Lets talk first about Employee Retention Credit 50 :
Our team here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly provide a stunning breakfast and have people actually find out about the program we ought to head to the space where we are able to display a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I indicate you know if you just begin to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I suggest think of 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 confirmed and the check is on the mail in the mail from the internal revenue service 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 chosen sure and that’s when they pay so they don’t pay anything until they really get the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the method they deposit it into their bank account and they can really rely on Wonder trust that the procedure has actually been completed and how many you believe you’ve processed since 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 require 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 speaking about something truly crucial today the worker retention credit which the majority of you have never become aware of I definitely hadn’t heard of it till extremely recently and discovered a lot about it because this is probably the most affordable cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply phone your bank manager and say give me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I enjoy this program it’s going away soon you got to find out everything about it let’s talk employee 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 used companies 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 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 cash money payroll tax refund fine go on sorry I just have to ensure we got that point I mean that’s a big distinction a loan versus cash cash I like money cash that’s what we’re discussing alright 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 difficult 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 staff member retention credit that person needed to be an employee so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have owned an organization however it’s based on you having W-2 employees in America not 10.99. 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 very first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that the turmoil 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 approximately five thousand Max and after that what happens 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 6 thousand dollars per worker that is because that’s a lot of money it is now there’s a caution here the PPP money would have to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace 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 employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial obviously now the big concern is why does no one know about this due to the fact that appearance when I first found out about this when I initially satisfied Josh you understand I’ve got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of many financial investments in business owners of which lots of suffered through the pandemic when I initially heard about this I called BS I don’t believe it since I use the PPP we went through the cash 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 should have and we used them sensibly to survive during the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician friends Guv Senators they didn’t know about it I suggest that’s how you understand that’s how false information 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 likewise not real so let’s ask Josh why does no one know about the employee retention credit you know what’s fascinating you’re speaking about the banks Kevin since 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 big banks in our country and they would process process 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 chaos since remember in the original cares act you could refrain from doing both programs so if you had 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 any person about how to.
do this does your CFO know how to do this not truly she or he’s never ever done it before 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 accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this company and bottom line my firm Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our big big business clients have worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Because of COVID-19 or whose gross receipts, company whose service is totally or partially suspended.
decline by more than 50%.
Availability.
1. The credit is readily available to all companies no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is fully or partly 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.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether an employer had, typically, more or less than.
100 staff members in 2019.
Business that concentrate on ERC filing help typically provide know-how and support to help businesses browse the complicated process of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit 50
Eligibility Evaluation: These business will evaluate your company’s eligibility for the ERC based on elements such as your industry, earnings, and operations. If you fulfill the requirements for the credit and determine the optimum credit amount you can declare, they can help identify.
Documents and Calculation: ERC filing services will assist in collecting the required paperwork, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit quantity based upon eligible earnings and other qualifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these companies can review your past payroll records and financials to identify prospective opportunities for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and submit the necessary types and documents in your place. This consists of completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have developed with time. These companies stay upgraded with the latest modifications and guarantee that your filings comply with the most present guidelines. They can also supply ongoing support if the IRS requests extra information or performs an audit related to your ERC claim.
It’s important to research study and vet any company using ERC filing help to ensure their trustworthiness and know-how. Look for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who use ERC filing assistance.
Bear in mind that while these business can supply important assistance, it’s always a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate companies to retain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers should fulfill one of two criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. As mentioned earlier, for 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant 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 immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a percentage (approximately 70%) of qualified earnings paid to staff members, consisting of specific health plan costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that got a Paycheck 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. However, the very same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and enhanced, permitting eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers an opportunity for companies to amend prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Type 941. The excess can be refunded to the employer if the credit goes beyond the quantity of work taxes owed.
It’s important to note that the ERC provisions and eligibility requirements have developed in time. The best course of action is to seek advice from a tax professional or check out the official internal revenue service site for the most detailed and current info relating to the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, a business must meet 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 considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. For instance, government entities and businesses that received a PPP loan might have limitations on claiming the credit.
The process for claiming the ERC includes finishing the necessary kinds and consisting of the credit on your employment tax return (normally Type 941). The exact time it takes to process the credit can differ based upon several elements, consisting of the intricacy of your organization and the work of the internal revenue service. It’s recommended to consult with a tax expert for guidance specific to your scenario.
There are a number of companies that can help with the procedure of claiming the ERC. Some popular companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based on general understanding and may not show the most recent updates or modifications to the ERC. It is very important to seek advice from a tax professional or visit the main internal revenue service website for the most precise and up-to-date information regarding eligibility, declaring treatments, and offered help.
Less than 100. If the employer had 100 or less workers on average in 2019, then the credit is based.
on incomes paid to all staff members whether they really worked or not. To put it simply, 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 company had more than 100 employees on average in 2019.
enabled only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “wages” includes not simply money payments but also a part of the expense of company.
supplied healthcare. Employee Retention Credit 50
Payment.
Companies can be instantly reimbursed for the credit by decreasing the quantity of payroll taxes they.