Lets talk first about Employee Retention Credit Supply Chain Disruption Irs :
Our team here what do these guys doing everyone in this room is assisting teach people about ERC and uh constantly supply a beautiful breakfast and have individuals really learn more about the program we need to head to the space where we have the ability to show 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 literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I suggest you know if you simply begin 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 indicate it’s just I suggest consider how many actual customers 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 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 up until they actually receive the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they transfer it into their bank account and they can really rely on Wonder trust that the procedure has been finished and how many you think you have actually processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’s what you require you need specialists 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 really important today the employee retention credit which most of you have actually never ever heard of I definitely hadn’t become aware of it up until extremely just recently and discovered a lot about it since this is most likely the lowest cost of capital for any small company anywhere
anytime if you have workers between five 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 challenging this isn’t like PPP we simply call your bank supervisor 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’ve become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing very soon you got to find out everything about it let’s talk employee 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 used businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund okay go on sorry I simply need to ensure we got that point I mean that’s a big distinction a loan versus money money I like cash cash 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 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 speak about how it works because it sounds like to me if it’s a if it’s employee retention credit that person had to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for workers right you had to have actually owned a business but it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need 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 right 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. okay so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part money how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus because the mayhem of the pandemic so they wished 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 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 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a great deal of money it is now there’s a caveat here the PPP cash would need to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average 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 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 internal revenue service so it’s huge undoubtedly now the huge concern is why does no one understand about this due to the fact that look when I initially found out about this when I first satisfied Josh you understand I’ve got great deals of investments in lots of companies I’m a major supporter for entrepreneurship in America and make many many financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially found out about this I called BS I don’t think it because I use the PPP we went through the money 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 should have and we used them wisely to survive throughout the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my politician friends Guv Senators they didn’t understand about it I imply that’s how you know that’s how false information is that there’s no information out there then a bunch of individuals informed 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 employee retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that 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 country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was chaos because remember in the initial cares act you could not do both programs so if you had done PPP you could 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 any person about how to.
do this does your CFO know how to do this not really she or he’s never done it previously 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 accountant no your accountant’s never done this before unless you have an account that entered into this service and bottom line my firm Kevin has been in business because 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our big huge business clients have dealt with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose service is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all employers regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is fully or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of certifying incomes varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing support normally offer competence and assistance to assist organizations navigate the complex process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Supply Chain Disruption Irs
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based on factors such as your market, income, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can declare, they can assist figure out.
Paperwork and Calculation: ERC filing services will assist in collecting the required documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit amount based upon eligible incomes and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can examine your past payroll records and financials to identify potential chances for retroactive credits. They can assist you change previous income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the required kinds and documents in your place. This includes finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually developed in time. These companies stay updated with the latest modifications and make sure that your filings abide by the most current standards. They can likewise provide ongoing support if the IRS requests additional details or carries out an audit related to your ERC claim.
It’s important to research study and vet any business providing ERC filing help to guarantee their trustworthiness and know-how. Look for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who provide ERC filing assistance.
Bear in mind that while these business can provide important support, it’s always a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate services to keep and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To certify, employers need to satisfy one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As mentioned 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 substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of qualified wages paid to staff members, including specific health plan expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, allowing qualified companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for services to change prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, normally Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the company.
It is very important to note that the ERC arrangements and eligibility criteria have actually progressed with time. The best strategy is to consult with a tax professional or go to the main IRS site for the most updated and in-depth details regarding the ERC, including any recent legal modifications or updates.
To get approved for the ERC, a business should fulfill among the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and businesses that got a PPP loan might have limitations on declaring the credit.
The procedure for declaring the ERC involves completing the required kinds and including the credit on your employment income tax return (usually Form 941). The exact time it takes to process the credit can vary based on a number of elements, including the intricacy of your company and the workload of the internal revenue service. It’s recommended to consult with a tax expert for assistance particular to your scenario.
There are numerous business that can aid with the procedure of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some popular business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these companies directly to inquire about their charges and services.
Please keep in mind that the information offered here is based upon basic knowledge and might not show the most recent updates or changes to the ERC. It is necessary to consult with a tax expert or visit the main IRS website for the most precise and current info regarding eligibility, declaring procedures, and offered help.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on incomes paid to all employees whether they in fact worked or not. In other words, even if the.
workers worked full time and made money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees on average in 2019, then the credit is.
enabled only for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” includes not just money payments however likewise a portion of the expense of employer.
provided health care. Employee Retention Credit Supply Chain Disruption Irs
Employers can be right away reimbursed for the credit by reducing the amount of payroll taxes they.