Lets talk first about Employee Retention Credit San Diego :
Our team here what do these men doing everybody in this room is assisting teach people about ERC and uh constantly provide a gorgeous breakfast and have people truly learn more about the program we ought to head to the room where we are able to show a few of the checks that we are getting for companies and I want 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 customers validating that the check is on the way I indicate you understand if you just start to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I suggest consider how many real customers 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 validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you understand when you
get this you know the check is chosen sure which’s when they pay so they do not pay anything until they in fact get the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their checking account and they can truly rely on Wonder trust that the procedure has actually been ended up and how many you believe you’ve processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need 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 talking about something truly essential today the worker retention credit which most of you have actually never heard of I certainly hadn’t heard of it up until very just recently and learned a lot about it since this is probably the most affordable cost of capital for any small company anywhere
anytime if you have workers in between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Ideas 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 simply call your bank manager and say offer me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations 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 huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund alright go on sorry I just have to ensure we got that point I indicate that’s a huge difference a loan versus money cash I like cash cash that’s what we’re talking 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 difficult check in the mail where you get real cash from the IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s worker retention credit that individual had to be a staff member so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have owned an organization but it’s based on you having W-2 staff members in America not 10.99. As long as you had W-2 staff members 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 very first six months of 2021 on the W-2 proper 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. alright so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you return per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s salary to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wanted 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 approximately five thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a great deal of cash it is now there’s a caution 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 two you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members 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 big concern is why does no one learn about this because appearance when I first became aware of this when I first satisfied Josh you know I’ve got great deals of investments in lots of business I’m a significant supporter for entrepreneurship in America and make numerous lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I first became aware of 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 very easy to do we had our CEOs call the banks they got their loans which were well should have and we utilized them wisely to survive throughout the pandemic so when I became aware of this I said nah it can’t hold true however when I dug around I even called to my political leader friends Guv Senators they didn’t understand about it I imply 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 because you took the PPP likewise not true so let’s ask Josh why does no one understand about the staff member retention credit you understand what’s interesting you’re discussing the banks Kevin because 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 big banks in our nation and they would process procedure 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 chaos since remember in the original cares act you might not do both programs so if you had done PPP you might refrain from doing ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody 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 do not do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this service and bottom line my company Kevin has stayed in business given that 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 huge big business clients have dealt with bottom line to recover other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
employer whose organization is totally or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages varies by whether an employer had, on average, basically than.
100 workers in 2019.
Business that specialize in ERC filing help usually offer competence and support to help organizations browse the complicated procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Employee Retention Credit San Diego
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based upon aspects such as your market, earnings, and operations. If you fulfill the requirements for the credit and recognize the optimum credit quantity you can declare, they can help figure out.
Documentation and Computation: ERC filing services will help in gathering the required paperwork, such as payroll records and financial declarations, to support your claim. They will also help compute the credit amount based on qualified earnings and other qualifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can review your previous payroll records and financials to identify potential opportunities for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and submit the necessary types and paperwork in your place. This includes finishing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have progressed gradually. These business remain updated with the most recent changes and make sure that your filings abide by the most existing standards. They can also provide ongoing assistance if the internal revenue service requests additional details or performs an audit related to your ERC claim.
It is essential to research and veterinarian any business providing ERC filing support to guarantee their reliability and expertise. Search for established firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax professionals who offer ERC filing assistance.
Keep in mind that while these companies can offer valuable assistance, it’s always a great idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified choices and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to motivate organizations to maintain and pay their staff members during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To certify, companies should meet one of two requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As discussed previously, 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 significant decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of qualified incomes paid to staff members, including certain 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, companies that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they received a PPP loan. Nevertheless, the exact same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, allowing qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, normally Kind 941. The excess can be refunded to the company if the credit goes beyond the quantity of work taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility requirements have actually evolved over time. The best strategy is to speak with a tax expert or visit the main IRS website for the most detailed and up-to-date information regarding the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, a service should meet among the following criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a considerable decrease is defined 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% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and companies that received a PPP loan may have restrictions on claiming the credit.
The process for declaring the ERC includes finishing the required forms and including the credit on your work income tax return (usually Type 941). The exact time it requires to process the credit can differ based on numerous factors, consisting of the complexity of your business and the work of the internal revenue service. It’s suggested to speak with a tax professional for assistance particular to your situation.
There are a number of companies that can help with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and contact these business directly to ask about their fees and services.
Please note that the information supplied here is based on general understanding and might not show the most current updates or changes to the ERC. It is very important to talk to a tax expert or visit the official IRS website for the most precise and current information concerning eligibility, claiming treatments, and available support.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on wages paid to all employees whether they really worked or not. Simply put, even if the.
staff members 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 workers on average in 2019.
enabled only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just cash payments but likewise a part of the expense of company.
offered health care. Employee Retention Credit San Diego
Employers can be right away compensated for the credit by reducing the quantity of payroll taxes they.