Lets talk first about Help With Employee Retention Credit :
Our group here what do these men doing everybody in this space is helping teach individuals about ERC and uh always supply a gorgeous breakfast and have people really discover the program we need to head to the space where we are able to show some of the checks that we are getting for business and I want to see that what is this this is uh numerous millions of dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I imply you know if you just begin to take a 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 indicate it’s simply I suggest consider 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 confirmed the numbers are verified 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 understand when you
receive this you know the check is gone for sure and that’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 until this letter is validated the check is on the method they deposit it into their checking account and they can genuinely rely on Wonder trust that the process has actually been ended up and the number of you believe you have actually processed given that you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing and that’s what you need 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 Terrific here you’re at my YouTube channel we’re talking about something truly crucial today the employee retention credit which the majority of you have never ever heard of I certainly hadn’t become aware of it till very recently and learned a lot about it due to the fact that this is probably the lowest cost of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 just contact your bank supervisor and say provide 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 have actually become yes the Ambassador and paid representative for this I like this program it’s going away soon you got to discover all 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 provided businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody 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 money money payroll tax refund okay go on sorry I just have to make sure we got that point I mean that’s a huge distinction a loan versus cash cash I like money cash that’s what we’re speaking 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 stunning hard check in the mail where you get real cash 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 worker retention credit that person had to be a staff member so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have owned a service 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 qualified 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 appropriate 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 2 and three of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s income to a maximum 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 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 up to five thousand Max and then what happens 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 since that’s a lot of cash it is now there’s a caution here the PPP money would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s say 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 IRS so it’s substantial clearly now the huge concern is why does no one know about this since appearance when I initially heard about this when I initially met Josh you understand I have actually got great deals of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of many investments in entrepreneurs of which lots of suffered through the pandemic when I first found out about this I called BS I do not 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 should have 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 but when I dug around I even called to my political leader good friends Guv Senators they didn’t know about it I suggest that’s how you know that’s how misinformation is that there’s no information out there then a lot of people told 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 no one know about the employee retention credit you know what’s intriguing you’re speaking about the banks Kevin since in the PPP loan process the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country and they would process procedure 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 done PPP you could refrain from doing ERC in the initial program and when they changed 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 government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never done this before unless you have an account that went into this service and bottom line my company Kevin has actually been in business because 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge huge business clients have actually dealt with bottom line to recuperate other government programs we have actually 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 federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
company whose service is totally or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Accessibility.
1. The credit is available to all employers no matter size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is fully or partly 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 comparable quarter in 2019. When the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of qualifying earnings differs by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing support normally offer competence and assistance to assist organizations browse the complex process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Help With Employee Retention Credit
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based on elements such as your market, income, and operations. If you meet the requirements for the credit and determine the maximum credit amount you can claim, they can assist determine.
Paperwork and Computation: ERC filing services will assist in gathering the essential documents, such as payroll records and financial statements, to support your claim. They will likewise help determine the credit amount based on eligible earnings and other certifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these business can examine your previous payroll records and financials to identify possible chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the necessary types and documents on your behalf. This includes finishing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have evolved in time. These companies stay updated with the latest modifications and ensure that your filings abide by the most present guidelines. If the IRS demands additional information or performs an audit associated to your ERC claim, they can likewise supply continuous assistance.
It’s important to research and vet any company using ERC filing support to ensure their credibility and knowledge. Look for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax specialists who provide ERC submitting support.
Bear in mind that while these companies can offer important support, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and ensure precise filings.
The Worker 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 motivate companies to retain and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, companies must meet one of two requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As mentioned earlier, for 2021, a significant decline is defined as a 20% decline in gross invoices 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% decline in gross receipts 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 is equal to a percentage (up to 70%) of qualified incomes paid to staff members, including particular health insurance costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they got a PPP loan. Nevertheless, the very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and enhanced, allowing eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for services to amend prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, generally Type 941. The excess can be refunded to the company if the credit surpasses the amount of employment taxes owed.
It’s important to note 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 internal revenue service website for the most current and detailed information relating to the ERC, consisting of any recent legislative modifications or updates.
To qualify for the ERC, a service must fulfill one of the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. For example, federal government entities and services that received a PPP loan may have restrictions on declaring the credit.
The process for declaring the ERC includes finishing the essential types and including the credit on your employment income tax return (typically Type 941). The exact time it takes to process the credit can vary based upon numerous factors, consisting of the complexity of your company and the workload of the IRS. It’s advised to consult with a tax expert for assistance specific to your circumstance.
There are a number of companies that can help with the process of declaring the ERC. Some popular business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info provided here is based upon basic understanding and might not reflect the most current updates or changes to the ERC. It is necessary to seek advice from a tax expert or go to the official internal revenue service website for the most precise and up-to-date information concerning eligibility, claiming treatments, and readily available assistance.
Less than 100. If the employer had 100 or fewer employees on average in 2019, then the credit is based.
on salaries paid to all workers whether they in fact worked or not. Simply put, even if the.
staff members worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 employees usually in 2019, then the credit is.
permitted only for incomes paid to workers who did not work during the calendar quarter.
In both cases, “salaries” consists of not just money payments however also a part of the cost of employer.
provided healthcare. Help With Employee Retention Credit
Payment.
Companies can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.