Lets talk first about Employee Retention Credit Bill :
Our group here what do these men doing everybody in this room is assisting teach individuals about ERC and uh always offer a lovely breakfast and have individuals actually discover the program we need to head to the space where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients confirming that the check is on the method I indicate you understand if you simply begin to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I imply think of the number of 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 verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything up until they really receive the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the way they deposit it into their savings account and they can really rely on Wonder trust that the process has been ended up and how many you think you’ve processed since you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly 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 speaking about something truly important today the employee retention credit which most of you have never become aware of I definitely hadn’t heard of it until very recently and learned a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Ideas 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 simply call your bank manager and state 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’ve 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 employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided organizations three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I just have to make certain we got that point I imply that’s a big distinction a loan versus money money I like cash 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 since 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 staff members right you had to have actually owned a service 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 eligible 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 proper so there were 6 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 two and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my preferred part money how much can you get back per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of seven thousand per quarter how did that take place um they just changed 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 workers 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 then what happens 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a great deal of money it is now there’s a caution 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 two you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s big obviously now the big concern is why does nobody know about this due to the fact that appearance when I initially found out about this when I initially fulfilled Josh you understand I’ve got lots of financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many numerous investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I do not believe it due to the fact that I utilize the PPP we went through the money 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 been worthy of and we used them carefully to stay alive throughout the pandemic so when I heard about this I stated nah it can’t be true however when I dug around I even contacted us to my political leader pals Governor Senators they didn’t know about it I indicate 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 because you took the PPP also not real so let’s ask Josh why does no one understand about the employee 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 very clear that if you desired 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 simply process procedure that’s all um and here there was mayhem since remember in the initial cares act you could not do both programs so if you had actually done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC since 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 really she or he’s never done it before do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accountant’s never done this prior to unless you have an account that went into this business and bottom line my company Kevin has been in business considering that 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big huge business clients have actually worked with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose service is completely or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is readily available to all employers no matter size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the company 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 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.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Companies that focus on ERC filing support normally supply knowledge and support to help services browse the intricate process of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Bill
Eligibility Evaluation: These companies will examine your service’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can claim, they can help figure out.
Paperwork and Estimation: ERC filing services will assist in collecting the essential documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit quantity based upon eligible earnings and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to determine possible chances for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the required kinds and paperwork on your behalf. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have developed in time. These companies stay upgraded with the current changes and make sure that your filings adhere to the most current standards. They can likewise provide continuous assistance if the internal revenue service requests extra information or performs an audit related to your ERC claim.
It’s important to research and veterinarian any company providing ERC filing help to ensure their reliability and proficiency. Search for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax experts who offer ERC submitting support.
Bear in mind that while these business can provide valuable assistance, it’s constantly a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to motivate companies to maintain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, employers must fulfill one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away 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 portion (as much as 70%) of certified earnings paid to workers, consisting of particular health plan 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, services that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they received a PPP loan. However, the very same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, allowing eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for businesses to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Form 941. The excess can be refunded to the company if the credit exceeds the amount of work taxes owed.
It is necessary to note that the ERC arrangements and eligibility criteria have actually evolved with time. The very best strategy is to consult with a tax expert or visit the official IRS website for the most detailed and up-to-date information relating to the ERC, including any recent legislative changes or updates.
To qualify for the ERC, a service must meet one of the following requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline 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.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt companies, however there are some exceptions. Federal government entities and organizations that got a PPP loan may have constraints on declaring the credit.
The procedure for declaring the ERC includes completing the essential forms and including the credit on your work tax return (typically Kind 941). The exact time it takes to process the credit can differ based upon a number of aspects, consisting of the complexity of your business and the workload of the IRS. It’s recommended to talk to a tax expert for assistance specific to your circumstance.
There are several companies that can assist with the procedure of declaring the ERC. Some widely known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based on basic understanding and may not reflect the most recent updates or modifications to the ERC. It’s important to talk to a tax expert or visit the main IRS website for the most up-to-date and precise information regarding eligibility, claiming treatments, and available help.
Less than 100. If the employer had 100 or less workers typically in 2019, then the credit is based.
on incomes paid to all workers whether they in fact worked or not. In other words, even if the.
workers worked full time and got paid for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 workers usually in 2019, then the credit is.
allowed only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not simply money payments however likewise a portion of the cost of company.
supplied healthcare. Employee Retention Credit Bill
Employers can be immediately reimbursed for the credit by lowering the quantity of payroll taxes they.