Lets talk first about Employee Retention Credit Part-time Employees :
Our team here what do these men doing everyone in this room is assisting teach individuals about ERC and uh always supply a gorgeous breakfast and have people really discover the program we should head to the space where we are able to display some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the method I imply you know if you simply start to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I suggest think of how many actual clients that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client 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 which’s when they pay so they do not pay anything up until they actually receive the money they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the method they deposit it into their savings account and they can truly trust Wonder trust that the process has been ended up and how many you think you’ve processed considering that 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 need you need 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 Wonderful here you’re at my YouTube channel we’re discussing something really essential today the staff member retention credit which most of you have actually never ever become aware of I certainly hadn’t heard of it up until really recently and learned a lot about it because this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call your bank manager and say provide 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 enjoy this program it’s disappearing soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I simply need to make sure we got that point I imply that’s a big distinction a loan versus cash cash I like cash money that’s what we’re talking about all right 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 hard check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works because 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 Presumption this cash is not for the owner not for people on the cap table not for shareholders it’s for workers right you needed to have actually owned a business but it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 workers 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 correct so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part money how much can you get back per employee that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s wage to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s wage to a maximum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the turmoil of the pandemic so they wished to even get more to keep those staff members 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 happens 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 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 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 obviously now the huge concern is why does nobody understand about this due to the fact that appearance when I first found out about this when I first met Josh you understand I have actually got lots of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make numerous numerous financial investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe it since I utilize the PPP we went through the cash 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 been worthy of and we used them sensibly to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even contacted us to my politician friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does no one understand about the worker retention credit you know what’s fascinating you’re speaking about the banks Kevin since 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 country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process 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 actually 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 since 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 understand how to do this not actually she or he’s never done it before do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that went into this service and bottom line my firm Kevin has stayed in business because 2009 and we’ve been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big big corporate clients have worked with bottom line to recuperate other government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose business is fully or partially suspended.
decline by more than 50%.
1. The credit is available to all companies no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s company is totally or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. When the.
company’s gross invoices exceed 80% of a similar 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 certifying salaries paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The definition of certifying incomes varies by whether a company had, usually, basically than.
100 workers in 2019.
Companies that concentrate on ERC filing help typically offer proficiency and support to assist services browse the complicated procedure of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Part-time Employees
Eligibility Evaluation: These companies will examine your company’s eligibility for the ERC based upon factors such as your industry, profits, and operations. They can assist determine if you fulfill the requirements for the credit and determine the maximum credit amount you can declare.
Documentation and Estimation: ERC filing services will help in collecting the necessary documents, such as payroll records and monetary declarations, to support your claim. They will likewise help calculate the credit amount based upon eligible wages and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these business can review your previous payroll records and financials to identify potential opportunities for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the necessary kinds and paperwork in your place. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have evolved with time. These companies remain updated with the most recent modifications and make sure that your filings adhere to the most existing standards. They can likewise offer ongoing assistance if the IRS requests extra details or conducts an audit related to your ERC claim.
It is essential to research and vet any business providing ERC filing support to guarantee their trustworthiness and proficiency. Look for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax specialists who provide ERC filing support.
Remember that while these companies can supply important help, it’s constantly a good idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed choices and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate companies to keep and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To certify, employers should meet one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As pointed out previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a percentage (up to 70%) of qualified incomes paid to employees, consisting of certain health insurance costs. 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, organizations that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. However, the very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, enabling qualified companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers a chance for organizations to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, generally Form 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC provisions and eligibility criteria have actually progressed with time. The best strategy is to talk to a tax expert or visit the main IRS website for the most detailed and current details relating to the ERC, including any recent legislative modifications or updates.
To qualify for the ERC, a company must satisfy among the following criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is defined 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.
The ERC is available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For example, government entities and businesses that got a PPP loan might have limitations on declaring the credit.
The procedure for claiming the ERC involves completing the needed types and consisting of the credit on your employment tax return (generally Kind 941). The exact time it requires to process the credit can vary based on numerous factors, consisting of the intricacy of your organization and the workload of the internal revenue service. It’s suggested to seek advice from a tax professional for assistance particular to your circumstance.
There are numerous companies that can help with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some widely known companies that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these companies straight to inquire about their services and charges.
Please note that the information supplied here is based on basic understanding and may not show the most current updates or modifications to the ERC. It is very important to consult with a tax professional or check out the official IRS website for the most accurate and updated details concerning eligibility, claiming procedures, and available support.
Less than 100. If the employer had 100 or fewer staff members typically in 2019, then the credit is based.
on incomes paid to all workers whether they actually worked or not. In other words, even if the.
workers 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 workers on average in 2019, then the credit is.
enabled just for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just money payments however likewise a portion of the cost of company.
provided healthcare. Employee Retention Credit Part-time Employees
Employers can be immediately repaid for the credit by lowering the quantity of payroll taxes they.