Lets talk first about Employee Retention Credit Financial Statement Disclosure :
Our group here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh constantly provide a lovely breakfast and have people truly learn more 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 wish to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I mean you understand if you just start to look at a few 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 mean consider how many 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 validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you have the ability to track it you understand when you
get this you understand the check is gone for sure which’s when they pay so they do not pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their savings account and they can really rely on Wonder trust that the process has been finished and how many you think you’ve processed because 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 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 Fantastic here you’re at my YouTube channel we’re speaking about something actually essential today the worker retention credit which the majority of you have actually never ever heard of I definitely hadn’t heard of it till extremely recently and discovered a lot about it due to the fact that this is probably the most affordable expense of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas 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 call up your bank manager and state offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to discover everything 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 developed the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund okay go on sorry I just have to ensure we got that point I indicate that’s a huge distinction a loan versus money money I like cash cash that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a lovely tough check in the mail where you get actual money from the IRS all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s staff member retention credit that person had 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 staff members right you needed to have actually owned a company but it’s based upon you having W-2 staff members 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 eligible so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to an optimum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wished 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 as much as 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a lot of money it is now there’s a caution here the PPP cash would need to be decreased 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 restaurant 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 IRS so it’s big undoubtedly now the huge question is why does nobody know about this due to the fact that look when I initially became aware of this when I initially met Josh you understand I’ve got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make many many financial investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t think it since 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 been worthy of and we used them wisely to survive throughout the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even contacted us to my political leader buddies Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how false information is that there’s no information 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 real so let’s ask Josh why does no one know about the worker retention credit you know what’s intriguing you’re discussing the banks Kevin because in the PPP loan process the federal government made it extremely clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our nation and they would process process 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 due to the fact that remember in the initial cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the original program and when they altered the law in 2021 the banks were not doing ERC since 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 actually she or he’s never 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 business your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my company Kevin has stayed in business because 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 great deal of our huge huge business clients have actually dealt with bottom line to recover other government programs we’ve 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 designed to encourage.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
Since of COVID-19 or whose gross receipts, company whose company is completely or partly suspended.
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.
companies who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries varies by whether an employer had, typically, basically than.
100 employees in 2019.
Business that specialize in ERC filing assistance normally provide competence and support to help companies navigate the complex process of claiming the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Financial Statement Disclosure
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based on elements such as your market, earnings, and operations. If you fulfill the requirements for the credit and recognize the optimum credit amount you can declare, they can help determine.
Documents and Computation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will also assist calculate the credit quantity based upon eligible salaries and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to identify potential opportunities for retroactive credits. They can help you modify prior tax returns to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the required types and documents in your place. This consists of completing Form 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have actually evolved over time. These business stay updated with the current changes and ensure that your filings adhere to the most current guidelines. If the IRS requests extra info or carries out an audit associated to your ERC claim, they can also supply ongoing support.
It is very important to research and vet any business providing ERC filing help to ensure their reliability and competence. Try to find established companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who offer ERC filing support.
Keep in mind that while these companies can offer valuable assistance, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure precise filings.
The Staff Member 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 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 available to qualified companies, including for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, companies need to satisfy one of two criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As discussed previously, for 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease 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 instantly 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 percentage (approximately 70%) of certified wages paid to workers, consisting of specific health plan costs. 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: At first, services that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they received a PPP loan. The very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, enabling qualified companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Type 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have evolved with time. The best strategy is to talk to a tax professional or go to the main internal revenue service website for the most detailed and updated details relating to the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, an organization should satisfy among the following requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have constraints on declaring the credit.
The procedure for declaring the ERC involves completing the required types and including the credit on your work income tax return (usually Kind 941). The exact time it takes to process the credit can vary based on numerous aspects, including the complexity of your service and the work of the internal revenue service. It’s recommended to seek advice from a tax expert for assistance particular to your scenario.
There are several business that can help with the process of claiming the ERC. Some widely known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details offered here is based upon general understanding and may not show the most current updates or changes to the ERC. It is necessary to speak with a tax professional or check out the main internal revenue service website for the most accurate and updated info concerning eligibility, claiming procedures, and readily available support.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on salaries paid to all workers whether they in fact worked or not. To put it simply, even if the.
workers worked full-time and made money 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.
permitted only for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply money payments however also a part of the cost of company.
provided healthcare. Employee Retention Credit Financial Statement Disclosure
Companies can be right away reimbursed for the credit by lowering the quantity of payroll taxes they.