Lets talk first about Employee Retention Credit Spam Calls :
Our group here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly provide a gorgeous breakfast and have individuals actually learn about the program we must head to the space where we have the ability to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I suggest you know 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 imply it’s just I suggest think of 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 IRS heading to the client so that’s how you have the ability to track it you know when you
receive this you understand the check is gone for sure and that’s when they pay so they don’t pay anything until they actually get the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they transfer it into their bank account and they can really trust Wonder trust that the procedure has actually been finished and how many you think you’ve processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand 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 Wonderful here you’re at my YouTube channel we’re talking about something really essential today the worker retention credit which most of you have actually never become aware of I certainly hadn’t heard of it until very just recently and discovered a lot about it because this is probably the most affordable expense of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the largest 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 supervisor and state offer me a loan it doesn’t 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’ve become yes the Ambassador and paid spokesperson for this I like 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 start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there two 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 fine go on sorry I just have to ensure we got that point I suggest that’s a huge distinction a loan versus cash 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 gorgeous tough check in the mail where you get actual money from the IRS all right so let’s speak 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 individual had to be an employee so I’m going to make the Presumption 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 actually owned a business however it’s based upon 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 qualified so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 months of 2021 on the W-2 proper so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 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 favorite part cash just how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s salary to an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus since 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 as much as 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 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 money it is now there’s a caution here the PPP money would need to be minimized from the twenty 6 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 someplace around 10 thousand dollars an individual so let’s state 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 undoubtedly now the huge concern is why does nobody learn about this because look when I initially found out about this when I initially fulfilled Josh you understand I’ve got great deals of investments in lots of business I’m a major advocate for entrepreneurship in America and make many lots of investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I do not think it because I use the PPP we went through the money center Banks to get it it was extremely 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 be true however when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation is that there’s no details 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 learn about the employee retention credit you know what’s fascinating you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 big 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 process that’s all um and here there was turmoil due to the fact that keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you might not do 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 know 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 business yeah a few of them are doing it as a payroll business your accounting professional no your accountant’s never done this before unless you have an account that entered into this organization and bottom line my firm Kevin has stayed in business because 2009 and we’ve been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our huge big corporate clients have actually worked with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Because of COVID-19 or whose gross receipts, employer whose organization is fully or partly suspended.
decrease by more than 50%.
Accessibility.
1. The credit is offered to all employers despite size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is completely or partly suspended by federal 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. When the.
company’s gross receipts exceed 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 salaries paid up to $10,000 in overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings varies by whether a company had, on average, basically than.
100 workers in 2019.
Companies that focus on ERC filing support generally supply knowledge and support to help organizations browse the intricate procedure of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Spam Calls
Eligibility Assessment: These companies will evaluate your organization’s eligibility for the ERC based on elements such as your market, revenue, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can declare, they can assist determine.
Documentation and Computation: ERC filing services will help in collecting the needed documentation, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit amount based on eligible earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to recognize possible opportunities for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the necessary forms and paperwork in your place. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have developed in time. These companies remain updated with the most recent modifications and ensure that your filings comply with the most existing standards. If the Internal revenue service demands additional details or performs an audit associated to your ERC claim, they can likewise provide continuous assistance.
It is necessary to research and veterinarian any company offering ERC filing help to guarantee their credibility and competence. Search for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax experts who provide ERC filing support.
Remember that while these business can offer important assistance, it’s constantly a great idea to have a standard understanding of the ERC requirements and process yourself. This will help you make informed choices and ensure 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 measures. The objective of the ERC is to motivate businesses to maintain and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, employers must fulfill one of two requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As pointed out previously, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease 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 amount amounts to a percentage (approximately 70%) of certified salaries paid to staff members, including specific health insurance 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: At first, businesses that received an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they received a PPP loan. The exact same incomes 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 eligible companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers an opportunity for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Type 941. The excess can be reimbursed to the employer if the credit surpasses the quantity of work taxes owed.
It is essential to note that the ERC provisions and eligibility requirements have developed in time. The best strategy is to seek advice from a tax professional or check out the main IRS website for the most current and in-depth info concerning the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, an organization needs to satisfy one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For example, federal government entities and businesses that received a PPP loan might have limitations on declaring the credit.
The procedure for declaring the ERC includes finishing the essential kinds and including the credit on your employment income tax return (generally Kind 941). The exact time it takes to process the credit can differ based upon several factors, consisting of the complexity of your company and the workload of the internal revenue service. It’s recommended to speak with a tax expert for guidance particular to your scenario.
There are numerous companies that can aid with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and get in touch with these business straight to ask about their services and costs.
Please note that the information provided here is based on general understanding and may not show the most current updates or changes to the ERC. It’s important to talk to a tax expert or visit the main internal revenue service site for the most precise and updated details relating to eligibility, declaring procedures, and readily available support.
Less than 100. If the employer had 100 or less employees usually in 2019, then the credit is based.
on earnings paid to all staff members whether they really worked or not. In other words, even if the.
staff members worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
enabled only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “wages” consists of not simply cash payments however likewise a portion of the cost of employer.
offered healthcare. Employee Retention Credit Spam Calls
Payment.
Companies can be immediately repaid for the credit by decreasing the quantity of payroll taxes they.