Lets talk first about Employee Retention Credit Limitation :
Our team here what do these men doing everyone in this space is helping teach people about ERC and uh always provide a gorgeous breakfast and have people really find out about the program we must head to the space 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 hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I indicate you know if you just begin to take a 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 suggest it’s just I indicate consider the number of real customers that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are validated and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you have the ability to track it you understand when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their checking account and they can genuinely trust Wonder trust that the process has been completed and the number of you think you have actually 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 and that’s what you need you need specialists 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly important today the staff member retention credit which most of you have actually never become aware of I certainly had not heard of it till very recently and learned a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have employees in between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 contact your bank manager and say give me a loan it does not 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 become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money money payroll tax refund fine go on sorry I just have to make certain 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 speaking 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 beautiful 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 due to the fact that it sounds like to me if it’s a if it’s staff member 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 people on the cap table not for shareholders it’s for staff members right you needed to have owned a business however it’s based on you having W-2 staff members 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the 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 two three and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my preferred part cash just how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus because the chaos 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 approximately five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a lot of money it is now there’s a caveat here the PPP money would need to be minimized 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 on average Kevin is if you took PPP cash 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 employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the huge question is why does nobody know about this because look when I initially became aware of this when I first fulfilled Josh you know I have actually got great deals of investments in great deals of business I’m a major advocate for entrepreneurship in America and make many lots of financial investments in business owners of which lots of suffered through the pandemic when I initially heard about this I called BS I do not think it since I use the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we used them carefully to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even called to my politician buddies Guv Senators they didn’t understand about it I indicate that’s how you understand that’s how false information is that there’s no information out there then a lot of people told 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 nobody learn about the employee retention credit you understand what’s intriguing you’re speaking about the banks Kevin because 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 huge 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 procedure that’s all um and here there was mayhem because keep in mind in the initial cares act you might not do both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not 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 anyone about how to.
do this does your CFO know how to do this not really he or she’s never ever done it previously 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 accounting professional no your accounting professional’s never done this before unless you have an account that went into this business and bottom line my firm Kevin has stayed in business considering that 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big huge business customers have dealt with bottom line to recover other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose organization is completely or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is offered to all companies no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the similar quarter in 2019. As soon as the.
company’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes differs by whether an employer had, usually, basically than.
100 employees in 2019.
Companies that focus on ERC filing assistance generally provide expertise and support to assist services browse the intricate process of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Limitation
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based on aspects such as your industry, income, and operations. If you fulfill the requirements for the credit and recognize the optimum credit amount you can claim, they can help figure out.
Paperwork and Computation: ERC filing services will help in gathering the required documents, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit quantity based on qualified earnings and other certifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these companies can review your past payroll records and financials to identify prospective opportunities for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the required forms and paperwork on your behalf. This consists of finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have actually developed over time. These business remain upgraded with the current modifications and make sure that your filings comply with the most present standards. If the Internal revenue service demands extra details or carries out an audit related to your ERC claim, they can likewise offer continuous assistance.
It is essential to research study and vet any company using ERC filing support to guarantee their reliability and proficiency. Look for established firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax professionals who provide ERC submitting assistance.
Remember that while these business can supply important support, it’s always a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and guarantee accurate filings.
The Worker 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 encourage businesses to keep and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, including for-profit companies, tax-exempt organizations, and certain governmental entities. To qualify, companies must fulfill one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As discussed earlier, for 2021, a substantial decrease is defined as a 20% decline in gross invoices 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 exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
Credit Amount: 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 (approximately 70%) of certified salaries paid to employees, including particular health plan expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they received a PPP loan. The exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting qualified employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to change prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Form 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the company.
It’s important to keep in mind that the ERC provisions and eligibility requirements have progressed gradually. The very best course of action is to talk to a tax expert or visit the official internal revenue service website for the most updated and in-depth info relating to the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, an organization should meet one of the following requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Federal government entities and companies that received a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC includes finishing the essential types and consisting of the credit on your employment income tax return (usually Form 941). The exact time it takes to process the credit can vary based on numerous factors, consisting of the complexity of your organization and the work of the IRS. It’s suggested to speak with a tax professional for guidance specific to your scenario.
There are a number of business that can assist with the process of declaring the ERC. Some widely known companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information supplied here is based upon general knowledge and may not show the most recent updates or changes to the ERC. It is necessary to speak with a tax professional or visit the main IRS website for the most accurate and up-to-date info relating to eligibility, declaring treatments, and readily available help.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on earnings paid to all workers whether they in fact worked or not. In other words, even if the.
employees 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 staff members on average in 2019, then the credit is.
enabled just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not just money payments however likewise a portion of the cost of company.
offered healthcare. Employee Retention Credit Limitation
Payment.
Companies can be right away repaid for the credit by lowering the quantity of payroll taxes they.