Lets talk first about Do Churches Qualify For The Employee Retention Credit :
Our group here what do these men doing everybody in this room is assisting teach people about ERC and uh constantly provide a stunning breakfast and have people truly discover the program we should head to the space where we are able 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 numerous countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I mean 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 imply it’s simply I imply consider how many real 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 confirmed 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
get this you understand the check is opted for sure and that’s when they pay so they don’t pay anything till they actually receive the cash they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their savings account and they can really trust Wonder trust that the process has been ended up and the number of you think you’ve processed because you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing which’s what you need you require specialists on the other end of the phone to process this and get it to where you get one of these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re discussing something actually crucial today the worker retention credit which the majority of you have never become aware of I certainly had not become aware of it up until extremely recently and found out a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder 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 just call up your bank supervisor 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 love this program it’s disappearing soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used services 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.
fix the money money payroll tax refund alright go on sorry I simply have to make certain we got that point I suggest that’s a huge distinction a loan versus cash money I like money money that’s what we’re talking about fine 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 real money from the IRS 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 worker so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you had to have owned a company but it’s based on you having W-2 workers 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per worker that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the employee’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s wage to a maximum of seven 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 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 five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal of money it is now there’s a caveat here the PPP cash would have to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average 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 staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial clearly now the huge concern is why does no one know about this due to the fact that look when I first became aware of this when I first fulfilled Josh you know I’ve got lots of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I do not believe it due to the fact that 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 which were well should have and we used them wisely to stay alive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even contacted us to my politician good friends Guv Senators they didn’t understand about it I suggest that’s how you know that’s how misinformation 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 true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s interesting you’re speaking about the banks Kevin since in the PPP loan process the federal government made it extremely 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 mayhem because keep in mind in the original cares act you might refrain from doing both programs so if you had actually done PPP you might not do ERC in the initial program and when they altered 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 made it clear to anyone about how to.
do this does your CFO know how to do this not actually she or he’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 business your accounting professional no your accountant’s never done this prior to unless you have an account that entered into this company and bottom line my company Kevin has actually been in business since 2009 and we have actually been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big big business clients have dealt with bottom line to recuperate other federal government programs we have actually 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 worker retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, company whose business is fully or partly suspended.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The meaning of qualifying wages differs by whether a company had, on average, basically than.
100 workers in 2019.
Business that specialize in ERC filing assistance typically supply expertise and support to assist services browse the complicated procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Do Churches Qualify For The Employee Retention Credit
Eligibility Assessment: These companies will assess your organization’s eligibility for the ERC based on aspects such as your industry, income, and operations. If you meet the requirements for the credit and recognize the maximum credit quantity you can claim, they can assist identify.
Documents and Computation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit quantity based on eligible salaries and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize prospective chances for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the necessary forms and documents on your behalf. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually progressed with time. These business stay upgraded with the most recent changes and guarantee that your filings adhere to the most current standards. They can also provide ongoing assistance if the IRS requests extra info or performs an audit related to your ERC claim.
It is very important to research study and vet any business using ERC filing support to ensure their credibility and know-how. Search for established firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax professionals who offer ERC submitting assistance.
Bear in mind that while these business can provide valuable assistance, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and ensure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to motivate companies to keep and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit companies, tax-exempt organizations, and specific governmental entities. To certify, companies need to fulfill one of two requirements:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As discussed previously, for 2021, a substantial 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 defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a portion (as much as 70%) of qualified salaries paid to employees, including certain health insurance 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: At first, organizations that got an Income Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they got a PPP loan. Nevertheless, the exact same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, allowing qualified companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work tax returns, generally Form 941. The excess can be reimbursed to the employer if the credit surpasses the quantity of employment taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have developed over time. The best strategy is to speak with a tax expert or go to the official IRS site for the most current and detailed info regarding the ERC, consisting of any current legal modifications or updates.
To qualify for the ERC, an organization needs to satisfy one of the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, federal government entities and companies that received a PPP loan may have constraints on claiming the credit.
The procedure for claiming the ERC includes completing the necessary forms and including the credit on your work income tax return (usually Type 941). The exact time it takes to process the credit can vary based upon numerous elements, including the complexity of your business and the work of the IRS. It’s advised to consult with a tax professional for guidance particular to your circumstance.
There are a number of business that can assist with the process of claiming the ERC. Some well-known companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based upon general knowledge and may not reflect the most recent updates or modifications to the ERC. It is very important to speak with a tax expert or visit the main IRS website for the most accurate and current details concerning eligibility, declaring procedures, and readily available support.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on salaries paid to all employees whether they actually worked or not. To put it simply, even if the.
workers worked full time and got paid for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members usually in 2019, then the credit is.
permitted only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not just cash payments however likewise a part of the cost of company.
offered health care. Do Churches Qualify For The Employee Retention Credit
Companies can be immediately repaid for the credit by decreasing the quantity of payroll taxes they.