Lets talk first about Employee Retention Credit Guidelines :
Our team here what do these people doing everybody in this room is assisting teach individuals about ERC and uh constantly offer a beautiful breakfast and have people actually find out about the program we should head to the room where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I suggest you know if you simply begin to look at a few of these here I mean 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 the number of real customers that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are confirmed 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 know when you
receive this you know the check is opted for sure and that’s when they pay so they don’t pay anything till they really get the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their bank account and they can really rely on Wonder trust that the process has actually been finished and how many you believe you’ve 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 specialists 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 Terrific here you’re at my YouTube channel we’re talking about something really important today the worker retention credit which the majority of you have never become aware of I definitely hadn’t heard of it till extremely recently and learned a lot about it due to the fact that this is probably the most affordable 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 professional 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 hard this isn’t like PPP we simply call your bank manager and say give 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 representative for this I love this program it’s disappearing soon you got to learn all about it let’s talk staff member 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 used companies 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 two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund all right go on sorry I just have to ensure we got that point I suggest that’s a huge difference 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 initial cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get real money from the internal revenue service all right so let’s talk 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 individual needed to be a staff member 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 employees right you needed to have owned an organization however it’s based on you having W-2 workers 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 need to be on payroll in 2020 on the W-2 and you have 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 stroll us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my preferred part cash just how much can you return per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s salary to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the turmoil of the pandemic so they wished to even get more to keep those workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of money it is now there’s a caution here the PPP money would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city 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 substantial undoubtedly now the big concern is why does no one know about this due to the fact that look when I first heard about this when I initially met Josh you understand I’ve got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous numerous investments in business owners of which many suffered through the pandemic when I first heard about this I called BS I don’t think it since I utilize the PPP we went through the cash 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 should have and we used them carefully to stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even contacted us to my politician pals Guv Senators they didn’t learn about it I mean that’s how you know that’s how misinformation is that there’s no information out there then a bunch of people informed 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 understand about the worker retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan process 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was turmoil due to the fact that keep in mind in the original cares act you could not do both programs so if you had actually 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 government never made it clear to anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never done it before do the banks do it nope the banks don’t do it the payroll business yeah a few 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 company and bottom line my company Kevin has been in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big big business customers have actually worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
company whose company is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Accessibility.
1. The credit is readily available to all employers no matter size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices 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 the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages differs by whether a company had, on average, more or less than.
100 employees in 2019.
Companies that focus on ERC filing assistance typically offer know-how and assistance to assist businesses browse the intricate procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Guidelines
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based on factors such as your industry, revenue, and operations. They can help determine if you fulfill the requirements for the credit and determine the maximum credit amount you can declare.
Paperwork and Computation: ERC filing services will help in gathering the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit quantity based on qualified earnings and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Help: Business concentrating on ERC filings will prepare and send the needed types and documents on your behalf. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed over time. These business stay updated with the most recent modifications and guarantee that your filings adhere to the most existing standards. They can also supply ongoing assistance if the IRS demands extra information or conducts an audit related to your ERC claim.
It is necessary to research study and vet any business providing ERC filing help to guarantee their credibility and knowledge. Try to find established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who offer ERC submitting assistance.
Remember that while these business can offer important support, it’s always an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage businesses to keep and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, companies should fulfill one of two requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As pointed out previously, for 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline 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 amount amounts to a portion (as much as 70%) of qualified incomes paid to employees, consisting of certain health plan expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received an Income Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. The exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, enabling qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for organizations to modify prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, normally Type 941. The excess can be reimbursed to the employer if the credit goes beyond the amount of employment taxes owed.
It is essential to keep in mind that the ERC arrangements and eligibility requirements have progressed in time. The best course of action is to talk to a tax professional or go to the official internal revenue service website for the most up-to-date and comprehensive details concerning the ERC, consisting of any recent legal modifications or updates.
To qualify for the ERC, a company must satisfy among the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a significant decline is defined as a 20% decrease in gross receipts 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 very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and businesses that got a PPP loan may have limitations on claiming the credit.
The procedure for declaring the ERC includes completing the essential types and consisting of the credit on your employment tax return (normally Kind 941). The exact time it takes to process the credit can differ based upon several aspects, consisting of the complexity of your service and the work of the internal revenue service. It’s advised to consult with a tax professional for guidance specific to your situation.
There are several companies that can help with the process of declaring the ERC. Some well-known companies that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based upon general understanding and might not reflect the most current updates or changes to the ERC. It is essential to seek advice from a tax expert or check out the official IRS website for the most current and precise information relating to eligibility, claiming procedures, and available support.
Less than 100. If the company had 100 or less employees usually in 2019, then the credit is based.
on incomes paid to all employees whether they actually 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 typically in 2019, then the credit is.
allowed just for wages paid to workers who did not work during the calendar quarter.
In both cases, “wages” includes not just money payments but also a part of the expense of employer.
offered healthcare. Employee Retention Credit Guidelines
Payment.
Companies can be instantly compensated for the credit by decreasing the amount of payroll taxes they.