Lets talk first about Deadline For Filing 941X For Employee Retention Credit :
Our team here what do these guys doing everyone in this space is assisting teach individuals about ERC and uh always provide a stunning breakfast and have people actually discover the program we need to head to the space where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I suggest you know if you just start to take a 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 indicate consider how many actual 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 IRS heading to the consumer so that’s how you’re able to track it you understand when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything until they actually get the cash they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their checking account and they can truly rely on Wonder trust that the procedure has actually been ended up and the number of you think you have actually processed because you began 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 require you require 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 Fantastic here you’re at my YouTube channel we’re talking about something really crucial today the staff member retention credit which the majority of you have actually never become aware of I certainly hadn’t heard of it until really just recently and learned a lot about it since this is probably the most affordable expense of capital for any small company anywhere
anytime if you have workers in between 5 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 not easy this isn’t like PPP we simply call your bank manager and say 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’ve ended up being yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund all right go on sorry I just have to make certain we got that point I imply that’s a big distinction a loan versus money money I like cash cash that’s what we’re talking about all right 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 gorgeous hard check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works because it seems like to me if it’s a if it’s worker retention credit that person needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have actually owned a business but it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 staff members 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 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my preferred part money just how much can you get back per employee that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to an optimum of seven thousand per quarter how did that take place um they just altered the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wished 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 takes place 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 employee that is since that’s a lot of money it is now there’s a caution here the PPP cash would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten 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 internal revenue service so it’s big obviously now the huge concern is why does nobody understand about this because appearance when I initially found out about this when I initially satisfied Josh you understand I have actually got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I first heard about this I called BS I do not think it since I use 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 deserved and we used them wisely to stay alive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my political leader buddies Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one learn about the employee retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan process 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was turmoil due to the fact that keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the original program and when they changed 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 anyone about how to.
do this does your CFO know how to do this not really she or he’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 company your accountant no your accounting professional’s never ever done this before unless you have an account that went into this business and bottom line my firm Kevin has stayed in business because 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 lot of our big huge business customers have actually dealt with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Since of COVID-19 or whose gross receipts, employer whose service is completely or partly suspended.
decline by more than 50%.
1. The credit is offered to all companies regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses 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 business is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. Once the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
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 total.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of qualifying wages differs by whether an employer had, on average, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing assistance normally provide know-how and assistance to help businesses browse the complex procedure of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Deadline For Filing 941X For Employee Retention Credit
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon aspects such as your market, earnings, and operations. If you satisfy the requirements for the credit and determine the maximum credit amount you can claim, they can help identify.
Documentation and Computation: ERC filing services will help in collecting the needed documentation, such as payroll records and financial statements, to support your claim. They will also assist determine the credit quantity 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 evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the necessary kinds and paperwork on your behalf. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have developed gradually. These companies stay upgraded with the latest modifications and make sure that your filings adhere to the most present guidelines. If the Internal revenue service demands additional info or performs an audit associated to your ERC claim, they can likewise provide continuous assistance.
It is very important to research and veterinarian any company providing ERC filing assistance to ensure their trustworthiness and know-how. Look for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax specialists who offer ERC submitting assistance.
Bear in mind that while these business can supply important support, it’s constantly a great concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage organizations to maintain and pay their staff members during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified companies, including for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, employers must meet one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of certified incomes paid to staff members, including particular health plan expenditures. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received an Income Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. The very same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, permitting qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, usually Type 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the company.
It is necessary to note that the ERC arrangements and eligibility requirements have actually evolved over time. The best strategy is to speak with a tax professional or check out the main IRS website for the most comprehensive and current details concerning the ERC, including any current legislative changes or updates.
To qualify for the ERC, an organization needs to satisfy one of the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and companies that got a PPP loan might have constraints on claiming the credit.
The process for claiming the ERC includes completing the required types and consisting of the credit on your employment tax return (typically Type 941). The exact time it requires to process the credit can vary based upon numerous elements, including the complexity of your organization and the workload of the internal revenue service. It’s recommended to speak with a tax professional for guidance specific to your scenario.
There are numerous business that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some popular business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these business straight to inquire about their services and costs.
Please note that the details supplied here is based on general understanding and may not reflect the most current updates or modifications to the ERC. It’s important to speak with a tax expert or check out the main IRS website for the most precise and updated information regarding eligibility, claiming treatments, and readily available help.
Less than 100. If the company had 100 or fewer workers typically in 2019, then the credit is based.
on salaries paid to all staff members whether they really worked or not. Simply put, even if the.
workers worked full-time and earned money for full time work, the company 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 salaries paid to employees who did not work during the calendar quarter.
In both cases, “wages” consists of not simply money payments but likewise a portion of the cost of company.
provided health care. Deadline For Filing 941X For Employee Retention Credit
Employers can be instantly compensated for the credit by reducing the amount of payroll taxes they.