Lets talk first about Does The Employee Retention Credit Apply To Part Time Employees :
Our team here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have individuals actually learn more about the program we need to head to the space 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 hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I imply you understand 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 suggest it’s just I indicate think about how many real customers that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you know when you
get this you understand the check is chosen sure which’s when they pay so they do not pay anything till they in fact get the cash they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their checking account and they can truly rely on Wonder trust that the process has been finished and how many you believe you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you require you need 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 discussing something really crucial today the employee retention credit which most of you have never ever heard of I certainly hadn’t become aware of it till very recently and discovered a lot about it because this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have staff members 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 Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply phone 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 have actually 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 worker retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund all right go on sorry I simply have to ensure 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 speaking 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 initial cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get real cash from the IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s staff member retention credit that person had to be a staff member 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 workers right you needed to have owned a company but it’s based on you having W-2 staff members 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 qualified so you need to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 correct 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 two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my favorite part money just how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the employee’s salary to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s salary to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the mayhem 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 up to 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city 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 big undoubtedly now the huge question is why does no one learn about this since look when I initially became aware of this when I initially fulfilled Josh you understand I’ve got lots of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I do not believe it due to the fact that I use the PPP we went through the cash 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 carefully to survive 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 contacted us to my political leader good friends Governor Senators they didn’t understand 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 informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s interesting you’re speaking about the banks Kevin because 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was turmoil because remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO know how to do this not actually she or he’s never ever done it in the past do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll business 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 firm Kevin has stayed in business because 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate customers have worked with bottom line to recuperate other government programs we have actually done sales tax and use tax unemployment 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 developed to encourage.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
company whose company is completely or partly suspended because of COVID-19 or whose gross invoices.
decline 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 local governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the equivalent quarter in 2019. Once the.
employer’s gross invoices go above 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 salaries paid up to $10,000 in overall.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of certifying salaries differs by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that specialize in ERC filing support typically offer proficiency and support to help businesses navigate the complicated process of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? Does The Employee Retention Credit Apply To Part Time Employees
Eligibility Assessment: These companies will evaluate your service’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you meet the requirements for the credit and recognize the optimum credit quantity you can claim, they can help determine.
Documents and Calculation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit amount based upon eligible salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can evaluate your previous payroll records and financials to identify prospective opportunities for retroactive credits. They can help you change prior tax returns to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and send the needed kinds and paperwork on your behalf. This includes finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed over time. These business remain updated with the most recent changes and ensure that your filings abide by the most existing standards. They can likewise supply continuous support if the internal revenue service demands additional information or performs an audit related to your ERC claim.
It is very important to research and vet any business providing ERC filing support to ensure their trustworthiness and know-how. Try to find recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax experts who use ERC filing support.
Remember that while these companies can provide important assistance, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will help you make notified choices and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented 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 impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers must fulfill one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As discussed earlier, for 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices 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 quantity is equal to a percentage (up to 70%) of certified earnings paid to workers, including certain health plan costs. 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: Initially, companies that received an Income Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they got a PPP loan. The exact same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, enabling qualified companies to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, normally Kind 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have actually developed in time. The best strategy is to talk to a tax expert or visit the main internal revenue service website for the most detailed and updated information relating to the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a business should satisfy among the following requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, federal government entities and services that got a PPP loan might have constraints on declaring the credit.
The procedure for claiming the ERC involves completing the necessary types and including the credit on your employment tax return (generally Form 941). The exact time it takes to process the credit can differ based upon a number of elements, including the complexity of your company and the work of the internal revenue service. It’s advised to seek advice from a tax expert for assistance particular to your situation.
There are numerous business that can aid with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some widely known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and call these companies straight to ask about their charges and services.
Please keep in mind that the information supplied here is based on general understanding and might not show the most recent updates or changes to the ERC. It is very important to consult with a tax expert or go to the main internal revenue service website for the most accurate and current info concerning eligibility, claiming procedures, and offered assistance.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on wages paid to all employees whether they actually worked or not. In other words, even if the.
staff members worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
permitted just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not just money payments however likewise a portion of the expense of company.
supplied health care. Does The Employee Retention Credit Apply To Part Time Employees
Companies can be instantly reimbursed for the credit by reducing the amount of payroll taxes they.