Lets talk first about Employee Retention Credit Reporting :
Our team here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly provide a beautiful breakfast and have people actually discover 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 millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I indicate you know if you simply begin to take a look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I mean think about how many real clients that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you know when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything until they in fact get the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their savings account and they can genuinely trust Wonder trust that the procedure has actually been ended up and how many you think you’ve processed because you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you require 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 Fantastic here you’re at my YouTube channel we’re talking about something really essential today the worker retention credit which the majority of you have actually never ever become aware of I definitely hadn’t heard of it till very just recently and learned a lot about it since this is most likely 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 founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just phone 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 all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away soon you got to discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund okay go on sorry I just have to make sure we got that point I mean that’s a big distinction a loan versus money money I like cash cash that’s what we’re discussing okay 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 actual cash from the internal revenue service 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 staff member retention credit that individual had to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have owned an organization however it’s based on you having W-2 employees 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 eligible 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 stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my preferred part money just how much can you get back per staff member 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 five thousand dollars per employee 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 happen um they simply altered the rules in.
2021 versus because the mayhem of the pandemic so they wanted to even get more to keep those employees 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 occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP money would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars a person 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 huge certainly now the big concern is why does nobody learn about this due to the fact that appearance when I first found out about this when I first met Josh you understand I’ve got lots of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make many many investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I do not believe it because I use 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 carefully to survive throughout the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my politician good friends Governor Senators they didn’t know about it I suggest that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody know about the employee retention credit you understand what’s fascinating you’re discussing the banks Kevin because in the PPP loan procedure 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 big 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 turmoil since remember in the initial cares act you could not do both programs so if you had actually done PPP you could refrain from doing ERC in the original 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 government never made it clear to any person about how to.
do this does your CFO understand how to do this not really she or he’s never done it in the past 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 company your accountant no your accounting professional’s never done this before unless you have an account that went into this company 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 federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have actually dealt with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose business is fully or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all employers despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a comparable 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 wages paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes differs by whether a company had, usually, basically than.
100 staff members in 2019.
Companies that focus on ERC filing help usually provide proficiency and support to assist companies navigate the complicated process of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Reporting
Eligibility Assessment: These companies will examine your organization’s eligibility for the ERC based on factors such as your industry, income, and operations. They can assist figure out if you meet the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Computation: ERC filing services will help in gathering the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit quantity based on eligible wages and other certifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can review your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you change prior tax returns to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the needed kinds and paperwork in your place. This includes finishing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have progressed with time. These business stay updated with the latest modifications and guarantee that your filings abide by the most present standards. If the IRS demands extra details or carries out an audit associated to your ERC claim, they can also offer continuous assistance.
It is essential to research and veterinarian any company providing ERC filing support to ensure their reliability and proficiency. Look for established firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax professionals who provide ERC filing support.
Keep in mind that while these business can offer valuable assistance, it’s always an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will help you make informed choices and guarantee 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 objective of the ERC is to motivate organizations to retain and pay their employees during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, companies need to fulfill one of two criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As pointed out earlier, for 2021, a significant decrease is specified as a 20% decrease 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 receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices 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 is equal to a percentage (approximately 70%) of certified salaries paid to workers, consisting of particular health insurance expenses. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got an Income Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they received a PPP loan. However, the very same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, permitting eligible employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers a chance for organizations to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Type 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the company.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have developed with time. The best strategy is to seek advice from a tax expert or go to the main internal revenue service site for the most detailed and current information concerning the ERC, including any current legislative changes or updates.
To get approved for the ERC, a service must meet among the following criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Federal government entities and companies that got a PPP loan may have constraints on declaring the credit.
The process for declaring the ERC includes finishing the necessary kinds and including the credit on your work income tax return (typically Kind 941). The exact time it requires to process the credit can vary based on numerous aspects, consisting of the complexity of your service and the work of the internal revenue service. It’s recommended to talk to a tax professional for assistance particular to your scenario.
There are a number of business that can assist with the procedure of claiming the ERC. Some popular business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information offered here is based on basic understanding and might not reflect the most current updates or modifications to the ERC. It is essential to speak with a tax expert or visit the official IRS site for the most precise and current info concerning eligibility, claiming treatments, and available help.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on salaries paid to all staff members 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 company had more than 100 staff members on average in 2019.
permitted just for wages paid to workers who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply money payments but also a portion of the expense of company.
offered healthcare. Employee Retention Credit Reporting
Employers can be immediately reimbursed for the credit by lowering the quantity of payroll taxes they.