available help.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on earnings paid to all workers whether they really worked or not. Simply put, even if the.
workers worked full time and made money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
allowed just for incomes paid to employees who did not work during the calendar quarter.
In both cases, “incomes” includes not simply cash payments however also a portion of the cost of company.
supplied healthcare. Build Back Better Bill Employee Retention Credit
Employers can be instantly repaid for the credit by minimizing the amount of payroll taxes they.