Lets talk first about How Do You Get The Employee Retention Credit :
Our group here what do these men doing everyone in this space is helping teach people about ERC and uh always offer a lovely breakfast and have individuals actually find out about the program we must head to the space where we have the ability to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I suggest you know 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 indicate it’s simply I imply think about the number of actual clients that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
get this you know the check is chosen sure and that’s when they pay so they don’t pay anything until they in fact get the money they do not 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 really trust Wonder trust that the process has been ended up and how many you think you’ve processed given that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you need you require experts 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 speaking about something really crucial today the worker retention credit which the majority of you have never ever become aware of I definitely had not become aware of it till really recently and found out 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 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 Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply phone your bank manager and say offer me a loan it does not 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 representative for this I love this program it’s disappearing very 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 throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered organizations 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 difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money money payroll tax refund all right go on sorry I just need to make sure we got that point I imply that’s a big difference a loan versus cash cash 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 initial cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get actual cash from the IRS all right so let’s discuss how it works since it sounds like to me if it’s a if it’s staff member retention credit that individual had to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you had to have owned a business but it’s based on you having W-2 staff members 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 need to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 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 duration now let’s talk my favorite part money how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’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 staff member’s wage to a maximum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus due to the fact that the mayhem 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 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city 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 huge undoubtedly now the big concern is why does nobody understand about this since appearance when I first became aware of this when I first satisfied Josh you understand I have actually got lots of financial investments in lots of companies I’m a major 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 became aware of this I called BS I don’t believe it since I use the PPP we went through the cash 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 carefully to survive during the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even contacted us to my politician buddies Governor Senators they didn’t know about it I mean that’s how you understand that’s how false information is that there’s no info out there then a bunch of people told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one know about the employee retention credit you understand what’s fascinating you’re speaking about the banks Kevin due to the fact that 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 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 process that’s all um and here there was chaos due to the fact that remember in the original cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial 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 federal government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this business and bottom line my company Kevin has stayed in business since 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 lot of our big huge corporate customers have actually dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose business is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all employers no matter size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is totally or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages varies by whether a company had, on average, more or less than.
100 workers in 2019.
Companies that focus on ERC filing assistance typically supply know-how and support to assist companies browse the complicated procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? How Do You Get The Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based on aspects such as your industry, earnings, and operations. They can assist figure out if you fulfill the requirements for the credit and recognize the optimum credit quantity you can claim.
Documentation and Calculation: ERC filing services will help in gathering the essential documentation, such as payroll records and monetary declarations, to support your claim. They will also assist calculate the credit quantity based on qualified salaries and other qualifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify potential chances for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the essential types and documents in your place. This consists of completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have actually progressed gradually. These companies remain updated with the most recent changes and make sure that your filings abide by the most existing guidelines. If the Internal revenue service requests additional details or performs an audit associated to your ERC claim, they can likewise offer ongoing assistance.
It is essential to research and vet any business offering ERC filing help to guarantee their reliability and competence. Try to find established companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax professionals who use ERC filing assistance.
Remember that while these companies can offer important support, it’s constantly a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified choices and guarantee 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 procedures. The objective of the ERC is to motivate organizations to retain and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers need to satisfy one of two requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As discussed previously, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of certified wages paid to staff members, including particular health insurance 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: Initially, businesses that received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. However, the exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, permitting eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to change prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work tax returns, usually Kind 941. The excess can be reimbursed to the employer if the credit surpasses the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility requirements have progressed over time. The best strategy is to seek advice from a tax expert or check out the main internal revenue service website for the most comprehensive and updated details concerning the ERC, consisting of any recent legislative modifications or updates.
To receive the ERC, a service must meet among the following requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant 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 right away preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, federal government entities and businesses that got a PPP loan might have restrictions on claiming the credit.
The process for declaring the ERC involves finishing the required forms and consisting of the credit on your work income tax return (generally Type 941). The exact time it requires to process the credit can differ based on numerous factors, including the complexity of your business and the workload of the internal revenue service. It’s recommended to consult with a tax professional for assistance specific to your scenario.
There are numerous companies that can assist with the procedure of claiming the ERC. Some well-known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based upon general understanding and may not show the most recent updates or changes to the ERC. It’s important to consult with a tax expert or visit the official IRS website for the most precise and up-to-date information regarding eligibility, claiming treatments, and offered help.
Less than 100. The credit is based if the company had 100 or less staff members on average in 2019.
on salaries paid to all staff members whether they really worked or not. To put it simply, even if the.
staff members worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just cash payments however likewise a part of the expense of company.
provided healthcare. How Do You Get The Employee Retention Credit
Companies can be immediately repaid for the credit by decreasing the amount of payroll taxes they.