Lets talk first about Employee Retention Credit Social Security :
Our group here what do these guys doing everybody in this room is assisting teach people about ERC and uh constantly offer a gorgeous breakfast and have people actually discover the program we must head to the space where we have the ability 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 millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I indicate you know if you simply start to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I mean consider the number of actual clients 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 confirmed and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you know when you
get this you know the check is chosen sure and that’s when they pay so they do not pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the way they transfer it into their savings account and they can really trust Wonder trust that the procedure has actually been completed and how many you think you have actually processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you need you require experts 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 speaking about something truly essential today the staff member retention credit which most of you have actually never heard of I definitely hadn’t become aware of it until very just recently and discovered a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just contact 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 all of us about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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 money money payroll tax refund all right go on sorry I simply have to ensure we got that point I imply that’s a huge distinction a loan versus money money I like money money that’s what we’re discussing 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 gorgeous tough check in the mail where you get real cash from the IRS all right so let’s discuss how it works since it sounds like to me if it’s a if it’s staff member retention credit that individual 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 investors it’s for workers right you needed to have owned a business however it’s based upon 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 first six months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. okay 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 get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 as much as five thousand Max and then 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 worker that is because that’s a lot of cash 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 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual 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 IRS so it’s big certainly now the huge question is why does no one understand about this due to the fact that look when I first found out about this when I initially satisfied Josh you understand I have actually got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I do not believe it due to the fact that 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 which were well been worthy of and we utilized them carefully to survive during 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 buddies Guv Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no details out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does nobody know about the employee retention credit you know what’s intriguing you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it extremely clear that if you wanted 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 chaos because keep in mind in the original cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the original 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 government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not truly he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll company 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 stayed in business because 2009 and we’ve been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big huge business customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate 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 staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
company whose service is totally or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all companies no matter size including tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end 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 salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether a company had, on average, more or less than.
100 employees in 2019.
Companies that focus on ERC filing help typically offer knowledge and assistance to help services browse the complex procedure of claiming the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Social Security
Eligibility Evaluation: These companies will evaluate your service’s eligibility for the ERC based on factors such as your market, revenue, and operations. They can help figure out if you meet the requirements for the credit and determine the maximum credit amount you can declare.
Documentation and Computation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and financial declarations, to support your claim. They will likewise assist calculate the credit amount based on qualified incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can review your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you change prior income tax return to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the needed forms and documents in your place. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed gradually. These business remain upgraded with the most recent changes and guarantee that your filings comply with the most existing guidelines. If the IRS demands extra info or carries out an audit associated to your ERC claim, they can also supply ongoing support.
It is very important to research study and vet any company offering ERC filing help to ensure their credibility and proficiency. Try to find recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax specialists who use ERC submitting assistance.
Keep in mind that while these companies can offer valuable assistance, it’s constantly a good idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate organizations to retain and pay their workers throughout 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, including for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, employers should 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 significant decrease in gross invoices. As pointed out previously, for 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices 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 amount amounts to a portion (as much as 70%) of certified wages paid to employees, including particular health plan expenses. The optimum 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 an Income Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they got a PPP loan. Nevertheless, the very same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, permitting eligible 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 amend prior-year tax returns and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, normally Kind 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the company.
It’s important to note that the ERC arrangements and eligibility criteria have progressed gradually. The very best strategy is to speak with a tax expert or check out the official internal revenue service website for the most in-depth and updated info concerning the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, a business needs to satisfy one of the following requirements:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline 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, however there are some exceptions. For instance, government entities and services that got a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes completing the necessary types and including the credit on your work tax return (normally Form 941). The exact time it requires to process the credit can differ based upon numerous factors, consisting of the intricacy of your service and the work of the internal revenue service. It’s recommended to talk to a tax expert for guidance specific to your scenario.
There are several business that can aid with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll provider. Some popular companies that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and contact these business directly to inquire about their services and costs.
Please note that the details supplied here is based upon general understanding and may not show the most recent updates or modifications to the ERC. It is essential to seek advice from a tax professional or visit the main IRS site for the most accurate and up-to-date details relating to eligibility, claiming procedures, and offered support.
Less than 100. If the company had 100 or fewer workers usually in 2019, then the credit is based.
on salaries paid to all workers whether they actually worked or not. In other words, even if the.
staff members 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.
allowed only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just cash payments however also a part of the cost of company.
provided healthcare. Employee Retention Credit Social Security
Employers can be instantly compensated for the credit by decreasing the amount of payroll taxes they.