Lets talk first about Employee Retention Credit Details :
Our group here what do these men doing everybody in this room is helping teach individuals about ERC and uh always offer a lovely breakfast and have individuals truly learn about the program we need to head to the room where we have the ability to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous countless dollars actually 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 way I imply you know if you simply start to look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I imply think about the number of actual customers 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 verified and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you’re able to track it you know when you
get this you understand the check is gone for sure which’s when they pay so they do not pay anything until they actually get the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they deposit it into their bank account and they can truly rely on Wonder trust that the procedure has been finished and how many you think you’ve processed considering that you started 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 Wonderful here you’re at my YouTube channel we’re discussing something really crucial today the worker retention credit which the majority of you have actually never ever become aware of I definitely hadn’t become aware of it until really recently and discovered a lot about it since this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply contact your bank manager and state give me a loan it doesn’t 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 have actually ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered organizations 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 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 cash payroll tax refund all right go on sorry I just need to make certain we got that point I imply that’s a huge difference a loan versus money money I like money 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 beautiful difficult check in the mail where you get actual cash 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 employee retention credit that individual 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 employees right you needed to have owned a company but 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 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 2 3 and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my preferred part money how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s salary to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the turmoil of the pandemic so they wanted 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 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a great deal of money it is now there’s a caveat here the PPP money would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say 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 internal revenue service so it’s huge obviously now the huge question is why does nobody know about this because look when I first heard about this when I initially met Josh you know I have actually got great deals of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of 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 due to the fact that I utilize 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 deserved and we utilized them wisely to stay alive during the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even contacted us to my political leader pals Governor Senators they didn’t understand about it I mean that’s how you know that’s how misinformation is that there’s no details out there then a bunch of people told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one know about the worker retention credit you know what’s interesting you’re talking about the banks Kevin since in the PPP loan process the federal government made it extremely 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 just procedure procedure that’s all um and here there was turmoil due to the fact that keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you might not do 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 any person about how to.
do this does your CFO know how to do this not really he or she’s never done it previously 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 ever done this prior to unless you have an account that entered into this service and bottom line my firm Kevin has actually stayed in business because 2009 and we have actually been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have worked with bottom line to recuperate other federal government programs we have actually 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 staff member retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose business is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. When the.
employer’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for salaries 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 workers in 2019.
Business that specialize in ERC filing help typically provide proficiency and support to assist organizations browse the intricate process of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Details
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based upon elements such as your market, income, and operations. If you meet the requirements for the credit and identify the optimum credit quantity you can declare, they can help figure out.
Documents and Calculation: ERC filing services will assist in gathering the required paperwork, such as payroll records and financial statements, to support your claim. They will likewise assist calculate the credit amount based upon eligible salaries and other qualifying expenses.
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 identify potential chances for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and submit the necessary types and documentation on your behalf. This includes finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have actually evolved with time. These business remain updated with the latest modifications and guarantee that your filings adhere to the most existing standards. They can also supply ongoing assistance if the IRS requests additional info or conducts an audit related to your ERC claim.
It is very important to research and vet any company offering ERC filing support to ensure their trustworthiness and proficiency. Look for recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax professionals who use ERC filing assistance.
Bear in mind that while these companies can offer important support, it’s always a great concept to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and ensure 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 procedures. The goal of the ERC is to encourage services to retain and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, consisting of for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, companies need to fulfill one of two requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As pointed out previously, for 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the exact 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 (approximately 70%) of qualified earnings paid to staff members, including particular health insurance expenditures. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they received a PPP loan. The same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, enabling eligible companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment tax returns, usually Type 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the company.
It is very important to keep in mind that the ERC provisions and eligibility requirements have developed in time. The very best course of action is to speak with a tax professional or visit the official IRS website for the most current and in-depth info concerning the ERC, including any recent legislative changes or updates.
To receive the ERC, a company should satisfy one of the following criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease 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 services of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and services that got a PPP loan may have restrictions on claiming the credit.
The process for claiming the ERC includes completing the necessary kinds and consisting of the credit on your work tax return (typically Type 941). The exact time it takes to process the credit can vary based on numerous factors, including the intricacy of your service and the work of the internal revenue service. It’s advised to consult with a tax professional for assistance specific to your scenario.
There are a number of companies that can help with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll provider. Some well-known companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and get in touch with these business straight to ask about their services and fees.
Please note that the information offered here is based upon basic understanding and might not reflect the most current updates or modifications to the ERC. It’s important to speak with a tax professional or go to the main IRS site for the most current and precise information regarding eligibility, claiming treatments, and readily available help.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on incomes paid to all workers 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 company still gets the credit.
Greater than 100. If the company had more than 100 staff members on average in 2019, then the credit is.
permitted only for wages paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply cash payments however likewise a portion of the expense of company.
supplied health care. Employee Retention Credit Details
Companies can be immediately compensated for the credit by decreasing the quantity of payroll taxes they.