Lets talk first about Innovation Refunds Cost :
Our group here what do these people doing everybody in this room is helping teach individuals about ERC and uh always supply a lovely breakfast and have people truly learn more 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 want to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the method I imply you understand if you just begin 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 mean it’s simply I mean think of how many real 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 validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you understand when you
receive this you know the check is chosen sure which’s when they pay so they don’t pay anything until they actually get the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they transfer it into their checking account and they can really rely on Wonder trust that the procedure has actually been completed and how many you think you have actually processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you need you require 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 Wonderful 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 never ever heard of I definitely hadn’t heard of it up until very recently and learned a lot about it due to the fact that this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have staff members 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 challenging this isn’t like PPP we just call your bank supervisor and state provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash money payroll tax refund fine go on sorry I just have to make sure we got that point I suggest that’s a huge difference a loan versus cash cash I like money money that’s what we’re talking about fine 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 difficult check in the mail where you get real 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 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 staff members right you had to have actually owned a business however it’s based on you having W-2 workers 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 6 months of 2021 on the W-2 appropriate so there were six 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. alright so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part cash 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 specific Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s salary to a maximum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus because the chaos of the pandemic so they wanted to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a great deal of money it is now there’s a caveat here the PPP money would have 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 usually Kevin is if you took PPP cash someplace around 10 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 workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s big certainly now the big question is why does no one know about this because appearance when I initially became aware of this when I first satisfied Josh you understand I’ve got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous many investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I do not believe it because 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 and that were well been worthy of and we used them wisely to stay alive during the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my politician friends Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how misinformation is that there’s no details out there then a bunch of individuals 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 understand about the staff member retention credit you know what’s intriguing you’re discussing the banks Kevin because in the PPP loan procedure 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 big banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was mayhem because remember in the original cares act you could refrain from doing both programs so if you had done PPP you could not do 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 federal government never made it clear to any person about how to.
do this does your CFO understand how to do this not truly she or he’s never ever done it before 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 company and bottom line my company Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have actually worked with bottom line to recover other federal government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings 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 offered to all companies regardless of size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether an employer had, on average, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing help usually supply know-how and support to help organizations navigate the complicated process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Innovation Refunds Cost
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. They can assist determine if you fulfill the requirements for the credit and determine the optimum credit amount you can claim.
Paperwork and Estimation: ERC filing services will assist in collecting the needed documentation, such as payroll records and financial statements, to support your claim. They will also assist compute the credit quantity based upon eligible earnings and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the required types and documents on your behalf. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have actually evolved over time. These business stay upgraded with the most recent changes and ensure that your filings abide by the most present standards. If the Internal revenue service requests extra info or conducts an audit associated to your ERC claim, they can likewise provide continuous support.
It is necessary to research study and vet any company providing ERC filing help to guarantee their trustworthiness and competence. Try to find established companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who provide ERC submitting support.
Bear in mind that while these companies can provide valuable help, it’s always an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed choices and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to encourage services to keep and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, employers need to satisfy one of two requirements:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As pointed out earlier, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts 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 quantity amounts to a portion (as much as 70%) of certified wages paid to workers, including particular health plan expenses. 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, businesses that got an Income Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they received a PPP loan. The exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, permitting qualified employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, typically Form 941. The excess can be reimbursed to the company if the credit exceeds the quantity of employment taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have actually progressed gradually. The best strategy is to speak with a tax expert or visit the main IRS site for the most current and comprehensive details relating to the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a company should satisfy one of the following requirements:.
The business operations were fully 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 decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline 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 offered to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and organizations that got a PPP loan might have constraints on declaring the credit.
The procedure for claiming the ERC involves completing the required types and consisting of the credit on your employment income tax return (generally Kind 941). The exact time it takes to process the credit can differ based upon several factors, including the intricacy of your organization and the workload of the internal revenue service. It’s advised to talk to a tax expert for guidance particular to your situation.
There are numerous business that can help with the procedure of claiming the ERC. Some popular business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information provided here is based upon basic knowledge and might not reflect the most recent updates or changes to the ERC. It is very important to consult with a tax expert or check out the official internal revenue service site for the most up-to-date and accurate info relating to eligibility, claiming procedures, and readily available help.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on incomes paid to all employees whether they really worked or not. To put it simply, even if the.
workers 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 staff members on average in 2019.
permitted just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” includes not simply cash payments however likewise a portion of the cost of company.
supplied health care. Innovation Refunds Cost
Companies can be right away repaid for the credit by decreasing the quantity of payroll taxes they.