Lets talk first about Employee Retention Credit Healthcare :
Our group here what do these men doing everybody in this space is assisting teach people about ERC and uh constantly supply a stunning breakfast and have individuals actually find out about the program we must head to the space where we have the ability to display some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I indicate you understand if you simply start 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 mean it’s simply I mean think about how many real 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 verified and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you know when you
receive this you understand the check is opted for sure and that’s when they pay so they do not pay anything up until they actually get the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their savings account and they can really rely on Wonder trust that the procedure has been completed and the number of you believe you have actually processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you require you need professionals 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly essential today the worker retention credit which the majority of you have actually never become aware of I certainly hadn’t heard of it till extremely recently and found out a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have workers in between 5 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 difficult this isn’t like PPP we just contact your bank manager 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 us all about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I like this program it’s going away soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered organizations three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big 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 money payroll tax refund all right go on sorry I simply need to make sure we got that point I indicate that’s a big difference a loan versus cash money I like money money 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 tough check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works since it seems like to me if it’s a if it’s employee retention credit that individual had to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have owned a service but it’s based on you having W-2 staff members in America not 10.99. so as long as you had W-2 employees 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 have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part money just how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s wage to an optimum 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 an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus due to the fact that 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 approximately five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caution here the PPP money would need to be lowered 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 on average Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial clearly now the huge question is why does nobody know about this since appearance when I first found out about this when I initially fulfilled Josh you understand I have actually got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of many investments in business owners of which lots of suffered through the pandemic when I first 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 should have and we utilized them sensibly to stay alive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my political leader friends Guv Senators they didn’t understand about it I suggest that’s how you understand that’s how misinformation is that there’s no details out there then a lot of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one know about the staff member retention credit you understand what’s interesting you’re discussing the banks Kevin since in the PPP loan process the federal government made it really clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country 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 turmoil due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO understand how to do this not truly she or he’s never done it in the past do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this business and bottom line my firm Kevin has stayed in business given that 2009 and we’ve been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big big corporate clients have actually dealt with bottom line to recover other government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Since of COVID-19 or whose gross invoices, employer whose service is fully or partially suspended.
decline by more than 50%.
Accessibility.
1. The credit is available to all companies regardless of size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying salaries varies by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing help typically offer proficiency and assistance to assist businesses browse the complicated process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Healthcare
Eligibility Assessment: These companies will evaluate your service’s eligibility for the ERC based upon elements such as your industry, earnings, and operations. They can help determine if you meet the requirements for the credit and identify the maximum credit amount you can claim.
Paperwork and Calculation: ERC filing services will assist in gathering the essential documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit amount based upon eligible incomes and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these companies can examine your past payroll records and financials to recognize possible opportunities for retroactive credits. They can help you change prior tax returns to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the required types and documents in your place. This consists of completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually developed with time. These companies stay updated with the latest changes and guarantee that your filings abide by the most current guidelines. If the Internal revenue service requests extra info or carries out an audit associated to your ERC claim, they can likewise supply continuous assistance.
It is essential to research and vet any company providing ERC filing assistance to guarantee their reliability and knowledge. Look for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax specialists who offer ERC submitting assistance.
Remember that while these companies can offer important help, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to encourage services to retain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit businesses, tax-exempt companies, and specific governmental entities. To qualify, employers need to fulfill one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. As mentioned previously, for 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices 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 quantity is equal to a portion (as much as 70%) of certified earnings paid to employees, consisting of specific health insurance expenditures. 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 Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got a PPP loan. However, the same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, enabling qualified companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision offers an opportunity for companies to amend prior-year income tax return and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Kind 941. If the credit surpasses the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is very important to note that the ERC arrangements and eligibility requirements have developed over time. The best strategy is to consult with a tax expert or go to the official internal revenue service site for the most current and comprehensive information relating to the ERC, consisting of any recent legal modifications or updates.
To get approved for the ERC, a service should fulfill among the following criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and businesses that received a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC includes completing the essential kinds and including the credit on your work tax return (usually Kind 941). The exact time it requires to process the credit can vary based on a number of factors, consisting of the complexity of your business and the workload of the internal revenue service. It’s advised to speak with a tax expert for assistance specific to your circumstance.
There are numerous companies that can assist with the procedure of declaring the ERC. Some well-known business that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based upon basic knowledge and may not reflect the most current updates or changes to the ERC. It’s important to seek advice from a tax expert or go to the official internal revenue service site for the most precise and current info concerning eligibility, claiming treatments, and available support.
Less than 100. If the employer had 100 or fewer staff members typically in 2019, then the credit is based.
on wages paid to all employees whether they really worked or not. Simply put, even if the.
staff members worked full-time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
allowed only for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just money payments however also a part of the cost of employer.
offered healthcare. Employee Retention Credit Healthcare
Payment.
Employers can be immediately repaid for the credit by minimizing the amount of payroll taxes they.