Lets talk first about Has Anyone Received The Employee Retention Credit :
Our group here what do these men doing everybody in this room is helping teach individuals about ERC and uh always provide a lovely breakfast and have people truly discover the program we need to head to the room where we have the ability to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I suggest you know if you simply 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 just I indicate consider the number of real clients 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 validated 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
receive this you understand the check is opted for sure and that’s when they pay so they don’t pay anything till they actually 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 genuinely trust Wonder trust that the procedure has actually been completed and the number of you believe you have actually processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’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 Fantastic here you’re at my YouTube channel we’re talking about something really important today the staff member retention credit which most of you have actually never ever become aware of I certainly hadn’t become aware of it till very just recently and learned a lot about it since this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call your bank manager and say offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very soon you got to find out everything 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 developed the cares Act and the cares act used services 3 opportunities 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund okay go on sorry I just have to make sure we got that point I imply that’s a huge difference a loan versus cash money I like cash money that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works because it seems like to me if it’s a if it’s staff member retention credit that person needed to be a worker so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you had to have actually owned a company however it’s based upon you having W-2 workers in America not 10.99. 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 have to be on payroll for the first six months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part money just how much can you return per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the employee’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that occur um they simply altered 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 then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 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 have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge obviously now the huge question is why does no one understand about this due to the fact that appearance when I initially heard about this when I first met Josh you know I’ve got great deals of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which lots of suffered through the pandemic when I first became aware of this I called BS I don’t believe it because 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 sensibly to survive throughout the pandemic so when I found out about 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 understand about it I indicate that’s how you understand that’s how misinformation is that there’s no info out there then a lot of people informed me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s interesting you’re talking about the banks Kevin since 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 huge 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 simply procedure procedure that’s all um and here there was chaos since remember in the initial cares act you could refrain from doing both programs so if you had actually 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 due to the fact that it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person 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 company your accountant no your accountant’s never done this before unless you have an account that entered into this organization and bottom line my company Kevin has been in business considering that 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big huge business clients have worked with bottom line to recover other government programs we have actually 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 created to encourage.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose company is totally or partially suspended.
decline by more than 50%.
Availability.
1. The credit is readily available to all companies despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It is effective for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying earnings differs by whether an employer had, usually, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing support typically provide competence and support to assist organizations navigate the complex process of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Has Anyone Received The Employee Retention Credit
Eligibility Evaluation: These business will evaluate your company’s eligibility for the ERC based on factors such as your market, profits, and operations. If you meet the requirements for the credit and determine the maximum credit quantity you can declare, they can help determine.
Documentation and Calculation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit quantity based on qualified incomes and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can examine your previous payroll records and financials to identify prospective opportunities for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the necessary kinds and documentation in your place. This consists of completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have actually developed over time. These companies remain upgraded with the current modifications and make sure that your filings comply with the most present standards. They can also provide continuous support if the IRS requests extra info or performs an audit related to your ERC claim.
It is necessary to research and vet any business using ERC filing assistance to guarantee their credibility and know-how. Look for recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who provide ERC filing assistance.
Bear in mind that while these companies can offer important support, it’s always a good concept to have a basic 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 introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to encourage organizations to retain 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 eligible companies, including for-profit businesses, tax-exempt companies, and certain governmental entities. To qualify, employers should fulfill one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As mentioned previously, for 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease 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 right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of qualified salaries paid to staff members, consisting of 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, services that got an Income Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they received a PPP loan. The exact same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing eligible employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, usually Type 941. The excess can be reimbursed to the company if the credit surpasses the quantity of work taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have actually progressed with time. The very best strategy is to seek advice from a tax expert or visit the official internal revenue service website for the most comprehensive and current information concerning the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a company must fulfill one of the following criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. Federal government entities and organizations that got a PPP loan might have constraints on declaring the credit.
The process for claiming the ERC involves finishing the necessary types and consisting of the credit on your employment income tax return (usually Form 941). The exact time it requires to process the credit can differ based upon a number of elements, consisting of the intricacy of your business and the workload of the IRS. It’s advised to consult with a tax professional for assistance specific to your situation.
There are several companies that can assist with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll company. Some popular business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these business straight to ask about their services and fees.
Please keep in mind that the information provided here is based on general understanding and might not reflect the most current updates or changes to the ERC. It is very important to seek advice from a tax professional or visit the official internal revenue service website for the most up-to-date and precise information concerning eligibility, declaring treatments, and offered assistance.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on salaries paid to all workers whether they really worked or not. Simply put, even if the.
employees worked full-time and earned money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
permitted just for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” includes not simply money payments but likewise a portion of the cost of company.
offered health care. Has Anyone Received The Employee Retention Credit
Payment.
Companies can be instantly repaid for the credit by minimizing the amount of payroll taxes they.