Lets talk first about Employee Retention Credit New Employees :
Our group here what do these guys doing everybody in this space is helping teach individuals about ERC and uh always provide a stunning breakfast and have people actually learn about the program we need to head to the space where we are able to show a few of the checks that we are getting for business and I wish to see that what is this this is uh numerous countless dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I suggest you understand if you simply begin 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 consider how many real clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you know when you
receive this you understand the check is gone for sure and that’s when they pay so they do not pay anything till they actually get the money they do not pay bottom line Wonder trust anything till 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 process has actually been finished and the number of you think you’ve processed given that you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you need you require experts 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 Terrific here you’re at my YouTube channel we’re discussing something actually essential today the staff member retention credit which the majority of you have never ever become aware of I definitely had not heard of it up until very just recently and discovered a lot about it because this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just call your bank manager and say 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’ve become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very soon you got to discover everything about it let’s talk worker 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 provided businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone 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.
fix the money money payroll tax refund fine go on sorry I simply need to ensure we got that point I indicate that’s a huge distinction a loan versus money cash I like money cash that’s what we’re speaking about 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real cash from the IRS all right so let’s talk about how it works because it sounds like to me if it’s a if it’s worker retention credit that person needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you needed to have actually owned a service however it’s based upon you having W-2 workers 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 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 correct 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 three of 2021. okay 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 cash 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 an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that take place um they just altered the rules in.
2021 versus due to the fact that the mayhem 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 as much as five thousand Max and after that 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 six thousand dollars per employee that is since that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere 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 workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the big concern is why does nobody understand about this due to the fact that look when I first heard about this when I initially met Josh you know I have actually got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous lots of 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 think it due to the fact that I utilize the PPP we went through the money 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 deserved and we utilized them carefully to survive throughout the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even called to my political leader friends Guv Senators they didn’t learn about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a bunch of individuals told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody know about the staff member retention credit you know what’s interesting you’re speaking about the banks Kevin due to the fact that 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 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 procedure procedure that’s all um and here there was mayhem due to the fact that 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 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 federal government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not actually 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 a few of them are doing it as a payroll business your accountant no your accounting professional’s never done this before unless you have an account that went into this service 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 recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work chance 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.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
employer whose organization is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Schedule.
1. The credit is offered to all employers no matter size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of a similar 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 earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether a company had, typically, basically than.
100 employees in 2019.
Companies that specialize in ERC filing support typically offer competence and assistance to assist businesses navigate the complex process of claiming the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit New Employees
Eligibility Evaluation: These business will evaluate your company’s eligibility for the ERC based upon elements such as your market, earnings, and operations. If you satisfy the requirements for the credit and recognize the optimum credit quantity you can claim, they can assist identify.
Documentation and Calculation: ERC filing services will help in collecting the necessary documents, such as payroll records and monetary statements, to support your claim. They will likewise help compute the credit amount based upon eligible incomes and other qualifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to determine potential opportunities for retroactive credits. They can help you amend previous tax returns to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the necessary types and documentation in your place. This includes finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have developed over time. These companies stay upgraded with the latest changes and ensure that your filings abide by the most present guidelines. If the IRS requests extra info or performs an audit associated to your ERC claim, they can also offer ongoing support.
It is necessary to research study and vet any business providing ERC filing help to ensure their trustworthiness and knowledge. Try to find recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who use ERC filing support.
Remember that while these business can offer important assistance, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate services to retain and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit services, tax-exempt companies, and certain governmental entities. To qualify, companies must satisfy one of two requirements:.
Business operations were completely or partially 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 considerable decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the exact 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 quantity amounts to a portion (up to 70%) of certified incomes paid to workers, including specific health plan 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: At first, services that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they got a PPP loan. The very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, enabling qualified employers to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, normally Kind 941. The excess can be refunded to the company if the credit goes beyond the amount of work taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have developed over time. The best strategy is to talk to a tax professional or go to the main IRS website for the most comprehensive and current info relating to the ERC, consisting of any current legal modifications or updates.
To qualify for the ERC, a business should fulfill one of the following requirements:.
The business operations were fully 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 considerable decrease is defined as a 20% decline in gross invoices compared to the very 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% decline in gross receipts compared to the instantly preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For instance, government entities and companies that received a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC includes finishing the needed forms and including the credit on your employment income tax return (typically Type 941). The exact time it takes to process the credit can differ based on a number of aspects, consisting of the complexity of your service and the workload of the IRS. It’s advised to consult with a tax professional for guidance specific to your circumstance.
There are numerous companies that can help with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some well-known companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these business straight to inquire about their services and charges.
Please keep in mind that the information supplied here is based upon general knowledge and may not show the most current updates or modifications to the ERC. It’s important to seek advice from a tax professional or visit the official internal revenue service website for the most current and accurate info regarding eligibility, claiming procedures, and available support.
Less than 100. If the company had 100 or fewer employees typically in 2019, then the credit is based.
on earnings paid to all employees whether they really worked or not. To put it simply, even if the.
employees worked full-time and earned money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
enabled just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply cash payments but also a part of the cost of employer.
offered health care. Employee Retention Credit New Employees
Payment.
Employers can be instantly reimbursed for the credit by decreasing the quantity of payroll taxes they.