Lets talk first about Covid-19 Employee Retention Credit Program :
Our group here what do these people doing everybody in this room is assisting teach individuals about ERC and uh constantly supply a stunning breakfast and have individuals really discover 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 wish to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers confirming 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 indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I mean 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 confirmed the numbers are validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you have the ability to track it you understand when you
receive this you know the check is chosen sure and that’s when they pay so they do not pay anything until they really get the money they do not pay bottom line Wonder trust anything till this letter is verified the check is on the way they transfer it into their bank account and they can truly trust Wonder trust that the process has been completed and how many you believe you’ve processed because you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing which’s what you need 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 Wonderful here you’re at my YouTube channel we’re speaking about something really important today the employee retention credit which most of you have never ever become aware of I definitely hadn’t become aware of it until really recently and learned a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have staff members in between 5 and five hundred so I’ve got the specialist 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 difficult this isn’t like PPP we just call up your bank supervisor and state provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us 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 very soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered companies three chances 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 two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund okay go on sorry I simply have to make sure we got that point I mean that’s a big difference a loan versus money money I like money cash 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 initial cares Act is the ERC and yes Kevin it is a stunning tough check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that person needed to be an employee 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 had to have owned a company however it’s based upon you having W-2 staff members 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 six months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my preferred part money just how much can you return per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s wage to an optimum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because the mayhem 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 approximately 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a great deal of money it is now there’s a caveat 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 minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around ten thousand dollars a person so let’s say 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 internal revenue service so it’s substantial clearly now the huge question is why does no one know about this because appearance when I first became aware of this when I initially met Josh you understand I have actually got great deals of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many 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 since I use the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them carefully to stay alive during the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t understand about it I suggest that’s how you understand that’s how false information is that there’s no info out there then a lot of individuals told me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does no one learn about the worker retention credit you know what’s fascinating you’re talking about the banks Kevin since in the PPP loan procedure 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 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 chaos because keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not 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 understand how to do this not truly she or he’s never done it in the past 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 accountant 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 firm Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge big business clients have dealt with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
company whose business is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all companies despite size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the comparable quarter in 2019. Once the.
employer’s gross invoices 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 wages paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying wages varies by whether a company had, usually, basically than.
100 workers in 2019.
Business that concentrate on ERC filing help typically offer competence and support to assist businesses browse the intricate process of claiming the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Covid-19 Employee Retention Credit Program
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon elements such as your market, profits, and operations. They can help identify if you satisfy the requirements for the credit and recognize the maximum credit amount you can claim.
Documents and Estimation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and financial declarations, to support your claim. They will also assist calculate the credit amount based upon qualified wages and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the necessary types and paperwork on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved over time. These companies stay upgraded with the most recent changes and guarantee that your filings adhere to the most current guidelines. They can also supply continuous assistance if the IRS requests additional information or carries out an audit related to your ERC claim.
It is very important to research study and veterinarian any company providing ERC filing help to ensure their reliability and know-how. Look for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax professionals who provide ERC filing support.
Bear in mind that while these companies can offer important assistance, it’s always a good concept to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed decisions and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to encourage services to keep and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To certify, companies should fulfill one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As discussed earlier, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices 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 is equal to a portion (as much as 70%) of certified incomes paid to employees, including specific health plan 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: Initially, services that received an Income Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they received a PPP loan. The very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting eligible employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers a chance for services to modify prior-year tax returns and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Form 941. The excess can be refunded to the company if the credit exceeds the quantity of work taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have developed with time. The best strategy is to talk to a tax expert or check out the main internal revenue service website for the most up-to-date and detailed information regarding the ERC, consisting of any recent legislative changes or updates.
To qualify for the ERC, a company should fulfill among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a substantial decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Government entities and services that got a PPP loan might have limitations on declaring the credit.
The procedure for claiming the ERC includes completing the needed kinds and consisting of the credit on your work tax return (generally Form 941). The exact time it requires to process the credit can differ based upon a number of elements, consisting of the complexity of your service and the work of the IRS. It’s suggested to talk to a tax expert for assistance specific to your scenario.
There are numerous companies that can assist with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and contact these companies directly to ask about their charges and services.
Please keep in mind that the details provided here is based upon general knowledge and might not reflect the most recent updates or changes to the ERC. It’s important to seek advice from a tax professional or go to the main IRS website for the most up-to-date and precise information concerning eligibility, claiming procedures, and offered support.
Less than 100. If the company had 100 or less employees usually in 2019, then the credit is based.
on wages paid to all employees whether they actually worked or not. In other words, even if the.
staff members worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 employees typically in 2019, then the credit is.
enabled only for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply money payments however likewise a part of the expense of company.
supplied healthcare. Covid-19 Employee Retention Credit Program
Companies can be right away reimbursed for the credit by lowering the quantity of payroll taxes they.