Lets talk first about Employee Retention Credit Expiration Date :
Our group here what do these people doing everyone in this room is helping teach people about ERC and uh always offer a beautiful breakfast and have individuals truly learn more about the program we must head to the room where we are able to display a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I mean you understand if you just begin to 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 indicate it’s just I imply think about the number of 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 IRS heading to the customer so that’s how you’re able to track it you understand when you
receive this you understand the check is gone for sure which’s when they pay so they do not pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their checking account and they can genuinely trust Wonder trust that the process has actually been completed and the number of you think you have actually processed since you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing and that’s what you need you require experts 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 Fantastic here you’re at my YouTube channel we’re discussing something truly essential today the worker retention credit which the majority of you have actually never ever heard of I certainly had not become aware of it till really just recently and learned a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have workers in 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 Concepts 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 simply phone your bank supervisor and say provide me a loan it does not 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 ended up being yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very soon you got to find out everything 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 came up with the cares Act and the cares act offered businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference 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 alright go on sorry I simply need to make sure we got that point I imply that’s a huge distinction a loan versus cash cash I like money cash that’s what we’re talking 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 original cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s employee retention credit that person had 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 workers right you had to have actually owned a business but it’s based on you having W-2 staff members 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 qualified so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 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 preferred part money how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’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 staff member’s wage to an optimum of 7 thousand per quarter how did that take place um they simply changed the rules in.
2021 versus due to the fact that 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 create 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 since that’s a lot of money it is now there’s a caveat here the PPP cash would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would decrease 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 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 IRS so it’s substantial certainly now the huge concern is why does no one understand about this because look when I initially heard about this when I initially satisfied Josh you understand I’ve got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make numerous many investments in business owners of which numerous suffered through the pandemic when I initially became aware of this I called BS I do not believe it due to the fact that 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 utilized them carefully to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true however when I dug around I even called to my politician good friends Governor Senators they didn’t learn about it I indicate that’s how you understand that’s how false information is that there’s no info 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 know about the worker retention credit you know what’s interesting you’re talking about the banks Kevin because 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 big 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 process procedure that’s all um and here there was chaos because remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC because 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 before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually stayed in business considering that 2009 and we’ve been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big huge business customers have dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
employer whose business is fully or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages differs by whether an employer had, on average, more or less than.
100 employees in 2019.
Business that focus on ERC filing support usually offer proficiency and assistance to help companies browse the intricate process of claiming the credit. They can use different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Expiration Date
Eligibility Evaluation: These business will assess your business’s eligibility for the ERC based on elements such as your market, profits, and operations. If you fulfill the requirements for the credit and determine the maximum credit amount you can claim, they can assist identify.
Paperwork and Estimation: ERC filing services will assist in collecting the needed documents, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit quantity based on eligible salaries and other certifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these business can evaluate your past payroll records and financials to identify potential chances for retroactive credits. They can help you amend previous tax returns to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the essential forms and documents in your place. This includes completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have actually developed gradually. These companies remain upgraded with the most recent modifications and make sure that your filings adhere to the most existing standards. They can likewise supply continuous assistance if the IRS requests extra information or carries out an audit related to your ERC claim.
It is necessary to research and vet any company offering ERC filing assistance to ensure their trustworthiness and know-how. Search for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who provide ERC filing support.
Bear in mind that while these companies can provide valuable assistance, it’s constantly an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and ensure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage businesses to keep and pay their workers during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, employers must meet one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As pointed out earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the very 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 company’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of qualified incomes paid to staff members, consisting of particular health plan 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: At first, businesses that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they got a PPP loan. The very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, enabling eligible companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement provides a chance for organizations to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, normally Type 941. The excess can be refunded to the employer if the credit exceeds the amount of work taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have actually evolved over time. The best strategy is to seek advice from a tax professional or go to the official internal revenue service site for the most updated and in-depth details regarding the ERC, consisting of any recent legal modifications or updates.
To get approved for the ERC, a business must meet one of the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. Federal government entities and services that got a PPP loan might have constraints on claiming the credit.
The process for claiming the ERC involves finishing the essential forms and including the credit on your work tax return (normally Type 941). The exact time it takes to process the credit can vary based upon several elements, including the intricacy of your business and the work of the IRS. It’s suggested to talk to a tax expert for guidance specific to your scenario.
There are a number of business that can help with the procedure of declaring the ERC. Some popular companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
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 professional or check out the main internal revenue service site for the most accurate and updated info regarding eligibility, claiming procedures, and available support.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on incomes paid to all workers whether they in fact worked or not. To put it simply, even if the.
workers worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers usually in 2019, then the credit is.
allowed just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “wages” includes not just money payments but likewise a part of the cost of employer.
supplied healthcare. Employee Retention Credit Expiration Date
Companies can be instantly compensated for the credit by decreasing the amount of payroll taxes they.