Lets talk first about Employee Retention Credit Filing Deadline 2022 :
Our team here what do these men doing everybody in this space is assisting teach individuals about ERC and uh always offer a lovely breakfast and have individuals truly learn about the program we ought to head to the room where we are able to show some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to clients confirming that the check is on the method I mean you know if you simply begin to look at some of these here I indicate 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 how many actual clients that went through the program yeah this is the very end this is the party 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 customer so that’s how you’re able to track it you understand when you
get this you understand the check is opted for sure and that’s when they pay so they don’t pay anything up 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 deposit it into their bank account and they can really trust Wonder trust that the process has been finished and how many you believe you have actually processed given that 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 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 Fantastic here you’re at my YouTube channel we’re speaking about something really important today the staff member retention credit which most of you have actually never heard of I definitely had not become aware of it until really recently and learned a lot about it since this is probably the most affordable expense of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just contact 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 tell all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I like this program it’s going away soon you got to discover all about it let’s talk employee 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 services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody 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.
correct the cash money payroll tax refund all right go on sorry I simply need to ensure we got that point I suggest that’s a huge difference a loan versus cash money I like cash money that’s what we’re speaking 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 beautiful hard check in the mail where you get real cash from the IRS all right so let’s discuss how it works because it seems like to me if it’s a if it’s staff member retention credit that person needed to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have actually owned a company however it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right 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 money how much can you get back per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that happen um they just altered 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 up to 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 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a great deal of cash it is now there’s a caveat here the PPP money would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the big concern is why does no one learn about this since appearance when I first found out about this when I first fulfilled Josh you know I have actually got lots of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make many many financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not think it due to the fact that I use the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we utilized them sensibly to survive throughout the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even called to my politician friends Guv Senators they didn’t learn about it I mean that’s how you know 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 due to the fact that you took the PPP also not real so let’s ask Josh why does no one know about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that 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 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 simply process process that’s all um and here there was turmoil since remember in the initial cares act you might refrain from doing both programs so if you had done PPP you could not do 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 federal 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 in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accountant’s never done this before unless you have an account that went into this organization and bottom line my company Kevin has stayed in business since 2009 and we have actually been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have actually worked with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax unemployment 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 up to $10,000 in wages paid by an.
Because of COVID-19 or whose gross receipts, company whose business is fully or partially suspended.
decline by more than 50%.
1. The credit is available to all companies despite size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages varies by whether a company had, on average, more or less than.
100 employees in 2019.
Companies that concentrate on ERC filing support usually offer know-how and support to assist organizations navigate the complex procedure of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Filing Deadline 2022
Eligibility Assessment: These business will assess your organization’s eligibility for the ERC based upon factors such as your industry, income, and operations. If you fulfill the requirements for the credit and determine the maximum credit amount you can declare, they can assist determine.
Paperwork and Calculation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit quantity based on qualified incomes and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to identify potential opportunities for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and submit the needed forms and documentation in your place. This consists of finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have developed in time. These companies stay upgraded with the latest modifications and ensure that your filings abide by the most present guidelines. They can also provide continuous assistance if the internal revenue service requests extra details or carries out an audit related to your ERC claim.
It’s important to research study and vet any business offering ERC filing support to ensure their credibility and proficiency. Look for established firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who offer ERC filing assistance.
Bear in mind that while these companies can offer valuable help, it’s always a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The objective 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 key points about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To qualify, employers should meet one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned previously, for 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of qualified salaries paid to staff members, including certain health plan expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. The same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, allowing eligible companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision provides an opportunity for companies to change prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, typically Type 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the employer.
It is necessary to note that the ERC provisions and eligibility criteria have actually progressed in time. The best course of action is to consult with a tax professional or go to the official IRS site for the most detailed and current details concerning the ERC, including any recent legal changes or updates.
To receive the ERC, a business needs to fulfill one of the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. For example, government entities and organizations that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes finishing the essential types and consisting of the credit on your work tax return (usually Form 941). The exact time it requires to process the credit can vary based upon numerous elements, consisting of the intricacy of your service and the work of the IRS. It’s advised to consult with a tax expert for assistance particular to your situation.
There are several companies that can aid with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some well-known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and get in touch with these companies straight to inquire about their services and charges.
Please keep in mind that the info provided here is based on basic understanding and may not show the most recent updates or modifications to the ERC. It is very important to talk to a tax professional or check out the main internal revenue service site for the most accurate and current info concerning eligibility, declaring treatments, and available assistance.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on earnings paid to all workers whether they in fact worked or not. Simply put, even if the.
employees worked full-time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
permitted only for earnings paid to workers who did not work during the calendar quarter.
In both cases, “incomes” includes not just cash payments but likewise a part of the expense of company.
offered healthcare. Employee Retention Credit Filing Deadline 2022
Employers can be right away reimbursed for the credit by reducing the quantity of payroll taxes they.