Lets talk first about Employee Retention Credit Ppp Loan Forgiveness :
Our team here what do these people doing everyone in this room is helping teach people about ERC and uh constantly provide a beautiful breakfast and have individuals actually learn more about the program we need to head to the room where we are able to show a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I mean you know if you just begin 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 suggest it’s simply I suggest think about the number of real customers 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 understand when you
get this you understand the check is opted for sure and that’s when they pay so they don’t pay anything until they actually receive the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their savings account and they can truly trust Wonder trust that the process has actually been ended up and how many you think you’ve processed because you began this we’re about 35 000 of these for
about six 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re speaking about something actually crucial today the worker retention credit which most of you have never ever become aware of I certainly hadn’t heard of it until really recently and learned a lot about it because this is probably the lowest cost 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 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 hard this isn’t like PPP we simply phone your bank manager and say give 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’ve become yes the Ambassador and paid spokesperson for this I like this program it’s going away 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 throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund okay go on sorry I simply have to ensure we got that point I imply that’s a huge difference a loan versus cash money I like money money that’s what we’re discussing 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 gorgeous tough check in the mail where you get actual cash from the internal revenue service 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 had to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have actually owned an organization however it’s based upon 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 qualified 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 right so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 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 throughout that duration now let’s talk my favorite part cash how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the employee’s salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that 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 up to five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of cash it is now there’s a caveat here the PPP money would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s say hypothetically you owned a restaurant 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 substantial obviously now the huge concern is why does nobody learn about this because appearance when I initially became aware of this when I initially satisfied Josh you understand I’ve got lots of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of many investments in entrepreneurs of which lots of suffered through the pandemic when I first found out about this I called BS I do not think 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 which were well been worthy of and we used them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even called to my politician buddies Governor Senators they didn’t understand about it I indicate that’s how you understand 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 due to the fact that you took the PPP also not true so let’s ask Josh why does no one understand about the worker retention credit you know what’s intriguing you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it very 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was mayhem due to the fact that remember in the original cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the initial program and when they changed 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 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 a few of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this business and bottom line my firm Kevin has been in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big business clients have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
company whose service is totally or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all companies regardless of size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries differs by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing help generally offer competence and support to help services browse the complicated procedure of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Ppp Loan Forgiveness
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based upon aspects such as your industry, revenue, and operations. They can help determine if you meet the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Computation: ERC filing services will assist in collecting the required documents, such as payroll records and financial statements, to support your claim. They will also assist determine the credit quantity based upon qualified salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you change prior tax returns to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the necessary types and documentation in your place. This consists of completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have progressed gradually. These companies stay updated with the most recent changes and guarantee that your filings adhere to the most present guidelines. If the Internal revenue service demands additional info or conducts an audit associated to your ERC claim, they can likewise offer continuous support.
It’s important to research and veterinarian any company using ERC filing help to guarantee their credibility and knowledge. Try to find recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax experts who offer ERC submitting support.
Remember that while these companies can supply important assistance, it’s always a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and ensure 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 steps. The goal of the ERC is to encourage companies to maintain and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, companies need to meet one of two requirements:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As mentioned earlier, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline 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 immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (as much as 70%) of certified earnings paid to workers, consisting of specific health plan expenses. The optimum 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 got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they got a PPP loan. However, the 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, permitting qualified companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers a chance for services to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, normally Kind 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have evolved in time. The very best strategy is to consult with a tax professional or check out the official internal revenue service website for the most up-to-date and in-depth info regarding the ERC, including any current legal modifications or updates.
To qualify for the ERC, a company should fulfill among the following requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices 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 organizations of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and services that got a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes completing the required kinds and consisting of the credit on your employment tax return (usually Kind 941). The exact time it takes to process the credit can differ based upon numerous elements, including the complexity of your service and the workload of the IRS. It’s suggested to speak with a tax expert for assistance particular to your circumstance.
There are several companies that can help with the procedure of declaring the ERC. Some popular companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based on basic knowledge and may not show the most current updates or modifications to the ERC. It is essential to talk to a tax expert or visit the official internal revenue service site for the most precise and current information relating to eligibility, declaring treatments, and available assistance.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on salaries paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
allowed just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” includes not just money payments but also a portion of the cost of company.
offered health care. Employee Retention Credit Ppp Loan Forgiveness
Companies can be right away reimbursed for the credit by minimizing the quantity of payroll taxes they.