Lets talk first about Employee Retention Credit Caa :
Our group here what do these guys doing everyone in this room is assisting teach people about ERC and uh always provide a gorgeous breakfast and have people really find out about the program we ought to head to the room where we have the ability to show some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I indicate you understand if you just begin to take a 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 mean it’s simply I suggest consider 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 IRS heading to the client so that’s how you have the ability to track it you know when you
receive this you know the check is chosen sure and that’s when they pay so they do not pay anything till they really receive the cash they don’t 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 truly trust Wonder trust that the process has been ended up and how many you think you’ve processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’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 Fantastic here you’re at my YouTube channel we’re talking about something really important today the employee retention credit which most of you have actually never ever heard of I definitely hadn’t heard of it till really recently and discovered a lot about it because this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have workers in between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 just call your bank supervisor and say 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 ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away very soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money money payroll tax refund all right go on sorry I just need to make sure we got that point I imply that’s a huge distinction a loan versus cash cash I like cash money that’s what we’re speaking about okay 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 cash from the internal revenue service all right so let’s discuss how it works due to the fact that it seems 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 money 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 a business but it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible so you need to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to an optimum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus because 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 as much as 5 thousand Max and after that 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 employee that is since that’s a lot of money it is now there’s a caution here the PPP money would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual 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 cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial certainly now the huge concern is why does nobody know about this because appearance when I first became aware of this when I first met Josh you know 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 lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t think it due to the fact that I utilize the PPP we went through the money 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 should have and we used them wisely to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician friends Governor Senators they didn’t learn about it I imply that’s how you know that’s how misinformation is that there’s no information out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s intriguing you’re speaking about the banks Kevin since in the PPP loan procedure 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 huge banks in our nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was chaos due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had actually done PPP you might not do ERC in the original 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 ever made it clear to anyone about how to.
do this does your CFO understand how to do this not really he or she’s never done it previously do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accountant’s never ever done this prior to unless you have an account that went into this business and bottom line my firm Kevin has stayed in business considering that 2009 and we’ve been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our big huge business customers have dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, employer whose company is completely or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes differs by whether an employer had, typically, more or less than.
100 employees in 2019.
Business that focus on ERC filing help usually offer expertise and assistance to help businesses navigate the complex process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Caa
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based on aspects such as your market, revenue, and operations. If you meet the requirements for the credit and determine the optimum credit amount you can declare, they can help figure out.
Documents and Calculation: ERC filing services will assist in collecting the essential documents, such as payroll records and financial declarations, to support your claim. They will likewise assist determine the credit amount based on eligible earnings and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can review your past payroll records and financials to identify prospective chances for retroactive credits. They can help you change previous tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the needed kinds and paperwork in your place. This includes finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually progressed over time. These business stay upgraded with the latest changes and make sure that your filings adhere to the most present standards. They can also supply ongoing support if the internal revenue service requests additional info or carries out an audit related to your ERC claim.
It is essential to research study and vet any business using ERC filing help to ensure their reliability and expertise. Search for recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax specialists who provide ERC filing support.
Keep in mind that while these companies can provide valuable help, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate organizations to keep and pay their staff members during 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 employers, including for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, companies should meet one of two requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As pointed out previously, for 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified 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 instantly 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 percentage (as much as 70%) of certified salaries paid to employees, including specific 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, businesses that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. The same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, permitting qualified companies to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for businesses to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Type 941. The excess can be reimbursed to the company if the credit goes beyond the amount of work taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have actually progressed over time. The very best strategy is to seek advice from a tax professional or go to the official IRS website for the most detailed and current info regarding the ERC, including any current legislative modifications or updates.
To receive the ERC, a business must satisfy one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a substantial 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 defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt organizations, but there are some exceptions. For example, federal government entities and businesses that got a PPP loan might have restrictions on claiming the credit.
The process for claiming the ERC involves completing the essential kinds and consisting of the credit on your work tax return (typically Type 941). The exact time it requires to process the credit can vary based upon a number of elements, consisting of the intricacy of your business and the work of the internal revenue service. It’s advised to consult with a tax professional for assistance specific to your circumstance.
There are a number of companies that can aid with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some widely known companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these companies straight to inquire about their services and charges.
Please note that the info supplied here is based upon basic knowledge and might not reflect the most recent updates or changes to the ERC. It is very important to consult with a tax professional or check out the official internal revenue service site for the most up-to-date and precise info concerning eligibility, claiming treatments, and available support.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on wages paid to all workers whether they really worked or not. Simply put, even if the.
staff members worked full time and got paid for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
allowed just for earnings paid to employees who did not work during the calendar quarter.
In both cases, “wages” consists of not just money payments however also a part of the expense of employer.
provided health care. Employee Retention Credit Caa
Companies can be immediately repaid for the credit by lowering the amount of payroll taxes they.