Lets talk first about Erc Employee Retention Credit 2021 :
Our team here what do these people doing everyone in this room is assisting teach people about ERC and uh always provide a beautiful breakfast and have individuals actually learn about the program we must head to the room where we are able to display some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I mean you know if you just start to take a 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 simply I indicate think of the number of real 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 validated and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you have the ability to track it you know 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 really receive the money they don’t pay bottom line Wonder trust anything until this letter is confirmed 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 actually been ended up and how many you believe you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing which’s what you require you require specialists 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 crucial today the staff member retention credit which the majority of you have never ever become aware of I definitely hadn’t become aware of it till very recently and discovered a lot about it because this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have workers in 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 contact your bank manager and state give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so throughout 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 nearly everyone 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.
fix the money cash payroll tax refund okay go on sorry I just need to ensure we got that point I imply that’s a big distinction a loan versus money cash I like money cash that’s what we’re speaking about alright 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 hard check in the mail where you get real cash from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s staff member retention credit that person had 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 investors it’s for staff members right you needed to have actually owned a service but it’s based on you having W-2 employees in America not 10.99. so 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 need to be on payroll for the first six months of 2021 on the W-2 appropriate 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. fine so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per worker that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the chaos 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 five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a lot of cash it is now there’s a caution here the PPP cash would have to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New York 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 undoubtedly now the big question is why does nobody learn about this due to the fact that appearance when I first heard about this when I first met Josh you know I have actually got great deals of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make many numerous investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I do not believe it since I utilize 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 which were well been worthy of and we utilized them sensibly to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true however when I dug around I even called to my political leader friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of people informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one know about the worker retention credit you know what’s intriguing you’re discussing the banks Kevin because 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 procedure 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 since keep in mind in the initial cares act you could not do both programs so if you had actually 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 ever made it clear to any person about how to.
do this does your CFO know how to do this not truly he or she’s never done it previously 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 business your accounting professional no your accountant’s never done this before unless you have an account that entered into this company and bottom line my company Kevin has been in business since 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients have actually worked with bottom line to recover other federal government programs we’ve 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 government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
employer whose company is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. When the.
employer’s gross receipts exceed 80% of a comparable 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 certifying wages paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying earnings differs by whether an employer had, typically, more or less than.
100 employees in 2019.
Business that specialize in ERC filing assistance generally provide knowledge and support to assist organizations browse the complex process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Erc Employee Retention Credit 2021
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based on factors such as your industry, income, and operations. They can help identify if you meet the requirements for the credit and recognize the maximum credit amount you can declare.
Documents and Estimation: ERC filing services will assist in gathering the needed documentation, such as payroll records and financial declarations, to support your claim. They will likewise help compute the credit amount based upon qualified salaries and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can examine your past payroll records and financials to identify potential opportunities for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the essential types and paperwork on your behalf. This includes completing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have progressed over time. These companies stay updated with the current modifications and guarantee that your filings comply with the most existing standards. If the IRS requests extra details or performs an audit related to your ERC claim, they can also provide ongoing assistance.
It is very important to research and vet any company offering ERC filing help to guarantee their credibility and know-how. Look for recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who offer ERC submitting assistance.
Keep in mind that while these companies can offer valuable help, it’s always a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to motivate businesses to keep and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, employers need to fulfill one of two criteria:.
Business operations were fully or partly 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 substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross receipts 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 quantity is equal to a portion (up to 70%) of qualified wages paid to workers, consisting of specific health plan expenditures. The optimum credit per staff member 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 Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they got a PPP loan. However, the very same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, allowing eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers an opportunity for businesses to change prior-year income tax return and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be refunded to the company if the credit goes beyond the amount of work taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually developed in time. The very best course of action is to speak with a tax expert or check out the official IRS website for the most in-depth and up-to-date info relating to the ERC, including any current legislative changes or updates.
To qualify for the ERC, a company should satisfy one of the following requirements:.
The business operations were completely 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 decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, government entities and businesses that got a PPP loan might have restrictions on claiming the credit.
The process for declaring the ERC involves completing the required types and consisting of the credit on your work tax return (typically Kind 941). The exact time it requires to process the credit can differ based on a number of elements, including the intricacy of your company and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for guidance particular to your circumstance.
There are a number of business that can assist with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some well-known companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these companies directly to ask about their services and fees.
Please keep in mind that the info provided here is based on basic knowledge and may not reflect the most recent updates or changes to the ERC. It is very important to consult with a tax expert or visit the official IRS website for the most accurate and current information concerning eligibility, declaring procedures, and readily available assistance.
Less than 100. If the company had 100 or less staff members usually in 2019, then the credit is based.
on earnings paid to all staff members whether they in fact worked or not. To put it simply, even if the.
employees worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 staff members on average in 2019, then the credit is.
permitted only for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” includes not just money payments however also a part of the cost of company.
provided healthcare. Erc Employee Retention Credit 2021
Companies can be right away compensated for the credit by reducing the amount of payroll taxes they.