Lets talk first about Employee Retention Credit 2022 Scam :
Our team here what do these people doing everybody in this space is assisting teach individuals about ERC and uh always supply a stunning breakfast and have individuals truly find out about the program we must head to the space where we are able to display some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars actually 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 understand if you just begin 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 imply it’s simply I imply think about 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 opted for sure and that’s when they pay so they don’t pay anything until they actually get the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their savings account and they can truly trust Wonder trust that the procedure has been completed and the number of you believe you have actually processed given that you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’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 talking about something truly crucial today the worker retention credit which the majority of you have never ever become aware of I definitely had not heard of it till very just recently and found out a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I’ve got the expert 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 challenging this isn’t like PPP we just contact your bank manager and state give me a loan it doesn’t 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’ve ended up being yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there two 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 fine go on sorry I just have to make sure we got that point I indicate that’s a huge difference a loan versus money money I like money 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 initial cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get actual cash from the internal revenue service 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 person needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have actually owned a company but it’s based upon 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 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 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my preferred part cash just how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the chaos 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 5 thousand Max and then 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 five thousand in twenty twenty that’s twenty six 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 cash would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New York 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 IRS so it’s huge obviously now the huge question is why does nobody understand about this since look when I initially became aware of this when I initially satisfied Josh you know I’ve got lots of investments in great deals of business I’m a major advocate for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe it because I use 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 and that were well should have and we used them carefully to survive during the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t learn about it I imply that’s how you understand that’s how misinformation is that there’s no information out there then a lot of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody know 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 really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was chaos due to the fact that remember in the original cares act you could refrain from doing both programs so if you had 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 since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO know how to do this not actually she or he’s never 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 prior to unless you have an account that entered into this organization and bottom line my company Kevin has actually stayed in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big corporate customers have actually dealt with bottom line to recover 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 property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
employer whose organization is totally or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partially 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. When the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
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 salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings differs by whether a company had, typically, more or less than.
100 staff members in 2019.
Companies that concentrate on ERC filing help typically provide know-how and support to help companies browse the intricate procedure of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit 2022 Scam
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based on factors such as your industry, profits, and operations. If you meet the requirements for the credit and determine the maximum credit amount you can declare, they can assist figure out.
Documentation and Estimation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and financial statements, to support your claim. They will likewise help compute the credit amount based on qualified earnings and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can evaluate your past payroll records and financials to identify potential opportunities for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the necessary forms and documentation on your behalf. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have developed gradually. These companies remain upgraded with the latest modifications and ensure that your filings abide by the most current standards. If the IRS demands extra info or carries out an audit related to your ERC claim, they can likewise offer continuous support.
It’s important to research study and veterinarian any business using ERC filing help to guarantee their credibility and know-how. Look for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax experts who offer ERC filing assistance.
Remember that while these business can offer valuable assistance, it’s always a great idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate companies to maintain and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit services, tax-exempt organizations, and specific governmental entities. To certify, employers should satisfy one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As discussed earlier, for 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the very 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 invoices compared to the immediately 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 (approximately 70%) of qualified salaries paid to workers, including certain health insurance expenses. 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, businesses that got an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they received a PPP loan. The exact same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, enabling eligible companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers a chance for services to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, normally Kind 941. The excess can be refunded to the company if the credit goes beyond the amount of employment taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have actually progressed over time. The very best course of action is to consult with a tax expert or go to the main internal revenue service site for the most updated and in-depth information concerning the ERC, consisting of any current legislative changes or updates.
To receive the ERC, an organization must fulfill one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. 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 significant decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and organizations that received a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC involves completing the necessary types and consisting of the credit on your work tax return (generally Type 941). The exact time it takes to process the credit can vary based on numerous elements, consisting of the intricacy of your organization and the workload of the internal revenue service. It’s suggested to consult with a tax expert for guidance specific to your circumstance.
There are a number of business that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these companies directly to inquire about their services and charges.
Please note that the info offered here is based on basic understanding and might not show the most current updates or modifications to the ERC. It is very important to seek advice from a tax professional or check out the main internal revenue service website for the most current and precise information concerning eligibility, claiming treatments, and readily available support.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on salaries paid to all employees whether they in fact 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. The credit is if the company had more than 100 workers on average in 2019.
permitted only for earnings paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not just money payments but likewise a portion of the expense of company.
provided health care. Employee Retention Credit 2022 Scam
Companies can be immediately compensated for the credit by decreasing the amount of payroll taxes they.