Find Can I Still Get The Employee Retention Credit 2023

Lets talk first about Can I Still Get The Employee Retention Credit :

Our group here what do these guys doing everyone in this space is assisting teach individuals about ERC and uh always offer a lovely breakfast and have individuals truly find out about the program we must head to the space where we are able to show some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of 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 indicate you understand if you just start to take a look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I suggest think of the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you know when you

get this you understand the check is gone for sure and that’s when they pay so they do not pay anything till they really receive the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they deposit it into their bank account and they can genuinely trust Wonder trust that the process has actually been finished and the number of you believe you’ve processed given that you started this we’re about 35 000 of these for

 


about 6 billion dollars wow so plainly they know 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 Wonderful here you’re at my YouTube channel we’re discussing something actually crucial today the staff member retention credit which the majority of you have actually never become aware of I certainly had not become aware of it up until really recently and learned a lot about it because this is most likely the lowest cost of capital for any small business anywhere

anytime if you have staff members in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just contact your bank manager and state 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 ended up being yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used organizations 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 huge distinction 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 okay go on sorry I just have to make certain we got that point I imply that’s a huge difference a loan versus money money I like cash money 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 initial cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get real cash from the internal revenue service all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that person had to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you had to have owned an organization but it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 workers 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 appropriate so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash just how much can you return per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the employee’s wage to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that happen um they just altered the rules in.

2021 versus since the mayhem of the pandemic so they wanted to even get more to keep those staff members 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 happens 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of money it is now there’s a caution here the PPP money would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money 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 internal revenue service so it’s big certainly now the huge question is why does no one know about this since look when I initially became aware of this when I first satisfied Josh you understand I have actually got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I don’t believe it because I utilize the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well should have and we utilized them carefully to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader friends Governor Senators they didn’t learn about it I mean that’s how you know that’s how false information is that there’s no details out there then a bunch of individuals told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one know about the employee retention credit you understand what’s fascinating you’re speaking about the banks Kevin due to the fact that in the PPP loan process the federal government made it really clear that if you desired 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 procedure process that’s all um and here there was mayhem due to the fact that remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial 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 federal government never made it clear to any person about how to.

do this does your CFO understand how to do this not actually he or she’s never ever 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 business your accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this company and bottom line my firm Kevin has been in business since 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our big huge business customers have dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.

The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Because of COVID-19 or whose gross receipts, company whose organization is totally or partially suspended.
decline by more than 50%.
Availability.
1. The credit is available to all companies no matter size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.

Estimation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying incomes differs by whether an employer had, on average, basically than.
100 employees in 2019.

Companies that specialize in ERC filing support usually offer know-how and assistance to help organizations navigate the complex process of declaring the credit. They can provide different services, including:.

 

How is the employee retention credit calculated? Can I Still Get The Employee Retention Credit

Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based upon elements such as your industry, profits, and operations. If you meet the requirements for the credit and recognize the optimum credit quantity you can declare, they can help identify.
Documentation and Computation: ERC filing services will help in gathering the required documents, such as payroll records and monetary statements, to support your claim. They will also help determine the credit quantity based on eligible salaries and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to identify potential opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the needed forms and paperwork in your place. This includes completing Type 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have progressed in time. These companies stay upgraded with the latest changes and make sure that your filings abide by the most existing standards. If the Internal revenue service requests additional information or conducts an audit related to your ERC claim, they can likewise supply continuous support.
It is essential to research study and veterinarian any company using ERC filing support to guarantee their credibility and expertise. Try to find established companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax specialists who offer ERC filing assistance.

Keep in mind that while these companies can provide important help, it’s always a great concept to have a standard understanding of the ERC requirements and process yourself. This will help you make notified choices and guarantee accurate filings.

The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to motivate organizations to retain and pay their employees throughout the pandemic, even if their operations have been affected.

Here are some key points about the ERC:.

Eligibility: The ERC is offered to qualified companies, including for-profit businesses, tax-exempt companies, and specific governmental entities. To qualify, companies should fulfill one of two requirements:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the 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.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of certified earnings paid to employees, consisting of specific health plan expenses. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they got a PPP loan. Nevertheless, the very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing qualified companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to amend prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Type 941. The excess can be refunded to the employer if the credit goes beyond the amount of work taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have evolved with time. The best strategy is to seek advice from a tax professional or visit the main internal revenue service website for the most comprehensive and current details regarding the ERC, consisting of any current legislative modifications or updates.

To qualify for the ERC, an organization needs to satisfy among the following requirements:.

Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. Federal government entities and companies that got a PPP loan might have constraints on claiming the credit.

The procedure for declaring the ERC includes finishing the essential kinds and including the credit on your work income tax return (generally Type 941). The exact time it takes to process the credit can vary based on several factors, consisting of the intricacy of your service and the workload of the internal revenue service. It’s suggested to talk to a tax professional for assistance specific to your scenario.

There are numerous business that can aid with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some widely known companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and get in touch with these business directly to inquire about their fees and services.

Please keep in mind that the details offered here is based upon general knowledge and may not reflect the most current updates or changes to the ERC. It’s important to seek advice from a tax expert or go to the main internal revenue service website for the most up-to-date and accurate information relating to eligibility, declaring treatments, and offered help.

Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on salaries paid to all workers whether they actually worked or not. To put it simply, even if the.
employees worked full-time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
allowed just for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just money payments but also a portion of the expense of company.
offered health care. Can I Still Get The Employee Retention Credit
Payment.

Companies can be right away reimbursed for the credit by lowering the amount of payroll taxes they.