Lets talk first about Free Employee Retention Credit Filing :
Our group here what do these guys doing everyone in this room is helping teach individuals about ERC and uh always offer a stunning breakfast and have people actually discover the program we should head to the room where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I imply you understand if you simply start to look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I suggest 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 confirmed the numbers are validated and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able 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 actually get the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they deposit it into their checking account and they can genuinely trust Wonder trust that the process has been finished and how many you believe you have actually processed because you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you require 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 worker retention credit which the majority of you have never ever become aware of I certainly hadn’t become aware of it up until very just recently and discovered a lot about it because 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 founder and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply contact your bank manager and say 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’ve ended up being yes the Ambassador and paid representative for this I like this program it’s going away soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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 cash cash payroll tax refund alright go on sorry I simply have to make sure we got that point I indicate that’s a huge distinction a loan versus money money I like money 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 lovely tough check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works since it sounds like to me if it’s a if it’s worker retention credit that individual had to be an employee so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for staff members right you had to have actually owned a business but it’s based upon 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 first six months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my favorite part money 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 exact Kevin is 50 of the worker’s salary to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wanted to even get more to keep those employees 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 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 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a lot of money it is now there’s a caution here the PPP cash would need to be reduced 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 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 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 big obviously now the huge question is why does nobody know about this because look when I first found out about this when I initially fulfilled Josh you understand I have actually got lots of investments in lots of business I’m a major supporter for entrepreneurship in America and make many many investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I do not think it since I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well should have and we used them carefully to survive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my politician good friends Guv Senators they didn’t know about it I suggest that’s how you understand that’s how false information is that there’s no information out there then a bunch of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody understand about the worker retention credit you know what’s fascinating you’re discussing the banks Kevin because in the PPP loan process 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was chaos due to the fact that remember in the initial cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they changed 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 anybody about how to.
do this does your CFO understand how to do this not actually she or he’s never done it in the past 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 accounting professional no your accountant’s never done this prior to unless you have an account that entered into this business and bottom line my company Kevin has actually been in business because 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 customers have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, employer whose organization is completely or partially suspended.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of an equivalent 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 certifying wages paid up to $10,000 in total.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying wages varies by whether a company had, on average, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing assistance generally provide knowledge and support to assist businesses navigate the complex procedure of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Free Employee Retention Credit Filing
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based upon aspects such as your market, revenue, and operations. They can assist determine if you meet the requirements for the credit and identify the optimum credit amount you can declare.
Documentation and Estimation: ERC filing services will help in gathering the essential documents, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based on qualified salaries and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can help you change previous tax returns to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the essential kinds and documents in your place. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually developed in time. These companies remain upgraded with the latest modifications and guarantee that your filings comply with the most existing guidelines. They can likewise offer continuous assistance if the internal revenue service requests extra details or conducts an audit related to your ERC claim.
It is necessary to research study and vet any company using ERC filing help to ensure their credibility and competence. Search for established firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax professionals who offer ERC submitting support.
Keep in mind that while these business can provide important support, it’s constantly a great concept to have a standard understanding of the ERC requirements and process yourself. This will help you make notified decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to encourage companies to keep and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, employers must fulfill one of two criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As pointed out previously, for 2021, a significant decrease is defined 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% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (as much as 70%) of certified incomes paid to staff members, consisting of particular health insurance expenses. 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: Initially, companies that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. The very same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, permitting eligible employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides a chance for services to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work tax returns, generally Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the company.
It is necessary to keep in mind that the ERC arrangements and eligibility criteria have actually developed over time. The best course of action is to talk to a tax professional or check out the official IRS website for the most comprehensive and current information regarding the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a company must satisfy one of the following criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline 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 considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and businesses that got a PPP loan might have constraints on claiming the credit.
The process for declaring the ERC includes completing the required types and consisting of the credit on your work tax return (normally Kind 941). The exact time it requires to process the credit can vary based upon numerous elements, consisting of the complexity of your business and the work of the internal revenue service. It’s suggested to speak with a tax professional for assistance specific to your scenario.
There are several companies that can assist with the procedure of claiming the ERC. Some widely known companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based upon general understanding and might not reflect the most current updates or modifications to the ERC. It is very important to speak with a tax professional or check out the main internal revenue service site for the most current and precise info relating to eligibility, declaring treatments, and available assistance.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on incomes paid to all workers whether they in fact worked or not. To put it simply, even if the.
employees 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 employees typically in 2019, then the credit is.
allowed just for earnings paid to employees who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just cash payments however likewise a portion of the cost of employer.
provided healthcare. Free Employee Retention Credit Filing
Companies can be immediately compensated for the credit by reducing the amount of payroll taxes they.