Lets talk first about Employee Retention Credit Delays :
Our group here what do these people doing everyone in this room is helping teach individuals about ERC and uh always offer a beautiful breakfast and have individuals really find out about the program we should head to the space where we have the ability to show a few of the checks that we are getting for business and I want to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I suggest you know if you simply begin to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest think about how many actual clients 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 understand when you
get 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 cash they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they transfer it into their checking account and they can genuinely rely on Wonder trust that the process has actually been finished and how many you think you’ve processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you require 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 Terrific here you’re at my YouTube channel we’re speaking about something really important today the worker retention credit which the majority of you have actually never ever heard of I definitely had not heard of it until really just recently and learned a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply phone your bank supervisor and say offer me a loan it doesn’t 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 like this program it’s going away very soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided services three 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 precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund all right go on sorry I simply need to make sure we got that point I mean that’s a big distinction a loan versus money money I like cash money that’s what we’re talking about 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real money from the internal revenue service all right so let’s talk about how it works since it seems like to me if it’s a if it’s worker retention credit that person had to be an employee so I’m going to make the Presumption this money 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 actually owned an organization but it’s based upon 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 very first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the turmoil of the pandemic so they wanted to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 up to five thousand Max and after that 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 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of cash it is now there’s a caveat here the PPP money 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 usually Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant 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 internal revenue service so it’s huge undoubtedly now the huge concern is why does no one know about this because look when I initially heard about this when I initially met Josh you know I have actually got lots of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make lots of many investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t think 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 which were well been worthy of and we used them wisely to stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my political leader friends Guv Senators they didn’t know 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 employee retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan procedure 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 big 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 turmoil since keep in mind in the original cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the initial 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 government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’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 company your accounting professional no your accountant’s never ever done this prior to unless you have an account that entered into this service and bottom line my company Kevin has been in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate clients have worked with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose service is totally or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Schedule.
1. The credit is readily available to all companies regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar 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 the end of that quarter.
Estimation of the Credit.
The amount 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 certifying incomes differs by whether a company had, usually, basically than.
100 employees in 2019.
Business that concentrate on ERC filing assistance generally offer knowledge and assistance to help businesses browse the intricate procedure of claiming the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Delays
Eligibility Assessment: These business will examine your service’s eligibility for the ERC based on factors such as your market, profits, and operations. They can assist determine if you satisfy the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Estimation: ERC filing services will help in gathering the necessary paperwork, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit quantity based on qualified earnings and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can examine your past payroll records and financials to recognize potential opportunities for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the needed kinds and documentation in your place. This consists of finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have evolved over time. These business stay updated with the most recent changes and guarantee that your filings abide by the most existing standards. If the Internal revenue service requests extra information or conducts an audit related to your ERC claim, they can also supply continuous assistance.
It is essential to research study and veterinarian any business offering ERC filing assistance to guarantee their trustworthiness and proficiency. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who provide ERC filing assistance.
Keep in mind that while these companies can provide important support, it’s constantly a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage services to maintain and pay their employees during 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 certain governmental entities. To qualify, companies must fulfill one of two requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As pointed out previously, for 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly 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 portion (approximately 70%) of certified salaries paid to employees, consisting of particular health plan expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. The same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and enhanced, enabling qualified employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, typically Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the employer.
It is essential to keep in mind that the ERC arrangements and eligibility criteria have progressed gradually. The very best course of action is to consult with a tax expert or visit the official internal revenue service website for the most updated and in-depth details relating to the ERC, including any current legislative modifications or updates.
To receive the ERC, a company needs to meet among the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a substantial decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, government entities and companies that received a PPP loan might have restrictions on declaring the credit.
The procedure for claiming the ERC includes finishing the needed types and including the credit on your work income tax return (generally Form 941). The exact time it takes to process the credit can vary based on numerous factors, consisting of the complexity of your organization 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 numerous companies that can aid with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known business that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these business directly to inquire about their fees and services.
Please keep in mind that the information provided here is based upon basic knowledge and might not show the most current updates or modifications to the ERC. It is essential to speak with a tax expert or go to the official IRS site for the most accurate and current details concerning eligibility, claiming procedures, and readily available assistance.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on wages paid to all staff members whether they in fact 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. If the employer had more than 100 staff members on average in 2019, then the credit is.
enabled just for wages paid to employees who did not work during the calendar quarter.
In both cases, “wages” consists of not simply money payments but likewise a portion of the expense of company.
supplied healthcare. Employee Retention Credit Delays
Payment.
Employers can be right away reimbursed for the credit by minimizing the amount of payroll taxes they.