Lets talk first about Employee Retention Credit Shareholder :
Our group here what do these guys doing everybody in this room is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have people truly learn more about the program we must head to the room where we are able to show some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I imply you understand if you just start 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 indicate it’s just I mean consider the number of real customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you understand when you
receive this you understand the check is chosen sure which’s when they pay so they do not pay anything up until they in fact get the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they deposit it into their checking account and they can genuinely rely on Wonder trust that the process has actually been finished and the number of you think you’ve processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know 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 Terrific here you’re at my YouTube channel we’re talking about something truly essential today the employee retention credit which the majority of you have never heard of I definitely had not become aware of it up until extremely recently and learned a lot about it since this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members between 5 and five hundred so I have actually got the specialist 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 difficult this isn’t like PPP we simply call up your bank supervisor and say give 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 become yes the Ambassador and paid representative for this I love this program it’s disappearing very soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund all right go on sorry I just need to ensure we got that point I imply that’s a huge distinction a loan versus cash cash I like money money that’s what we’re talking about 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 original cares Act is the ERC and yes Kevin it is a beautiful hard check in the mail where you get actual cash from the IRS all right so let’s talk about how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that person needed 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 had 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 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 have to be on payroll for the very first 6 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 two 3 and four of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you get back 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 income 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 7 thousand per quarter how did that occur um they just changed 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 up to 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you create 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 because that’s a lot of money it is now there’s a caution here the PPP cash would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars a person 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 clearly now the huge concern is why does nobody learn about this since look when I initially heard about this when I first fulfilled Josh you know I’ve got great deals of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it due to the fact that 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 deserved and we used them sensibly to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t understand 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 people told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody know about the worker retention credit you know what’s interesting you’re speaking about the banks Kevin because in the PPP loan process the federal government made it extremely clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 just process procedure that’s all um and here there was mayhem because remember in the original cares act you could not do both programs so if you had actually done PPP you might refrain from doing 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 government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not truly he or she’s never done it previously 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 service and bottom line my firm Kevin has actually been in business given that 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee 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 salaries paid by an.
company whose service is fully or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is readily available to all companies no matter size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is completely or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. When the.
employer’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 quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The meaning of certifying wages varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing assistance normally provide knowledge and support to help businesses browse the intricate procedure of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Shareholder
Eligibility Assessment: These business will examine your service’s eligibility for the ERC based on factors such as your industry, profits, and operations. If you satisfy the requirements for the credit and recognize the maximum credit amount you can declare, they can assist determine.
Documents and Calculation: ERC filing services will help in gathering the necessary paperwork, such as payroll records and monetary statements, to support your claim. They will also help compute the credit quantity based upon qualified salaries and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can examine your past payroll records and financials to identify possible chances for retroactive credits. They can help you modify previous income tax return to claim these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the necessary types and documentation in your place. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have developed over time. These companies remain updated with the latest modifications and ensure that your filings abide by the most current standards. They can also offer ongoing support if the internal revenue service demands extra information or carries out an audit related to your ERC claim.
It is necessary to research study and vet any business offering ERC filing support to ensure their trustworthiness and expertise. Try to find established companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who provide ERC filing support.
Keep in mind that while these companies can supply important help, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to encourage businesses to keep and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit companies, tax-exempt companies, and specific governmental entities. To certify, companies must satisfy one of two requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. As discussed previously, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a portion (as much as 70%) of qualified wages paid to staff members, consisting of particular health plan costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services 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 companies to declare the ERC even if they received a PPP loan. The exact same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, permitting qualified companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for companies to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Type 941. The excess can be reimbursed to the company if the credit goes beyond the amount of employment taxes owed.
It is very important to note that the ERC arrangements and eligibility requirements have actually developed with time. The best course of action is to seek advice from a tax professional or visit the main internal revenue service website for the most current and in-depth information regarding the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a business should meet among the following requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For instance, government entities and companies that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes finishing the needed types and including the credit on your employment income tax return (usually Form 941). The exact time it requires to process the credit can differ based upon a number of factors, including the complexity of your service and the work of the IRS. It’s recommended to talk to a tax expert for assistance specific to your scenario.
There are several companies that can assist with the procedure of declaring the ERC. Some well-known companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based on general knowledge and might not show the most recent updates or modifications to the ERC. It is essential to talk to a tax expert or check out the official IRS website for the most current and accurate details regarding eligibility, claiming treatments, and offered support.
Less than 100. If the company had 100 or less staff members usually in 2019, then the credit is based.
on incomes 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 company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled just for earnings paid to workers who did not work during the calendar quarter.
In both cases, “salaries” consists of not just cash payments but also a portion of the cost of company.
provided healthcare. Employee Retention Credit Shareholder
Companies can be immediately reimbursed for the credit by minimizing the quantity of payroll taxes they.