Lets talk first about Employee Retention Credit Flowchart :
Our group here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly provide a stunning breakfast and have people truly learn about the program we need to head to the room where we are able to show a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I imply you understand if you simply begin to take a 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 the number of actual clients 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 customer so that’s how you have the ability to track it you know when you
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything up until they really receive the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their checking account and they can truly rely on Wonder trust that the procedure has been finished and how many you think you have actually processed considering that you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they know 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 Terrific here you’re at my YouTube channel we’re talking about something truly important today the employee retention credit which the majority of you have never become aware of I definitely had not heard of it until really recently and discovered a lot about it due to the fact that this is probably the lowest cost of capital for any small company anywhere
anytime if you have workers in between 5 and five hundred so I have actually got the specialist 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 call up your bank supervisor and state give me a loan it does not 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 become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing very soon you got to learn everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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.
correct the cash cash payroll tax refund okay go on sorry I simply need to ensure we got that point I suggest that’s a big distinction a loan versus cash money I like cash cash that’s what we’re discussing 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 stunning hard check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works because it seems like to me if it’s a if it’s employee retention credit that person had 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 workers right you needed to have owned a company but it’s based on you having W-2 employees 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 need 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 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. all right so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part cash just how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s wage to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus since 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 as much as 5 thousand Max and then what happens 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is since that’s a lot of money it is now there’s a caveat here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars an individual 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 money you would still get a million dollar in the mail from the IRS so it’s huge undoubtedly now the big concern is why does nobody understand about this because appearance when I initially heard about this when I first met Josh you know I have actually got great deals of financial investments in great deals of business I’m a major advocate for entrepreneurship in America and make numerous numerous investments in business owners of which lots of suffered through the pandemic when I initially found out about this I called BS I do not believe it because I utilize the PPP we went through the money 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 should have and we utilized them carefully to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even called to my politician buddies Governor Senators they didn’t know about it I imply that’s how you understand that’s how misinformation is that there’s no info out there then a lot 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 nobody understand about the worker retention credit you know what’s intriguing you’re speaking about the banks Kevin because 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 big 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 procedure process that’s all um and here there was mayhem since keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never 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 do not do it the payroll companies yeah a few of them are doing it as a payroll business your accountant no your accounting professional’s never done this before unless you have an account that went into this service and bottom line my company Kevin has actually stayed in business given that 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have dealt with bottom line to recover 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 worker 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 as much as $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, company whose organization is totally or partly suspended.
decline by more than 50%.
1. The credit is available to all companies no matter size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
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 overall.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying salaries varies by whether a company had, on average, basically than.
100 workers in 2019.
Business that focus on ERC filing help typically offer knowledge and support to assist organizations navigate the complex procedure of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Flowchart
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based on factors such as your industry, income, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can declare, they can help identify.
Documentation and Computation: ERC filing services will assist in gathering the essential documentation, such as payroll records and financial statements, to support your claim. They will also help compute the credit amount based upon eligible wages and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can evaluate your past payroll records and financials to identify possible opportunities for retroactive credits. They can assist you amend previous income tax return to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the needed types and documents in your place. This consists of completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have progressed gradually. These business remain upgraded with the most recent modifications and guarantee that your filings comply with the most existing guidelines. If the Internal revenue service demands additional information or carries out an audit related to your ERC claim, they can also provide continuous support.
It is very important to research and vet any company using ERC filing support to ensure their reliability and expertise. Search for recognized firms with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax specialists who offer ERC filing support.
Remember that while these companies can provide important help, it’s constantly a good concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate businesses to keep and pay their workers during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To certify, employers should fulfill one of two criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As pointed out earlier, for 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices 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 percentage (up to 70%) of qualified earnings paid to staff members, consisting of specific health insurance expenses. 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, companies that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they got a PPP loan. However, the exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, allowing qualified companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for organizations to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Kind 941. The excess can be refunded to the company if the credit surpasses the amount of work taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have actually developed over time. The very best course of action is to talk to a tax expert or go to the main internal revenue service website for the most comprehensive and current details regarding the ERC, including any recent legislative modifications or updates.
To receive the ERC, a business must satisfy among the following requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, federal government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The process for declaring the ERC includes completing the required types and including the credit on your work tax return (normally Kind 941). The exact time it takes to process the credit can vary based on numerous elements, including the intricacy of your service and the workload of the internal revenue service. It’s suggested to seek advice from a tax professional for guidance specific to your circumstance.
There are a number of business that can help with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some well-known business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and get in touch with these business straight to inquire about their charges and services.
Please note that the information offered here is based on general knowledge and might not show the most recent updates or modifications to the ERC. It is necessary to consult with a tax expert or visit the official internal revenue service site for the most current and precise info relating to eligibility, claiming treatments, and readily available support.
Less than 100. If the company had 100 or fewer employees on average in 2019, then the credit is based.
on earnings paid to all employees whether they really worked or not. In other words, even if the.
staff members worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
enabled just for earnings paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not just cash payments but also a portion of the cost of employer.
provided health care. Employee Retention Credit Flowchart
Employers can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.