Lets talk first about Employee Retention Credit Scam Calls :
Our group here what do these men doing everybody in this room is helping teach people about ERC and uh always supply a stunning breakfast and have individuals actually learn about the program we ought to head to the room where we have the ability to display 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 clients verifying that the check is on the way I indicate you understand if you just begin to take a 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 mean it’s simply I imply think of the number of 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 validated 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 understand when you
receive this you understand the check is opted for sure and that’s when they pay so they do not pay anything until they actually get the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can truly rely on Wonder trust that the procedure has actually been finished and how many you think 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 which’s what you need you need professionals 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 speaking about something actually essential today the worker retention credit which most of you have actually never heard of I definitely hadn’t heard of it up until really recently and found out a lot about it due to the fact that this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 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 inform all of us about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I love this program it’s going away soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used companies 3 opportunities 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.
remedy the cash money payroll tax refund fine go on sorry I simply need to make sure we got that point I suggest that’s a big distinction a loan versus money money I like money money that’s what we’re discussing 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 beautiful difficult check in the mail where you get actual cash from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s employee retention credit that person needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have owned a service however it’s based on you having W-2 workers 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 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 six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s measured you need to be on the W-2 during that duration 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 computation in 2020 to be precise Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s wage to a maximum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus because 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 5 thousand Max and after that what takes place 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 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 cash would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city 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 substantial certainly now the big question is why does nobody know about this because look when I first became aware of this when I first met Josh you know I have actually got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make lots of many financial investments in business owners of which lots of suffered through the pandemic when I first became aware of this I called BS I do not think it because I utilize the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well deserved and we used them sensibly to survive throughout the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even contacted us to my political leader friends Guv Senators they didn’t learn about it I imply that’s how you know that’s how false information is that there’s no details out there then a lot of individuals informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody understand about the worker retention credit you know what’s intriguing you’re discussing the banks Kevin due to the fact that in the PPP loan process the federal government made it really 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 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 turmoil because remember in the initial cares act you might refrain from doing both programs so if you had 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 because it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO understand how to do this not actually she or he’s never ever 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 business your accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this business and bottom line my company Kevin has been in business because 2009 and we’ve been working 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 business clients have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax joblessness tax work opportunity 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 motivate.
employers to keep staff members 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, employer whose service is fully or partly suspended.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is fully or partially 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 similar quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether a company had, on average, basically than.
100 staff members in 2019.
Business that focus on ERC filing help typically supply knowledge and support to assist services browse the intricate procedure of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Scam Calls
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based on factors such as your industry, profits, and operations. They can help determine if you fulfill the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Estimation: ERC filing services will help in gathering the needed documents, such as payroll records and financial statements, to support your claim. They will also assist compute the credit amount based upon qualified wages and other qualifying expenses.
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 determine prospective chances for retroactive credits. They can assist you modify previous tax returns to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the needed types and documents in your place. This includes finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have actually evolved gradually. These business remain updated with the latest changes and make sure that your filings comply with the most existing standards. They can likewise supply ongoing support if the internal revenue service demands extra info or carries out an audit related to your ERC claim.
It’s important to research study and veterinarian any company providing ERC filing support to ensure their reliability and competence. Look for established companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax experts who use ERC filing support.
Remember that while these companies can supply important support, it’s constantly a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage organizations to maintain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers must satisfy one of two criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As mentioned earlier, for 2021, a significant decrease is defined as a 20% decline 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 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 employer’s share of Social Security taxes. The credit quantity amounts to a percentage (approximately 70%) of qualified wages paid to employees, consisting of specific health plan 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: At first, businesses that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. The very same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, allowing qualified companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides a chance for businesses to amend prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment income tax return, usually Form 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the employer.
It is very important to note that the ERC arrangements and eligibility requirements have progressed in time. The best course of action is to consult with a tax professional or check out the main internal revenue service site for the most updated and comprehensive info relating to the ERC, consisting of any recent legislative modifications or updates.
To receive the ERC, a business needs to meet one of the following requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and companies that got a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC includes completing the needed forms and including the credit on your employment income tax return (generally Kind 941). The exact time it requires to process the credit can differ based upon numerous elements, consisting of the complexity of your organization and the workload of the internal revenue service. It’s recommended to talk to a tax professional for assistance particular to your circumstance.
There are a number of companies that can assist with the procedure of claiming the ERC. Some popular business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based on general understanding and may not show the most current updates or changes to the ERC. It is essential to seek advice from a tax professional or go to the official IRS website for the most current and accurate details concerning eligibility, declaring 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 salaries paid to all employees whether they really worked or not. In other words, even if the.
workers worked full-time and made money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers usually in 2019, then the credit is.
permitted only for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply cash payments however also a part of the cost of employer.
supplied healthcare. Employee Retention Credit Scam Calls
Companies can be right away reimbursed for the credit by decreasing the quantity of payroll taxes they.