Lets talk first about Employee Retention Credit New Stimulus Package :
Our group here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh constantly supply a stunning breakfast and have people really find out about the program we must head to the space where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I suggest you understand if you just start to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I imply think about how many actual 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 client so that’s how you have the ability to track it you know when you
get this you understand the check is opted for sure and that’s when they pay so they don’t pay anything up until they in fact receive the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their checking account and they can really trust Wonder trust that the process has been finished and the number of you believe you’ve processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you require 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 Terrific here you’re at my YouTube channel we’re discussing something really important today the worker retention credit which the majority of you have never ever become aware of I certainly had not heard of it until really recently and discovered a lot about it since this is probably the lowest cost of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just call up your bank supervisor and state provide me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I like this program it’s going away soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money money payroll tax refund fine go on sorry I simply have to ensure we got that point I indicate that’s a huge difference a loan versus money cash I like cash money 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 tough check in the mail where you get real money from the IRS 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 staff member retention credit that person needed to be a staff member so I’m going to make the Assumption this cash 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 owned a service but it’s based upon you having W-2 employees in America not 10.99. As long as you had W-2 employees and you paid federal payroll taxes that’s why you would be qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s wage to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to a maximum of seven thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the turmoil 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 up to 5 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 6 thousand dollars per worker that is since that’s a great deal of money it is now there’s a caveat here the PPP money would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York 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 internal revenue service so it’s substantial obviously now the huge concern is why does no one understand about this since appearance when I first became aware of this when I initially satisfied Josh you know I have actually got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t think it because I utilize the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them wisely to survive during the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even called to my political leader pals Governor Senators they didn’t know about it I imply that’s how you understand that’s how misinformation is that there’s no info out there then a lot of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody know about the worker retention credit you know what’s intriguing you’re discussing the banks Kevin due to the fact that in the PPP loan process the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process process 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 since keep in mind in the original cares act you might not do both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered 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 ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never 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 accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this business and bottom line my firm Kevin has been in business since 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big corporate customers have worked 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 home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
company whose business is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all employers regardless of size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
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 incomes paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings differs by whether an employer had, typically, basically than.
100 employees in 2019.
Business that specialize in ERC filing assistance normally offer know-how and assistance to assist organizations navigate the complicated procedure of claiming the credit. They can use various services, including:.
How is the employee retention credit calculated? Employee Retention Credit New Stimulus Package
Eligibility Assessment: These companies will evaluate your business’s eligibility for the ERC based upon factors such as your industry, revenue, and operations. If you meet the requirements for the credit and determine the maximum credit amount you can declare, they can assist figure out.
Paperwork and Calculation: ERC filing services will help in collecting the required documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit quantity based upon eligible incomes and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to determine possible opportunities for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the needed forms and documentation in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have progressed gradually. These business remain updated with the most recent changes and guarantee that your filings comply with the most current guidelines. If the Internal revenue service demands additional info or conducts an audit related to your ERC claim, they can likewise supply continuous assistance.
It’s important to research study and veterinarian any business using ERC filing help to guarantee their reliability and expertise. Search for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax experts who use ERC filing assistance.
Bear in mind that while these companies can provide valuable 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 choices and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to motivate businesses to keep and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible employers, including for-profit organizations, tax-exempt companies, and specific governmental entities. To qualify, employers need to fulfill one of two requirements:.
The business operations were totally 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 specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of certified incomes paid to workers, including particular health plan costs. The maximum 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 received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they received a PPP loan. The exact same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, permitting qualified employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, normally Form 941. The excess can be refunded to the employer if the credit goes beyond the amount of employment taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually progressed in time. The best strategy is to talk to a tax professional or visit the main internal revenue service website for the most in-depth and current details regarding the ERC, including any recent legal modifications or updates.
To receive the ERC, a business should fulfill among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and services that got a PPP loan may have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the essential types and including the credit on your work income tax return (generally Form 941). The exact time it takes to process the credit can differ based upon several aspects, consisting of the complexity of your service and the work of the internal revenue service. It’s suggested to consult with a tax professional for guidance particular to your situation.
There are a number of companies that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some popular business that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these business straight to inquire about their fees and services.
Please note that the details provided here is based upon basic knowledge and may not show the most current updates or modifications to the ERC. It’s important to speak with a tax professional or go to the official IRS website for the most updated and accurate details regarding eligibility, claiming treatments, and offered assistance.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on wages paid to all employees whether they really worked or not. In other words, even if the.
employees 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 staff members usually in 2019, then the credit is.
allowed only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “wages” includes not just money payments however also a part of the cost of employer.
provided healthcare. Employee Retention Credit New Stimulus Package
Employers can be immediately compensated for the credit by lowering the amount of payroll taxes they.