Lets talk first about Cares Act Employee Retention Credit Ppp Loan :
Our group here what do these guys doing everybody in this space is helping teach people about ERC and uh always provide a beautiful breakfast and have individuals truly learn more about the program we should head to the room where we have the ability to show a few 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 actually Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I mean you understand if you just begin to look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest think about the number of real clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you understand when you
receive this you know the check is opted for sure which’s when they pay so they do not pay anything till they in fact get the money they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their checking account and they can really trust Wonder trust that the procedure has been ended up and how many you believe you’ve processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you require experts 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 Fantastic here you’re at my YouTube channel we’re talking about something actually crucial today the staff member retention credit which most of you have actually never become aware of I definitely had not heard of it up until really recently and found out a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 simply call up your bank supervisor and say offer me a loan it doesn’t 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 representative for this I love 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 simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided businesses 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 big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund alright go on sorry I simply need to ensure we got that point I mean that’s a huge distinction a loan versus cash cash I like money cash 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 original cares Act is the ERC and yes Kevin it is a lovely hard 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 employee retention credit that person had to be a worker so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for staff members right you needed to have owned an organization but it’s based on you having W-2 staff members in America not 10.99. so as long as you had W-2 staff members 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 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per worker 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 just altered the rules in.
2021 versus because 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 5 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 worker that is because that’s a great deal of money it is now there’s a caveat here the PPP cash would need to be reduced 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 on average Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge clearly now the big question is why does no one understand about this because look when I initially became aware of this when I first fulfilled Josh you understand I have actually got great deals of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many numerous investments in entrepreneurs of which numerous suffered through the pandemic when I first heard about this I called BS I do not believe it due to the fact that 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 deserved and we used them carefully to survive throughout the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even called to my politician friends Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody know about the employee retention credit you understand what’s fascinating you’re discussing 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 big 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 procedure 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 done PPP you might not do ERC in the original 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 government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not really he or she’s never done it before do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never done this before unless you have an account that entered into this organization and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge big corporate clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
company whose company is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all companies regardless of size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is totally or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar 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 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 total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether an employer had, typically, more or less than.
100 workers in 2019.
Business that focus on ERC filing help typically provide competence and support to assist organizations navigate the complex procedure of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Cares Act Employee Retention Credit Ppp Loan
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based on factors such as your market, income, and operations. They can assist identify if you meet the requirements for the credit and determine the maximum credit amount you can claim.
Paperwork and Calculation: ERC filing services will help in collecting the needed paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise assist compute the credit quantity based on qualified wages and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can examine your past payroll records and financials to determine prospective chances for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the essential types and documents on your behalf. This includes completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have actually evolved gradually. These business remain upgraded with the current changes and ensure that your filings abide by the most existing standards. If the Internal revenue service demands extra info or carries out an audit associated to your ERC claim, they can likewise offer continuous assistance.
It’s important to research study and vet any company providing ERC filing support to ensure their trustworthiness and competence. Look for established firms with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax specialists who use ERC filing assistance.
Bear in mind that while these business can offer important support, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and ensure 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 companies to retain and pay their workers during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, companies must fulfill one of two requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As mentioned previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of certified earnings paid to workers, consisting of specific health plan expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, allowing eligible companies to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, typically Type 941. If the credit goes beyond the quantity of work taxes owed, the excess can be reimbursed to the company.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have evolved with time. The very best strategy is to consult with a tax expert or check out the official IRS website for the most comprehensive and current details regarding the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, a company must fulfill among the following criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined 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 immediately preceding quarter.
The ERC is offered to companies of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and businesses that received a PPP loan might have restrictions on claiming the credit.
The procedure for claiming the ERC involves finishing the necessary forms and consisting of the credit on your work income tax return (normally Form 941). The exact time it takes to process the credit can vary based on numerous factors, including the intricacy of your company and the workload of the IRS. It’s suggested to consult with a tax professional for guidance specific to your circumstance.
There are numerous companies that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some well-known companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and call these companies straight to inquire about their charges and services.
Please note that the details provided here is based upon general knowledge and may not show the most recent updates or changes to the ERC. It’s important to speak with a tax expert or go to the main IRS website for the most accurate and up-to-date info regarding eligibility, declaring treatments, and offered help.
Less than 100. If the company had 100 or fewer employees on average in 2019, then the credit is based.
on salaries paid to all staff members whether they actually worked or not. To put it simply, even if the.
staff members worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
enabled just for salaries paid to workers who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply cash payments however likewise a part of the expense of employer.
provided health care. Cares Act Employee Retention Credit Ppp Loan
Companies can be instantly repaid for the credit by decreasing the quantity of payroll taxes they.