Lets talk first about Employee Retention Credit Large Vs Small Employer :
Our team here what do these men doing everyone in this room is helping teach individuals about ERC and uh always provide a stunning breakfast and have individuals truly learn about the program we should head to the room where we are able to display some of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I suggest you understand if you just start 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 imply it’s just I indicate think about the number of actual clients 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 verified 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 understand when you
receive this you understand the check is gone for sure and that’s when they pay so they don’t pay anything up until they in fact receive the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their bank account and they can truly rely on Wonder trust that the procedure has actually been ended up and how many you think you’ve processed because you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you require 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 discussing something actually essential today the employee retention credit which most of you have never become aware of I definitely hadn’t heard of it till very just recently and found out a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members in 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 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 phone your bank supervisor and say offer me a loan it does not work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody 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.
fix the money money payroll tax refund fine go on sorry I simply have to make sure we got that point I imply that’s a big distinction a loan versus money money I like cash money 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 original cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s worker retention credit that individual had to be an employee so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have actually owned a service however it’s based on 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 first six months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my preferred part money 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 employee’s salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus because the turmoil of the pandemic so they wanted 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 up to five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a lot of cash it is now there’s a caution here the PPP money would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere 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 money you would still get a million dollar in the mail from the IRS so it’s huge clearly now the huge question is why does no one learn about this because look when I first found out about this when I initially met Josh you understand I’ve got lots of financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of 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 extremely easy to do we had our CEOs call the banks they got their loans and that were well should have and we used them sensibly to stay alive during the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my politician pals Governor Senators they didn’t understand about it I indicate that’s how you know that’s how false information is that there’s no details out there then a lot of people informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody know about the employee retention credit you know what’s fascinating you’re talking about the banks Kevin because in the PPP loan procedure 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 big banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was turmoil due to the fact that keep in mind in the initial cares act you might not do both programs so if you had actually done PPP you might not do 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 government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly she or he’s never ever 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 company your accountant no your accountant’s never ever done this before unless you have an account that entered into this company and bottom line my company Kevin has been in business because 2009 and we’ve been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our big huge business clients have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, company whose service is totally or partly suspended.
decrease by more than 50%.
1. The credit is offered to all companies regardless of size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the comparable quarter in 2019. When the.
company’s gross invoices go above 80% of a similar 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 qualifying earnings paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether a company had, on average, more or less than.
100 workers in 2019.
Business that specialize in ERC filing help usually provide expertise and support to assist companies browse the intricate process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Large Vs Small Employer
Eligibility Evaluation: These companies will examine your company’s eligibility for the ERC based on factors such as your market, earnings, and operations. They can help identify if you meet the requirements for the credit and identify the maximum credit quantity you can claim.
Documents and Estimation: ERC filing services will help in collecting the essential documentation, such as payroll records and financial declarations, to support your claim. They will likewise assist determine the credit quantity based on qualified wages and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to determine possible chances for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the required types and paperwork on your behalf. This consists of finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have evolved gradually. These companies remain upgraded with the current changes and make sure that your filings adhere to the most present standards. If the IRS requests additional info or performs an audit associated to your ERC claim, they can also provide ongoing assistance.
It is very important to research and veterinarian any company providing ERC filing support to guarantee their trustworthiness and knowledge. Search for established companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who offer ERC submitting assistance.
Keep in mind that while these business can provide important help, it’s always a good concept to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to encourage businesses to keep and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit services, tax-exempt companies, and particular governmental entities. To qualify, employers must meet one of two requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross invoices. As pointed out previously, for 2021, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away 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 workers, including particular health plan expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. However, the same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, enabling qualified employers to declare 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: Employers can claim the ERC by reporting it on their employment income tax return, generally Kind 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of work taxes owed.
It’s important to note that the ERC provisions and eligibility requirements have actually evolved with time. The very best strategy is to seek advice from a tax professional or go to the main internal revenue service site for the most in-depth and up-to-date info relating to the ERC, including any recent legislative changes or updates.
To get approved for the ERC, a business must fulfill one of the following criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and services that got a PPP loan may have constraints on declaring the credit.
The procedure for declaring the ERC includes finishing the essential kinds and including the credit on your employment income tax return (typically Kind 941). The exact time it requires to process the credit can vary based upon several aspects, consisting of the intricacy of your business and the workload of the internal revenue service. It’s recommended to speak with a tax professional for assistance specific to your scenario.
There are a number of companies that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these companies directly to ask about their charges and services.
Please keep in mind that the info supplied here is based on general understanding and may not reflect the most current updates or modifications to the ERC. It is necessary to consult with a tax expert or go to the main IRS site for the most accurate and up-to-date details relating to eligibility, claiming procedures, and offered help.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on wages paid to all workers 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 employer had more than 100 staff members usually in 2019, then the credit is.
allowed only for wages paid to workers who did not work during the calendar quarter.
In both cases, “earnings” consists of not just money payments however likewise a portion of the cost of company.
supplied healthcare. Employee Retention Credit Large Vs Small Employer
Employers can be instantly compensated for the credit by lowering the quantity of payroll taxes they.