Lets talk first about Employee Retention Credit Worksheet 4 :
Our group here what do these men doing everybody in this space is assisting teach individuals about ERC and uh always offer a lovely breakfast and have people actually learn about the program we need to head to the room where we are able 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 numerous countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I indicate you understand if you simply begin to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I imply think about the number of real customers that went through the program yeah this is the very end this is the party 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 customer so that’s how you have the ability to track it you know when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything up until they actually receive the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their bank account and they can genuinely trust Wonder trust that the procedure has actually been finished and how many you think you have actually processed considering that 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 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 Wonderful here you’re at my YouTube channel we’re discussing something really essential today the staff member retention credit which most of you have actually never become aware of I definitely had not become aware of it until extremely just recently and learned a lot about it since this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I have actually got the specialist 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 call up your bank supervisor 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 us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations 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 difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash money payroll tax refund alright go on sorry I simply have to make sure we got that point I suggest that’s a big distinction a loan versus money cash I like money money that’s what we’re discussing okay 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 difficult check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that person 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 shareholders it’s for employees right you had to have actually owned an organization however it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 staff members 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 correct so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my preferred part cash just how much can you return per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the employee’s salary to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus because the turmoil 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 five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five 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 need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace 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 employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the huge question is why does nobody know about this because appearance when I first heard about this when I first met Josh you know I’ve got lots of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe it due to the fact that I utilize the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them sensibly to survive throughout the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even contacted us to my political leader pals Guv Senators they didn’t learn about it I imply that’s how you understand that’s how misinformation is that there’s no info out there then a lot of individuals told 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 no one learn about the employee retention credit you know what’s fascinating you’re speaking about the banks Kevin since 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 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 procedure procedure that’s all um and here there was mayhem since keep in mind 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 changed 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 any person about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it previously do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this service and bottom line my company Kevin has stayed in business considering that 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have actually dealt with bottom line to recover other federal government programs we have actually 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 government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, employer whose organization is fully or partially suspended.
decline by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. Once the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying wages differs by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that specialize in ERC filing support generally provide expertise and support to help services browse the intricate process of claiming the credit. They can use different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Worksheet 4
Eligibility Assessment: These companies will evaluate your organization’s eligibility for the ERC based on elements such as your industry, profits, and operations. If you meet the requirements for the credit and identify the optimum credit quantity you can claim, they can help determine.
Paperwork and Estimation: ERC filing services will assist in collecting the required documents, such as payroll records and monetary statements, to support your claim. They will likewise help calculate the credit quantity based upon eligible incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can examine your past payroll records and financials to identify prospective chances for retroactive credits. They can assist you modify prior income tax return to claim these refunds.
Filing Help: Companies specializing in ERC filings will prepare and send the essential forms and paperwork in your place. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have actually developed in time. These business remain updated with the most recent modifications and ensure that your filings adhere to the most present guidelines. They can likewise offer ongoing support if the internal revenue service demands additional information or conducts an audit related to your ERC claim.
It is essential to research study and veterinarian any company using ERC filing assistance to guarantee their credibility and proficiency. Try to find recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax specialists who provide ERC filing assistance.
Keep in mind that while these companies can provide valuable assistance, it’s always a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and ensure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to motivate organizations to keep and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, companies must meet one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As discussed previously, for 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline 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 is equal to a portion (approximately 70%) of qualified incomes paid to workers, including particular health insurance expenditures. 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 a Paycheck Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they got a PPP loan. The very same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, allowing eligible employers to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, usually Kind 941. The excess can be reimbursed to the company if the credit exceeds the amount of work taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility criteria have progressed in time. The very best course of action is to seek advice from a tax professional or go to the main internal revenue service website for the most current and detailed info relating to the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company needs to satisfy one of the following criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. 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 defined 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 instantly preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Government entities and companies that received a PPP loan might have limitations on declaring the credit.
The procedure for claiming the ERC includes finishing the essential kinds and consisting of the credit on your work tax return (usually Type 941). The exact time it takes to process the credit can vary based on several factors, consisting of the complexity 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 help with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some widely known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these companies directly to ask about their services and fees.
Please keep in mind that the details provided here is based on basic understanding and may not reflect the most current updates or modifications to the ERC. It’s important to seek advice from a tax expert or visit the main internal revenue service website for the most accurate and updated info regarding eligibility, declaring treatments, and readily available support.
Less than 100. If the company had 100 or less workers on average in 2019, then the credit is based.
on salaries paid to all staff members whether they in fact worked or not. To put it simply, even if the.
staff members worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 workers on average in 2019, then the credit is.
allowed only for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply money payments but also a part of the expense of employer.
offered health care. Employee Retention Credit Worksheet 4
Companies can be instantly repaid for the credit by lowering the quantity of payroll taxes they.