Lets talk first about Employee Retention Credit Deadline :
Our group here what do these people doing everybody in this room is assisting teach people about ERC and uh constantly provide a lovely breakfast and have individuals actually discover the program we need to head to the room 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 literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I suggest you know if you just start to take a look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I suggest think of the number of real clients 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 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 gone for sure which’s when they pay so they don’t pay anything up until they really get the money they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their checking account and they can truly rely on Wonder trust that the procedure has been finished and the number of you think you’ve processed because you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you need you need specialists 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 discussing something actually important today the employee retention credit which the majority of you have never ever become aware of I definitely had not become aware of it till very recently and found out a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have workers between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply phone your bank manager and state offer 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 have actually ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to learn all about it let’s talk staff member 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 used organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund okay go on sorry I just need to make certain we got that point I indicate that’s a huge difference a loan versus cash cash I like cash cash that’s what we’re speaking 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 original cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s worker retention credit that person needed to be a worker 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 staff members right you had to have owned an organization but it’s based on 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 eligible so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 months of 2021 on the W-2 correct 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. fine 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 cash how much can you return per staff member 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 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 worker’s wage to an optimum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus since the turmoil of the pandemic so they wanted 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 as much as five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caveat here the PPP cash would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around ten thousand dollars a person 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 money you would still get a million dollar in the mail from the IRS so it’s big clearly now the big question is why does no one know about this due to the fact that appearance when I initially found out about this when I initially satisfied Josh you understand I have actually got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make lots of numerous investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I don’t think it due to the fact that 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 which were well should have and we utilized them wisely to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even contacted us to my political leader pals Guv 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 lot of individuals told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody understand about the employee retention credit you know 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 nation and they would process process 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 mayhem since remember in the original cares act you might refrain from doing both programs so if you had done PPP you might not do ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not really she or he’s never ever done it before 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 done this prior to unless you have an account that went into this business and bottom line my firm Kevin has stayed in business because 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 lot of our big big corporate clients have worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
employer whose service is fully or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is readily available to all companies no matter size including tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying salaries varies by whether an employer had, typically, basically than.
100 employees in 2019.
Companies that specialize in ERC filing support generally provide proficiency and assistance to assist organizations navigate the intricate procedure of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Deadline
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based on aspects such as your market, profits, and operations. If you meet the requirements for the credit and identify the maximum credit amount you can declare, they can help determine.
Paperwork and Estimation: ERC filing services will help in collecting the necessary documents, such as payroll records and financial statements, to support your claim. They will likewise help calculate the credit amount based on eligible wages and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the essential types and documents in your place. This consists of completing Kind 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have developed in time. These companies remain updated with the latest changes and guarantee that your filings adhere to the most current guidelines. If the IRS requests extra details or carries out an audit associated to your ERC claim, they can also offer ongoing support.
It’s important to research study and vet any business offering ERC filing help to guarantee their reliability and expertise. Search for recognized firms with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax professionals who offer ERC filing assistance.
Remember that while these companies can provide important support, it’s always a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage organizations to maintain and pay their workers during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit services, tax-exempt organizations, and certain governmental entities. To certify, companies should meet one of two requirements:.
The 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 mentioned previously, for 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (as much as 70%) of certified incomes paid to staff members, consisting of specific health insurance costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they received a PPP loan. The exact same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, permitting qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to change prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, normally Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be reimbursed to the company.
It’s important to keep in mind that the ERC provisions and eligibility requirements have evolved gradually. The best course of action is to talk to a tax expert or go to the main internal revenue service site for the most detailed and updated info relating to the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a service must meet one of the following criteria:.
Business operations were totally 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 defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease 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.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and companies that got a PPP loan might have limitations on declaring the credit.
The process for declaring the ERC involves completing the needed types and including the credit on your work tax return (generally Type 941). The exact time it requires to process the credit can differ based on numerous aspects, including the complexity of your service and the workload of the internal revenue service. It’s suggested to consult with a tax professional for guidance particular to your situation.
There are several companies that can help with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some widely known business that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these companies directly to ask about their fees and services.
Please note that the information offered here is based on general understanding and may not show the most current updates or modifications to the ERC. It’s important to talk to a tax professional or visit the official internal revenue service website for the most precise and updated info concerning eligibility, claiming procedures, and available assistance.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on wages paid to all staff members whether they really worked or not. To put it simply, 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 usually in 2019, then the credit is.
enabled just for salaries paid to employees who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but likewise a part of the expense of company.
provided health care. Employee Retention Credit Deadline
Companies can be right away reimbursed for the credit by lowering the amount of payroll taxes they.