Lets talk first about Can You Get Ppp Loan And Employee Retention Credit :
Our team here what do these men doing everyone in this room is helping teach individuals about ERC and uh constantly supply a lovely breakfast and have people truly learn about the program we ought to head to the room where we have the ability to display a few of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars literally 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 imply you understand if you just start to 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 indicate it’s just I suggest think of the number of actual 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 verified 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
get this you know the check is opted for sure and that’s when they pay so they don’t pay anything till they actually get the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they transfer it into their bank account and they can really rely on Wonder trust that the procedure has actually been completed and the number of you think you’ve processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand 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 among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re speaking about something actually essential today the employee retention credit which most of you have never ever become aware of I definitely had not heard of it till very recently and found out a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 simply call your bank manager and say 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 enjoy this program it’s going away soon you got to find out all 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 created the cares Act and the cares act offered companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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.
correct the money cash payroll tax refund all right go on sorry I just have to ensure we got that point I indicate that’s a huge distinction a loan versus cash money I like money cash that’s what we’re discussing 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 initial cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual cash from the internal revenue service all right so let’s discuss how it works since it seems like to me if it’s a if it’s worker retention credit that individual 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 workers right you needed to have actually owned a company but it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 workers 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 have to be on payroll for the very first 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s determined 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 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 employee’s salary to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that take place um they just altered the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wished 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 takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of cash it is now there’s a caution here the PPP money would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s state 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 clearly now the big question is why does no one know about this because look when I initially found out about this when I initially met Josh you understand I have actually got lots of financial investments in lots of companies I’m a significant supporter for entrepreneurship in America and make lots of many financial investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I do not believe it because I utilize the PPP we went through the cash 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 deserved and we utilized them wisely 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 friends Guv Senators they didn’t understand 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 individuals informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one understand about the employee retention credit you know 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 just procedure process that’s all um and here there was chaos since remember in the initial cares act you could not do both programs so if you had actually done PPP you might not do ERC in the original program and when they altered the law in 2021 the banks were refraining from 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 know how to do this not truly he or she’s never done it previously do the banks do it nope the banks don’t 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 before unless you have an account that went into this company and bottom line my firm Kevin has actually stayed in business considering that 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have actually dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Because of COVID-19 or whose gross invoices, employer whose organization is fully or partly suspended.
decrease by more than 50%.
Accessibility.
1. The credit is offered to all employers regardless of size including tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations 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 employer’s organization is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether an employer had, typically, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing help typically offer expertise and support to assist businesses navigate the intricate procedure of claiming the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Can You Get Ppp Loan And Employee Retention Credit
Eligibility Evaluation: These business will assess your organization’s eligibility for the ERC based on aspects such as your industry, earnings, and operations. If you fulfill the requirements for the credit and identify the optimum credit quantity you can declare, they can assist figure out.
Documentation and Estimation: ERC filing services will assist in gathering the needed documents, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit amount based upon qualified salaries and other certifying 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 potential opportunities for retroactive credits. They can assist you modify prior tax returns to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and send the required types and paperwork in your place. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have actually evolved in time. These business remain upgraded with the latest changes and guarantee that your filings comply with the most present standards. If the IRS demands additional details or performs an audit related to your ERC claim, they can also provide continuous assistance.
It’s important to research and veterinarian any company providing ERC filing help to ensure their credibility and know-how. Look for established firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who use ERC submitting support.
Remember that while these companies can provide valuable support, it’s always a great idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage services to keep and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, companies should meet one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross invoices. As discussed previously, for 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (up to 70%) of certified wages paid to workers, including certain health insurance costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. The exact same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, permitting eligible employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to amend prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, normally Form 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It is essential to note that the ERC arrangements and eligibility requirements have actually evolved in time. The very best strategy is to consult with a tax professional or go to the official internal revenue service site for the most comprehensive and current details regarding the ERC, including any recent legal changes or updates.
To receive the ERC, a business needs to meet one of the following requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and services that got a PPP loan might have constraints on declaring the credit.
The process for declaring the ERC includes finishing the required kinds and including the credit on your employment income tax return (usually Kind 941). The exact time it requires to process the credit can differ based on numerous elements, including the intricacy of your business and the work of the IRS. It’s advised to consult with a tax professional for assistance particular to your circumstance.
There are a number of business that can aid with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll provider. Some widely known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and get in touch with these business directly to ask about their costs and services.
Please note that the info supplied here is based upon general understanding and may not reflect the most recent updates or changes to the ERC. It is very important to talk to a tax expert or check out the official internal revenue service website for the most current and accurate details relating to eligibility, declaring treatments, and offered assistance.
Less than 100. If the company had 100 or less workers typically in 2019, then the credit is based.
on earnings paid to all workers whether they actually worked or not. Simply put, even if the.
workers worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
permitted just for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just cash payments but also a part of the expense of company.
supplied healthcare. Can You Get Ppp Loan And Employee Retention Credit
Payment.
Employers can be instantly reimbursed for the credit by decreasing the quantity of payroll taxes they.