Lets talk first about Employee Retention Credit 2017 Irs :
Our group here what do these guys doing everybody in this room is helping teach people about ERC and uh always offer a gorgeous breakfast and have individuals actually learn about the program we should head to the space where we are able to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I suggest 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 just I suggest think about 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 customer so that’s how you have the ability to track it you know when you
receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything up until they in fact receive the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they transfer it into their checking 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 have to do with 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 professionals 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 talking about something actually crucial today the employee retention credit which the majority of you have never heard of I definitely hadn’t become aware of it up until extremely just recently and learned a lot about it because this is probably the lowest cost of capital for any small business anywhere
anytime if you have workers between five 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 Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just contact your bank manager and say provide me a loan it does not work there’s not a loan it’s an application and Josh is going to inform 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 very soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money money payroll tax refund okay go on sorry I just need to make sure we got that point I suggest that’s a big distinction a loan versus cash money I like cash money 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 beautiful hard check in the mail where you get real money from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker retention credit that individual had to be an employee 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 an organization but it’s based on you having W-2 employees 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 have 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 proper so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part money 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 precise Kevin is 50 of the staff member’s salary to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to an optimum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because the turmoil of the pandemic so they wished to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of cash it is now there’s a caveat here the PPP money would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace 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 employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big obviously now the big question is why does nobody know about this due to the fact that appearance when I first heard about this when I first satisfied Josh you know I have actually got lots of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many many investments in business owners of which many suffered through the pandemic when I first heard about this I called BS I don’t think it due to the fact that I use 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 and that were well deserved and we utilized them carefully to stay alive during the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even called to my politician good friends Guv Senators they didn’t understand about it I mean that’s how you know that’s how false information is that there’s no info out there then a lot of individuals informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one understand about the employee retention credit you know what’s fascinating you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it really clear that if you wanted 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 mayhem due to the fact that keep in mind in the initial cares act you could refrain from doing both programs so if you had done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were not doing ERC because 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 understand how to do this not actually he or she’s never ever done it in the past do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this before unless you have an account that went into this organization and bottom line my company Kevin has actually stayed in business because 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our big big corporate clients have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use 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 staff member retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Since of COVID-19 or whose gross invoices, employer whose business is completely or partly suspended.
decline by more than 50%.
Availability.
1. The credit is readily available to all employers regardless of size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying incomes differs by whether an employer had, on average, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing help generally offer competence and assistance to help services navigate the complex process of claiming the credit. They can provide various services, including:.
How is the employee retention credit calculated? Employee Retention Credit 2017 Irs
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you fulfill the requirements for the credit and recognize the maximum credit quantity you can claim, they can assist determine.
Paperwork and Estimation: ERC filing services will assist in gathering the essential documents, such as payroll records and financial statements, to support your claim. They will also help determine the credit quantity based upon eligible earnings and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can examine your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you modify prior tax returns to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the essential types and documentation on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have actually evolved with time. These business remain updated with the latest changes and make sure that your filings abide by the most existing guidelines. They can also provide continuous assistance if the IRS requests extra information or carries out an audit related to your ERC claim.
It is necessary to research study and veterinarian any company providing ERC filing assistance to guarantee their credibility and knowledge. Look for established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who use ERC filing support.
Bear in mind that while these business can offer important support, it’s always a great idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified decisions and ensure accurate filings.
The Worker 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 companies to keep and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit services, tax-exempt companies, and certain governmental entities. To qualify, companies need to fulfill one of two criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As pointed out previously, for 2021, a substantial decline is specified 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 receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices 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 amounts to a percentage (up to 70%) of qualified earnings paid to workers, including specific health insurance costs. The optimum 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 received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they received a PPP loan. Nevertheless, the same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, enabling eligible employers to declare the credit for certified wages 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.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment tax returns, typically Type 941. The excess can be reimbursed to the company if the credit exceeds the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility requirements have developed gradually. The very best course of action is to consult with a tax professional or go to the official internal revenue service site for the most detailed and up-to-date details concerning the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, a company needs to meet among the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and businesses that got a PPP loan might have restrictions on claiming the credit.
The procedure for declaring the ERC includes finishing the needed forms and including the credit on your work tax return (generally Kind 941). The exact time it requires to process the credit can differ based upon numerous aspects, consisting of the complexity of your organization and the work of the IRS. It’s advised to consult with a tax professional for assistance specific to your scenario.
There are a number of business that can assist with the process of claiming the ERC. Some well-known business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on general knowledge and might not show the most current updates or changes to the ERC. It’s important to talk to a tax expert or visit the official internal revenue service site for the most accurate and up-to-date info concerning eligibility, claiming procedures, and available help.
Less than 100. If the employer had 100 or fewer employees on average in 2019, then the credit is based.
on wages paid to all employees whether they actually worked or not. Simply put, even if the.
employees worked full time and earned 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.
allowed just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not just cash payments but also a portion of the cost of company.
offered healthcare. Employee Retention Credit 2017 Irs
Payment.
Employers can be instantly repaid for the credit by decreasing the amount of payroll taxes they.