Lets talk first about Employee Retention Credits My Erc Cash :
Our group here what do these people doing everyone in this space is helping teach individuals about ERC and uh constantly provide a lovely breakfast and have people really learn about the program we need to head to the space where we are able to display a few of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I indicate you understand if you simply begin to take a 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 indicate it’s just I mean think of the number of actual 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 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 which’s when they pay so they do not pay anything up until they in fact get the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their bank account and they can truly trust Wonder trust that the process has been ended up and the number of you believe you’ve processed since 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 which’s what you need you require experts on the other end of the phone to process this and get it to where you get one of these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re discussing something really essential today the employee retention credit which the majority of you have never become aware of I definitely had not become aware of it until really recently and learned a lot about it since this is probably the lowest cost of capital for any small company 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 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 not easy this isn’t like PPP we just phone your bank manager and state give 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 like this program it’s going away very soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start 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 difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund all right go on sorry I just need to make sure we got that point I indicate that’s a big distinction a loan versus cash cash I like cash money that’s what we’re speaking about 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 lovely tough check in the mail where you get actual money from the internal revenue service all right so let’s talk about how it works since it sounds like to me if it’s a if it’s staff member retention credit that person needed to be a staff member 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 needed to have owned an organization but it’s based upon you having W-2 staff members 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 eligible 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 3 and four of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s income to an optimum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the turmoil of the pandemic so they wished 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 create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of cash it is now there’s a caveat here the PPP money would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize 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 City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the huge question is why does no one know about this because look when I initially became aware of this when I initially met Josh you know I have actually got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I don’t believe it due to the fact that 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 wisely to stay alive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my political leader pals Guv Senators they didn’t understand about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a lot of individuals informed me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s fascinating you’re speaking about the banks Kevin because in the PPP loan process 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 big banks in our country 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 chaos because keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO know how to do this not actually he or she’s never ever done it in the past do the banks do it nope the banks do not 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 prior to unless you have an account that went into this organization and bottom line my firm Kevin has actually been in business since 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 huge corporate customers have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose organization is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Schedule.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. Once the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying earnings varies by whether a company had, typically, more or less than.
100 staff members in 2019.
Companies that concentrate on ERC filing support typically provide expertise and assistance to assist businesses navigate the complex process of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credits My Erc Cash
Eligibility Assessment: These companies will assess your company’s eligibility for the ERC based on factors such as your market, earnings, and operations. If you fulfill the requirements for the credit and determine the maximum credit quantity you can claim, they can help identify.
Documents and Calculation: ERC filing services will assist in gathering the required documents, such as payroll records and financial statements, to support your claim. They will likewise help determine the credit amount based on eligible salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you amend prior tax returns to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and send the essential kinds and paperwork on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have progressed gradually. These companies stay updated with the current changes and ensure that your filings abide by the most existing guidelines. If the IRS requests additional information or conducts an audit related to your ERC claim, they can also offer ongoing support.
It is very important to research study and vet any business using ERC filing assistance to ensure their trustworthiness and knowledge. Look for established firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax professionals who use ERC submitting support.
Keep in mind that while these companies can offer important help, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure precise 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 goal of the ERC is to motivate services to keep and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit services, tax-exempt organizations, and particular governmental entities. To qualify, companies must meet one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As discussed previously, for 2021, a significant decrease is specified as a 20% decline 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 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 employer’s share of Social Security taxes. The credit quantity is equal to a portion (up to 70%) of certified wages paid to employees, including specific health plan costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they received a PPP loan. The same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, allowing qualified companies to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for businesses to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Form 941. The excess can be reimbursed to the company if the credit surpasses the amount of employment taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have actually developed with time. The best course of action is to talk to a tax expert or visit the official IRS site for the most up-to-date and detailed details concerning the ERC, including any recent legislative changes or updates.
To qualify for the ERC, a company must satisfy among 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 receipts. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For example, federal government entities and businesses that got a PPP loan might have limitations on claiming the credit.
The procedure for declaring the ERC includes completing the essential types and including the credit on your work tax return (usually Form 941). The exact time it takes to process the credit can vary based on numerous factors, consisting of the intricacy of your organization and the workload of the IRS. It’s suggested to speak with a tax professional for guidance particular to your circumstance.
There are several companies that can help with the procedure of claiming the ERC. These consist of accounting firms, 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 a good idea to research study and call these business straight to ask about their services and charges.
Please note that the info offered here is based on general knowledge and might not reflect the most recent updates or modifications to the ERC. It is very important to talk to a tax professional or check out the official internal revenue service website for the most updated and accurate information regarding eligibility, claiming treatments, and readily available assistance.
Less than 100. If the employer had 100 or fewer workers usually in 2019, then the credit is based.
on incomes paid to all staff members whether they really worked or not. Simply put, even if the.
staff members worked full-time and made 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.
permitted only for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just cash payments but also a portion of the expense of company.
provided healthcare. Employee Retention Credits My Erc Cash
Payment.
Companies can be immediately repaid for the credit by lowering the amount of payroll taxes they.