Lets talk first about Can You Claim Employee Retention Credit And Ppp :
Our team here what do these men doing everybody in this room is helping teach individuals about ERC and uh always offer a beautiful breakfast and have people really learn about the program we ought to head to the room where we have the ability to show a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I indicate you know if you simply start 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 suggest it’s just I imply think of how many actual customers 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 confirmed and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you know when you
receive this you understand the check is gone for sure which’s when they pay so they do not pay anything up until they in fact receive the cash they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their checking account and they can really trust Wonder trust that the process has actually been completed and how many you think you’ve processed since you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing and that’s what you need you need professionals 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 Wonderful here you’re at my YouTube channel we’re discussing something really important today the worker retention credit which the majority of you have never heard of I definitely hadn’t heard of it till very recently and found out a lot about it since this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have employees in between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Ideas 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 phone your bank manager and state provide 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 become yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away soon you got to learn everything about it let’s talk staff member 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 services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund okay go on sorry I just have to ensure we got that point I mean that’s a huge distinction a loan versus money money I like cash money that’s what we’re speaking about okay 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 discuss how it works because it seems like to me if it’s a if it’s worker retention credit that individual needed to be a staff member so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have actually owned a company but it’s based upon you having W-2 staff members 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 have to be on payroll for the first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part cash just how much can you get back per staff member that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to a maximum of 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the turmoil of the pandemic so they wanted to even get more to keep those employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caution 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 2 you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city 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 substantial obviously now the big question is why does nobody know about this since look when I initially became aware of this when I initially satisfied Josh you understand I have actually got lots of financial investments in great deals of business I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in business owners of which numerous 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 money 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 utilized them sensibly to survive during the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my political leader buddies Guv Senators they didn’t know about it I mean that’s how you know that’s how misinformation is that there’s no info out there then a bunch of people told me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does no one learn about the staff member retention credit you know what’s interesting you’re speaking about the banks Kevin because in the PPP loan procedure the federal government made it very 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 just process process that’s all um and here there was turmoil due to the fact that remember in the initial cares act you might not do both programs so if you had done PPP you might refrain from doing ERC in the initial 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 government never ever 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 done it previously do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this service and bottom line my company Kevin has been in business given that 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our big huge business clients have actually worked with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose organization is totally or partly suspended.
decrease by more than 50%.
1. The credit is available to all employers regardless of size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization 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 equivalent quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying wages varies by whether an employer had, on average, more or less than.
100 employees in 2019.
Business that focus on ERC filing assistance normally provide proficiency and assistance to help organizations navigate the intricate process of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Can You Claim Employee Retention Credit And Ppp
Eligibility Evaluation: These business will evaluate your company’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can claim, they can assist determine.
Paperwork and Estimation: ERC filing services will help in collecting the essential documentation, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit quantity based on eligible earnings and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can assist you change prior tax returns to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the needed kinds and documentation in your place. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have actually developed with time. These companies stay upgraded with the latest modifications and ensure that your filings comply with the most present guidelines. If the IRS demands additional details or carries out an audit related to your ERC claim, they can likewise offer continuous assistance.
It is essential to research and veterinarian any company using ERC filing assistance to guarantee their credibility and expertise. Try to find established firms with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax specialists who offer ERC filing support.
Bear in mind that while these business can provide important help, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate organizations 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 readily available to eligible employers, including for-profit services, tax-exempt companies, and particular governmental entities. To certify, employers need to satisfy one of two criteria:.
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. As pointed out previously, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts 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 quantity amounts to a percentage (as much as 70%) of certified salaries paid to employees, including specific health plan costs. 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, companies that got an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they got a PPP loan. The same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, normally Type 941. The excess can be reimbursed to the company if the credit goes beyond the amount of work taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually developed gradually. The best course of action is to speak with a tax expert or check out the official internal revenue service site for the most up-to-date and in-depth info concerning the ERC, including any recent legal modifications or updates.
To get approved for the ERC, a service must meet among the following requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very 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, consisting of tax-exempt companies, however there are some exceptions. Government entities and businesses that got a PPP loan might have limitations on claiming the credit.
The process for claiming the ERC involves completing the necessary kinds and consisting of the credit on your employment income tax return (normally Form 941). The exact time it requires to process the credit can differ based on a number of elements, including the complexity of your company and the work of the IRS. It’s recommended to seek advice from a tax professional for guidance specific to your scenario.
There are a number of business that can help with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some popular companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and get in touch with these companies directly to inquire about their fees and services.
Please note that the information provided here is based upon general understanding and might not show the most recent updates or modifications to the ERC. It is necessary to talk to a tax expert or visit the official IRS site for the most updated and accurate info concerning eligibility, declaring procedures, and offered help.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on salaries paid to all staff members whether they actually worked or not. In other words, even if the.
employees 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 employees typically in 2019, then the credit is.
allowed only for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply cash payments however also a part of the cost of employer.
provided healthcare. Can You Claim Employee Retention Credit And Ppp
Employers can be instantly reimbursed for the credit by decreasing the amount of payroll taxes they.