Lets talk first about Illinois Employee Retention Credit :
Our group here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly offer a gorgeous breakfast and have individuals truly discover the program we ought to head to the room where we are able to display a few of the checks that we are getting for business and I wish to see that what is this this is uh numerous countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I indicate you know if you simply start to 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 mean it’s just I imply think of the number of actual 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 confirmed 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 understand when you
get this you know the check is opted for sure and that’s when they pay so they do not pay anything up until they really receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they deposit it into their checking account and they can genuinely rely on Wonder trust that the process has been finished and the number of you think you have actually processed given that you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you need you need professionals 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 truly essential today the employee retention credit which most of you have never heard of I certainly hadn’t heard of it up until extremely just recently and discovered a lot about it since this is probably the most affordable cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just contact your bank supervisor and say give 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 become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to find out everything about it let’s talk employee 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 three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone 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.
fix the cash money payroll tax refund fine go on sorry I just have to make sure we got that point I mean that’s a big distinction a loan versus cash cash I like money cash 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 stunning difficult check in the mail where you get actual money from the internal revenue service all right so let’s talk about how it works since it seems 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 people on the cap table not for investors it’s for employees 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 employees 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 very first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part cash how much can you get back per employee that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus because 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 approximately five 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 employee that is because that’s a lot of cash it is now there’s a caution here the PPP money would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment 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 IRS so it’s huge clearly now the huge concern is why does nobody know about this due to the fact that look when I first found out about this when I first fulfilled Josh you understand I’ve got lots of investments in lots of business I’m a significant advocate for entrepreneurship in America and make lots of numerous investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not believe it due to the fact that I use the PPP we went through the money center Banks to get it it was really 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 stay alive throughout the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even called to my politician good friends Governor Senators they didn’t learn about it I mean that’s how you understand that’s how false information is that there’s no details out there then a bunch of individuals informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one understand about the worker retention credit you understand what’s fascinating you’re talking about the banks Kevin because in the PPP loan procedure 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was chaos due to the fact that keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the original program and when they altered the law in 2021 the banks were not doing ERC since 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 understand 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 companies yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this company and bottom line my firm Kevin has stayed in business given that 2009 and we have actually been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge huge business customers have worked with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
company whose service 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 companies no matter size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To certify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is totally or partially 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.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The meaning of qualifying wages differs by whether an employer had, on average, basically than.
100 employees in 2019.
Business that specialize in ERC filing help normally provide knowledge and support to help services browse the intricate procedure of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Illinois Employee Retention Credit
Eligibility Evaluation: These business will examine your service’s eligibility for the ERC based on factors such as your industry, income, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can declare, they can help figure out.
Documents and Calculation: ERC filing services will assist in gathering the required documentation, such as payroll records and monetary statements, to support your claim. They will likewise help calculate the credit amount based upon qualified earnings and other qualifying expenditures.
Retroactive Claim Evaluation: 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 Support: Business focusing on ERC filings will prepare and send the essential forms and paperwork in your place. This consists of finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have progressed gradually. These companies stay upgraded with the latest changes and ensure that your filings abide by the most present guidelines. If the Internal revenue service demands additional details or conducts an audit associated to your ERC claim, they can also supply ongoing assistance.
It is very important to research and vet any company providing ERC filing help to guarantee their reliability and proficiency. Try to find recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who use ERC filing assistance.
Bear in mind that while these business can supply valuable assistance, it’s always a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure accurate filings.
The Employee 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 encourage companies to maintain and pay their staff members during 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 eligible employers, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, companies must meet one of two criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross receipts compared to the very 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 quantity is equal to a portion (up to 70%) of certified incomes paid to staff members, consisting of certain health insurance costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. However, the very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, allowing eligible employers to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for services to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, usually Form 941. If the credit exceeds the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have actually evolved with time. The best strategy is to consult with a tax expert or go to the main internal revenue service website for the most current and in-depth info regarding the ERC, consisting of any recent legal changes or updates.
To get approved 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 considerable decrease in gross invoices. For 2021, a significant decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have limitations on claiming the credit.
The process for claiming the ERC involves completing the essential kinds and including the credit on your work income tax return (normally Type 941). The exact time it requires to process the credit can differ based on numerous elements, consisting of the intricacy of your business and the work of the IRS. It’s advised to seek advice from a tax expert for guidance particular to your situation.
There are numerous business that can assist with the process of claiming the ERC. Some widely known companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based upon basic knowledge and may not show the most recent updates or modifications to the ERC. It is necessary to talk to a tax professional or visit the official IRS website for the most up-to-date and accurate info relating to eligibility, declaring procedures, and readily available help.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on earnings paid to all employees whether they in fact worked or not. In other words, even if the.
staff members worked full-time and earned 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.
allowed only for incomes paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not just money payments however also a part of the cost of company.
offered healthcare. Illinois Employee Retention Credit
Companies can be right away reimbursed for the credit by minimizing the amount of payroll taxes they.