Lets talk first about Employee Retention Credit Information :
Our group here what do these men doing everybody in this room is helping teach people about ERC and uh constantly provide a lovely breakfast and have individuals actually find out about the program we need to head to the room where we have the ability 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 hundreds of millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I suggest you understand if you simply start to look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I mean think of the number of 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 confirmed and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you understand when you
receive this you understand the check is chosen sure which’s when they pay so they don’t pay anything till they in fact get the money they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the process has been finished and the number of you think you’ve processed given that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you need you require 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly essential today the staff member retention credit which most of you have never heard of I definitely had not become aware of it until extremely recently and discovered a lot about it due to the fact that this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers 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 biggest 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 offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell 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 enjoy this program it’s disappearing soon you got to find out everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies 3 opportunities 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.
remedy the cash cash payroll tax refund all right go on sorry I simply have to make sure we got that point I indicate that’s a big difference a loan versus cash cash I like money money that’s what we’re discussing alright 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 since it sounds like to me if it’s a if it’s employee retention credit that person needed to be an employee 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 workers right you needed to have owned a business but it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 workers 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 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 2 three and four of 2020 and you had quarters one two and three of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per worker 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 occur um they just altered the rules in.
2021 versus since the chaos 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 five thousand Max and after that 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 6 thousand dollars per worker that is because that’s a lot of cash it is now there’s a caveat here the PPP money would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace 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 big undoubtedly now the big question is why does no one learn about this due to the fact that look when I initially heard about this when I initially fulfilled Josh you understand I’ve got lots of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make many numerous financial investments in business owners of which lots of suffered through the pandemic when I first found out about this I called BS I don’t believe it since I utilize the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them carefully to survive throughout the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even contacted us to my politician friends Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one understand about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it very clear that if you wanted 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 just procedure procedure that’s all um and here there was mayhem since remember in the original cares act you could not do both programs so if you had done PPP you could not do ERC in the original program and when they altered 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 anyone about how to.
do this does your CFO know how to do this not actually she or he’s never done it in the past do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that went into this service and bottom line my firm Kevin has been in business given that 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big business clients have actually worked with bottom line to recover 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 property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, employer whose organization is fully or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all employers no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. When the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying salaries differs by whether a company had, usually, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing support generally supply competence and assistance to assist organizations navigate the complex procedure of declaring the credit. They can provide different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Information
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based on factors such as your market, earnings, and operations. They can help figure out if you fulfill the requirements for the credit and identify the optimum credit amount you can declare.
Paperwork and Calculation: ERC filing services will help in gathering the essential documentation, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit amount based upon eligible salaries and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your past payroll records and financials to identify potential opportunities for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the essential forms and documents in your place. This includes finishing Type 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have progressed gradually. These companies remain upgraded with the current modifications and ensure that your filings comply with the most present standards. They can also supply ongoing assistance if the internal revenue service demands extra information or performs an audit related to your ERC claim.
It’s important to research study and veterinarian any business using ERC filing help to ensure their trustworthiness and competence. Look for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax experts who offer ERC submitting support.
Bear in mind that while these companies can offer valuable assistance, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified choices and make sure precise filings.
The Employee 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 motivate services to keep and pay their workers throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit companies, tax-exempt companies, and certain governmental entities. To certify, companies must satisfy one of two requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As mentioned previously, for 2021, a substantial decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline 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 company’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of certified salaries paid to staff members, including particular health plan costs. The optimum 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 a Paycheck Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. The very same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, enabling eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be refunded to the employer if the credit goes beyond the quantity of work taxes owed.
It is necessary to note that the ERC provisions and eligibility criteria have progressed gradually. The best strategy is to speak with a tax professional or go to the official IRS website for the most detailed and updated info regarding the ERC, consisting of any recent legal changes or updates.
To qualify for the ERC, a company must satisfy one of the following requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt companies, however there are some exceptions. For example, government entities and businesses that received a PPP loan may have constraints on claiming the credit.
The process for claiming the ERC includes finishing the needed types and consisting of the credit on your employment tax return (usually Form 941). The exact time it takes to process the credit can vary based on several factors, including the complexity of your business and the work of the IRS. It’s recommended to talk to a tax professional 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 provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details offered here is based upon general understanding and may not reflect the most recent updates or changes to the ERC. It is very important to seek advice from a tax professional or visit the official IRS website for the most current and accurate details regarding eligibility, declaring procedures, and available assistance.
Less than 100. If the company had 100 or fewer workers typically in 2019, then the credit is based.
on earnings paid to all staff members whether they actually worked or not. In other words, even if the.
staff members worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees on average in 2019, then the credit is.
permitted just for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” includes not simply cash payments however likewise a portion of the cost of employer.
provided health care. Employee Retention Credit Information
Companies can be instantly reimbursed for the credit by reducing the quantity of payroll taxes they.