Lets talk first about Employee Retention Credit Maximum :
Our group here what do these men doing everybody in this room is assisting teach people about ERC and uh constantly supply a stunning breakfast and have people truly 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 countless dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I indicate you know if you simply start to take a 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 suggest it’s simply I imply think about how many real 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 gone for sure and that’s when they pay so they do not pay anything until they actually get the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their bank account and they can genuinely trust Wonder trust that the procedure has been ended up and how many you think you’ve processed since you started 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 need you need 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly important today the employee retention credit which most of you have actually never heard of I certainly had not become aware of it until really recently and found out a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 supervisor and state provide me a loan it doesn’t 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 become yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away very soon you got to discover everything about it let’s talk staff member 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 offered businesses 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 difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund okay go on sorry I simply have to make sure we got that point I imply that’s a huge difference a loan versus cash cash I like cash 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 difficult check in the mail where you get real cash from the internal revenue service all right so let’s talk about how it works since it sounds like to me if it’s a if it’s worker retention credit that person 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 employees right you needed to have actually 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 eligible so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part cash just how much can you return 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 a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the chaos 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 up to 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s big obviously now the big question is why does nobody understand about this due to the fact that appearance when I first became aware of this when I initially met Josh you know I have actually got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I don’t think it since I utilize the PPP we went through the money 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 utilized them wisely to survive during the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my politician friends Governor Senators they didn’t know 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 individuals told me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s fascinating you’re talking about the banks Kevin due to the fact that in the PPP loan process 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 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 simply process procedure that’s all um and here there was mayhem because keep in mind in the original cares act you might not do both programs so if you had done PPP you might not do ERC in the original program and when they changed 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 ever made it clear to anyone about how to.
do this does your CFO know how to do this not truly she or he’s never ever done it before 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 accounting professional’s never done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually stayed in business since 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our huge big business customers have worked with bottom line to recuperate other federal government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, employer whose business is totally or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is readily available to all employers regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is totally 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 similar quarter in 2019. Once the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes differs by whether an employer had, typically, basically than.
100 workers in 2019.
Companies that specialize in ERC filing support normally supply expertise and assistance to help services navigate the intricate procedure of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Maximum
Eligibility Assessment: These companies will assess your company’s eligibility for the ERC based on aspects such as your market, income, and operations. They can help figure out if you satisfy the requirements for the credit and determine the maximum credit amount you can declare.
Documents and Calculation: ERC filing services will assist in collecting the required documentation, such as payroll records and monetary declarations, to support your claim. They will also help determine the credit quantity based on qualified salaries and other certifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can evaluate your past payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you modify prior tax returns to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the required types and paperwork in your place. This consists of finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have actually progressed over time. These companies remain upgraded with the latest modifications and make sure that your filings abide by the most current guidelines. If the IRS requests additional info or carries out an audit related to your ERC claim, they can likewise provide continuous assistance.
It is essential to research study and veterinarian any business offering ERC filing support to ensure their reliability and knowledge. Search for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who use ERC submitting support.
Bear in mind that while these business can provide important support, it’s constantly a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to motivate companies to keep and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To qualify, employers must meet one of two requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As discussed previously, 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 specified as a 20% decrease in gross invoices 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 company’s share of Social Security taxes. The credit amount amounts to a portion (up to 70%) of certified salaries paid to employees, consisting of certain health insurance expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they got a PPP loan. However, the exact 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 enhanced, permitting qualified companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for organizations to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the company.
It is essential to keep in mind that the ERC arrangements and eligibility requirements have actually progressed in time. The best course of action is to seek advice from a tax expert or go to the official IRS site for the most detailed and current details regarding the ERC, consisting of any recent legal modifications or updates.
To qualify for the ERC, a service should satisfy one of the following requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease 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.
The ERC is available to companies of all sizes, consisting of tax-exempt companies, however there are some exceptions. For instance, government entities and businesses that got a PPP loan may have limitations on claiming the credit.
The procedure for declaring the ERC involves completing the required types and consisting of the credit on your employment tax return (generally Kind 941). The exact time it takes to process the credit can differ based on a number of factors, consisting of the complexity of your service and the workload of the IRS. It’s recommended to consult with a tax expert for assistance specific to your scenario.
There are numerous business that can assist with the procedure of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some widely known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and get in touch with these companies directly to ask about their services and costs.
Please note that the details offered here is based on basic understanding and may not reflect the most current updates or changes to the ERC. It is necessary to consult with a tax professional or go to the official internal revenue service site for the most up-to-date and accurate information concerning eligibility, claiming procedures, and offered assistance.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on wages paid to all staff members 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 employer still gets the credit.
Greater than 100. If the company had more than 100 staff members typically in 2019, then the credit is.
allowed only for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments however also a part of the expense of employer.
offered healthcare. Employee Retention Credit Maximum
Payment.
Employers can be right away repaid for the credit by minimizing the amount of payroll taxes they.