Lets talk first about Employee Retention Credit Mr Wonderful :
Our team here what do these guys doing everyone in this room is assisting teach people about ERC and uh always supply a gorgeous breakfast and have individuals truly learn more about the program we need to head to the space where we are able to show some of the checks that we are getting for business and I wish 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 confirming that the check is on the way I suggest you understand if you simply start to take a look at a few of these here I suggest 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 of the number of real clients 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 internal revenue service heading to the client so that’s how you have the ability to track it you understand when you
get this you know the check is gone for sure and that’s when they pay so they do not pay anything up until they in fact receive the cash they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their bank account and they can truly rely on Wonder trust that the process has actually been completed and how many you think you have actually processed considering that you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you need you need experts 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 Terrific here you’re at my YouTube channel we’re speaking about something really crucial today the employee retention credit which the majority of you have actually never ever heard of I certainly hadn’t become aware of it until extremely just recently and learned a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I’ve got the specialist 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 difficult this isn’t like PPP we just phone 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 ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered companies 3 chances 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund okay go on sorry I just have to ensure we got that point I imply that’s a huge difference 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 initial cares Act is the ERC and yes Kevin it is a gorgeous difficult check in the mail where you get real money from the IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s employee retention credit that individual needed 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 investors it’s for staff members right you had to have actually owned an organization however it’s based on you having W-2 workers 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 have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my favorite part money just how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to a maximum 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 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a lot of cash it is now there’s a caution here the PPP cash would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment 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 internal revenue service so it’s huge clearly now the huge question is why does no one learn about this because appearance when I initially found out about this when I initially met Josh you understand I have actually got great deals of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous lots of financial investments in business owners of which numerous suffered through the pandemic when I initially found out about this I called BS I do not believe it since I utilize 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 stay alive during the pandemic so when I heard about this I stated nah it can’t be true however when I dug around I even called to my political leader good friends Guv Senators they didn’t know about it I mean that’s how you know that’s how misinformation is that there’s no info out there then a lot of individuals informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody know about the staff member retention credit you understand what’s interesting you’re speaking about the banks Kevin because 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was chaos because keep in mind in the original cares act you might refrain from doing both programs so if you had actually 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 since 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 understand how to do this not truly he or she’s never 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 company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has actually been in business because 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have actually dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee 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 as much as $10,000 in incomes paid by an.
Because of COVID-19 or whose gross receipts, employer whose company is completely or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
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 overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether an employer had, on average, more or less than.
100 employees in 2019.
Companies that focus on ERC filing help usually offer proficiency and assistance to help businesses navigate the intricate procedure of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Mr Wonderful
Eligibility Evaluation: These companies will assess your company’s eligibility for the ERC based upon elements such as your market, profits, and operations. They can help figure out if you meet the requirements for the credit and identify the maximum credit amount you can claim.
Documents and Calculation: ERC filing services will assist in collecting the essential documents, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit amount based upon qualified wages and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can review your previous payroll records and financials to identify potential chances for retroactive credits. They can assist you amend previous income tax return to claim these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the needed forms and paperwork on your behalf. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually developed in time. These companies stay upgraded with the current modifications and guarantee that your filings abide by the most present standards. They can also provide ongoing assistance if the internal revenue service demands additional information or carries out an audit related to your ERC claim.
It is essential to research study and vet any business using ERC filing help to guarantee their credibility and proficiency. Try to find recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who provide ERC submitting assistance.
Bear in mind that while these business can supply valuable assistance, it’s constantly a great idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and guarantee 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 steps. The goal of the ERC is to motivate companies to maintain and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit organizations, tax-exempt organizations, and particular governmental entities. To certify, companies need to meet one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As mentioned previously, for 2021, a substantial decrease is defined 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 invoices compared to the same quarter in 2019, or a 20% decrease 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 percentage (approximately 70%) of certified incomes paid to staff members, including specific health plan expenses. 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, services that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. The exact same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, permitting qualified companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for organizations to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, normally Type 941. The excess can be refunded to the company if the credit exceeds the amount of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have developed over time. The very best strategy is to consult with a tax expert or go to the main internal revenue service site for the most detailed and updated info regarding the ERC, including any current legal modifications or updates.
To receive the ERC, an organization needs to meet one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a significant decline 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% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC involves completing the needed forms and including the credit on your employment income tax return (typically Form 941). The exact time it requires to process the credit can vary based upon a number of elements, including the complexity of your business and the work of the IRS. It’s recommended to speak with a tax expert for assistance particular to your situation.
There are a number of companies that can assist with the process of declaring the ERC. Some well-known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based on basic understanding and may not show the most recent updates or changes to the ERC. It is very important to seek advice from a tax expert or visit the main internal revenue service website for the most current and precise information concerning eligibility, declaring treatments, and offered help.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on salaries paid to all staff members whether they really worked or not. Simply put, even if the.
workers worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 employees usually in 2019, then the credit is.
enabled only for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” includes not just cash payments but likewise a portion of the cost of employer.
supplied health care. Employee Retention Credit Mr Wonderful
Companies can be instantly reimbursed for the credit by lowering the quantity of payroll taxes they.