Lets talk first about Employee Retention Credit Reddit :
Our team here what do these people doing everybody in this space is helping teach individuals about ERC and uh always offer a lovely breakfast and have individuals actually learn more about the program we ought to head to the room where we have the ability 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 hundreds of millions of 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 method I suggest you know if you just start to look at some of these here I indicate 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 the number of real clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated 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
receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything until they really receive the money they do not pay bottom line Wonder trust anything until this letter is confirmed 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 ended up and how many you think you have actually processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing which’s what you need you require professionals 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 Wonderful here you’re at my YouTube channel we’re talking about something actually crucial today the worker retention credit which most of you have never become aware of I definitely had not become aware of it until really just recently and found out a lot about it since this is probably the lowest expense 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 Ideas 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 simply call up your bank supervisor and state give me a loan it does not 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 ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money money payroll tax refund okay go on sorry I simply have to ensure we got that point I mean that’s a big difference a loan versus cash money I like money money that’s what we’re talking about 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 lovely hard 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 sounds like to me if it’s a if it’s employee retention credit that person had to be an employee so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for staff members right you needed to have owned a service however it’s based on you having W-2 employees 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 have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my favorite part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the chaos 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 occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a lot of cash it is now there’s a caveat here the PPP money would have to be decreased from the twenty 6 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 somewhere around 10 thousand dollars a person 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 money you would still get a million dollar in the mail from the IRS so it’s huge undoubtedly now the huge question is why does nobody know about this since look when I initially became aware of this when I first fulfilled Josh you understand I have actually got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make many many financial investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of this I called BS I do not believe it due to the fact that I use 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 been worthy of and we utilized them sensibly to stay alive throughout the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t know about it I imply that’s how you understand 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 no one learn about the staff member retention credit you understand what’s fascinating you’re talking about the banks Kevin due to the fact that 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 just process process that’s all um and here there was chaos because remember in the initial 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 altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not truly she or he’s never done it before 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 business your accounting professional no your accounting professional’s never done this prior to unless you have an account that entered into this business and bottom line my company Kevin has stayed in business because 2009 and we’ve been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have actually worked with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Because of COVID-19 or whose gross receipts, employer whose company is totally or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is totally or partly suspended by 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. As soon as the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings varies by whether a company had, typically, more or less than.
100 staff members in 2019.
Business that concentrate on ERC filing support typically offer knowledge and support to help organizations browse the complex procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Reddit
Eligibility Evaluation: These business will examine your company’s eligibility for the ERC based on factors such as your market, profits, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can declare, they can assist figure out.
Documents and Computation: ERC filing services will assist in gathering the needed paperwork, such as payroll records and financial statements, to support your claim. They will likewise help determine the credit amount based on qualified salaries and other qualifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to recognize potential chances for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the required kinds and documents in your place. This consists of finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have actually evolved over time. These business remain upgraded with the most recent modifications and ensure that your filings comply with the most present guidelines. They can also provide continuous support if the internal revenue service requests additional information or carries out an audit related to your ERC claim.
It is necessary to research and veterinarian any business offering ERC filing support to guarantee their credibility and proficiency. Search for established companies with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who provide ERC submitting support.
Remember that while these business can provide important help, it’s constantly a great idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to encourage organizations to keep and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, employers need to meet one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. As pointed out earlier, for 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (as much as 70%) of qualified incomes paid to staff members, consisting of particular health insurance 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, organizations that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. The very same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing qualified employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, usually Form 941. If the credit exceeds the amount of work taxes owed, the excess can be refunded to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have actually progressed in time. The very best strategy is to consult with a tax professional or go to the official internal revenue service site for the most current and detailed information relating to the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, an organization should fulfill among the following criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and businesses that received a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC includes completing the needed kinds and consisting of the credit on your employment income tax return (usually Type 941). The exact time it takes to process the credit can differ based on numerous aspects, consisting of the intricacy of your business and the work of the IRS. It’s advised to consult with a tax professional for guidance specific to your scenario.
There are numerous business that can help with the procedure of claiming the ERC. Some widely known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based upon basic knowledge and may not show the most current updates or modifications to the ERC. It is very important to speak with a tax professional or check out the official internal revenue service website for the most accurate and up-to-date information regarding eligibility, claiming treatments, and offered help.
Less than 100. If the company had 100 or fewer staff members typically in 2019, then the credit is based.
on wages paid to all employees whether they really worked or not. Simply put, even if the.
employees worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
permitted just for incomes paid to workers who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments but likewise a part of the cost of company.
offered health care. Employee Retention Credit Reddit
Employers can be right away compensated for the credit by lowering the quantity of payroll taxes they.