Lets talk first about Employee Retention Credit Ending Early :
Our team here what do these people doing everyone in this room is assisting teach people about ERC and uh constantly provide a lovely breakfast and have people really discover the program we ought to head to the space where we are able to show some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I imply you understand 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 mean it’s just I suggest think about how many actual customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you understand when you
get this you know the check is opted for sure which’s when they pay so they do not pay anything till they really receive the money they don’t pay bottom line Wonder trust anything till this letter is validated the check is on the way they transfer it into their checking account and they can truly trust Wonder trust that the procedure has actually been completed and how many you believe you have actually 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 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly essential today the worker retention credit which most of you have never become aware of I certainly had not become aware of it until really just recently and found out a lot about it since this is probably the lowest cost of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder 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 call up your bank supervisor and state offer 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 have actually become yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund fine go on sorry I simply have to ensure we got that point I imply that’s a big difference a loan versus money money I like money cash that’s what we’re talking about all right 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 lovely difficult check in the mail where you get actual cash from the IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s employee retention credit that individual needed to be a staff member so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have actually owned a company however it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 workers 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 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my preferred part cash just how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the employee’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the mayhem 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 takes place 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 employee that is because that’s a lot of cash it is now there’s a caution here the PPP cash would need to be minimized 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 money somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New york city 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 internal revenue service so it’s big undoubtedly now the huge question is why does no one know about this because look when I initially found out about this when I first fulfilled Josh you know I’ve got great deals of financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t believe it due to the fact that I use 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 utilized them wisely to stay alive during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even called to my politician good friends Governor Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation is that there’s no info out there then a lot of people informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody understand about the staff member retention credit you know what’s fascinating you’re speaking about the banks Kevin due to the fact that in the PPP loan process the federal government made it really 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 process that’s all um and here there was mayhem because remember in the initial cares act you could refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the original program and when they changed the law in 2021 the banks were not doing ERC due to the fact that 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 truly she or he’s never ever done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll business your accountant no your accountant’s never ever done this prior to unless you have an account that went into this service and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our big big business customers have dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Since of COVID-19 or whose gross invoices, company whose organization is fully or partly suspended.
decline by more than 50%.
Schedule.
1. The credit is available to all employers no matter size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. When the.
employer’s gross receipts go above 80% of an equivalent 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 qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying earnings differs by whether an employer had, on average, basically than.
100 workers in 2019.
Business that concentrate on ERC filing help typically offer proficiency and support to assist services browse the complicated procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Ending Early
Eligibility Evaluation: These companies will evaluate your service’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. If you fulfill the requirements for the credit and determine the optimum credit amount you can claim, they can assist determine.
Paperwork and Estimation: ERC filing services will help in collecting the needed paperwork, such as payroll records and financial statements, to support your claim. They will likewise assist calculate the credit quantity based upon eligible earnings and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the necessary types and documents in your place. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have evolved in time. These business remain upgraded with the current modifications and make sure that your filings abide by the most present guidelines. If the IRS demands additional details or performs an audit related to your ERC claim, they can also provide continuous support.
It is essential to research and veterinarian any business using ERC filing assistance to guarantee their credibility and proficiency. Look for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who offer ERC submitting assistance.
Remember that while these companies can offer valuable support, it’s constantly an excellent concept to have a basic understanding of the ERC requirements and process 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. government as part of COVID-19 relief measures. The goal of the ERC is to motivate services to keep 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 qualified employers, including for-profit services, tax-exempt companies, and certain governmental entities. To certify, employers should fulfill one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a percentage (as much as 70%) of qualified salaries paid to staff members, consisting of specific health plan expenditures. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they got a PPP loan. The same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and enhanced, enabling eligible employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for services to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, normally Form 941. The excess can be refunded to the company if the credit surpasses the amount of employment taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have progressed over time. The best course of action is to talk to a tax professional or visit the official IRS website for the most comprehensive and up-to-date info relating to the ERC, consisting of any current legal changes or updates.
To receive the ERC, a business should meet one of the following criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and organizations that received a PPP loan may have constraints on declaring the credit.
The procedure for declaring the ERC involves finishing the essential kinds and consisting of the credit on your employment tax return (normally Type 941). The exact time it takes to process the credit can differ based on a number of elements, consisting of the complexity of your business and the work of the internal revenue service. It’s recommended to seek advice from a tax professional for assistance specific to your circumstance.
There are a number of companies that can help with the procedure of declaring the ERC. Some well-known companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information provided here is based upon general knowledge and might not show the most current updates or changes to the ERC. It is very important to seek advice from a tax professional or check out the main internal revenue service website for the most current and accurate details regarding eligibility, claiming treatments, and available assistance.
Less than 100. If the company had 100 or fewer staff members typically in 2019, then the credit is based.
on incomes paid to all staff members whether they in fact worked or not. Simply put, even if the.
staff members worked full-time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
allowed just for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not simply cash payments however likewise a part of the expense of employer.
offered health care. Employee Retention Credit Ending Early
Payment.
Employers can be right away compensated for the credit by minimizing the amount of payroll taxes they.