Lets talk first about Irc Employee Retention Credit :
Our group here what do these men doing everyone in this room is helping teach individuals about ERC and uh constantly provide a stunning breakfast and have people actually learn more about the program we need to head to the space where we are able to show a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I imply you understand if you just begin to take a look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I suggest think about how many actual 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 verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you have the ability 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 validated the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the procedure has been completed and the number of you think you have actually processed since you started this we’re about 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 experts 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly important today the worker retention credit which the majority of you have never ever become aware of I definitely hadn’t become aware of it up until extremely just recently and discovered a lot about it since this is most likely the most affordable expense 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 creator and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just call your bank manager and state provide 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 have actually become yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash cash payroll tax refund alright go on sorry I simply need to make sure we got that point I imply that’s a huge difference a loan versus money cash I like cash cash 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 original cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual cash 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 worker retention credit that person had to be a staff member so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have actually owned a business however it’s based on you having W-2 employees 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 right so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part cash just how much can you return per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be exact 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 escalated to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that take place um they just altered the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wished 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 after that what happens 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of money it is now there’s a caveat here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically 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 substantial undoubtedly now the big question is why does no one understand about this since appearance when I first heard about this when I initially met Josh you understand I have actually got great deals of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of many financial investments in business owners of which lots of suffered through the pandemic when I first became aware of this I called BS I do not believe it because I utilize 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 should have and we used them carefully to survive 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 contacted us to my political leader friends Governor Senators they didn’t learn about it I indicate that’s how you know that’s how misinformation 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 true so let’s ask Josh why does nobody understand about the employee retention credit you know what’s fascinating you’re discussing the banks Kevin because in the PPP loan process the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 procedure procedure that’s all um and here there was mayhem since remember in the initial cares act you could not do both programs so if you had done PPP you might not do ERC in the initial program and when they altered 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 anyone 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 don’t 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 prior to unless you have an account that went into this company and bottom line my firm Kevin has been in business since 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge big business customers have worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose business is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Availability.
1. The credit is readily available to all companies despite size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the comparable quarter in 2019. When the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for salaries paid after March 13th and before December 31, 2020.
The definition of certifying earnings varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Companies that focus on ERC filing assistance generally offer knowledge and assistance to assist businesses navigate the complicated procedure of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Irc Employee Retention Credit
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon elements such as your industry, profits, and operations. If you satisfy the requirements for the credit and recognize the maximum credit amount you can claim, they can assist identify.
Paperwork and Computation: ERC filing services will help in gathering the essential paperwork, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit quantity based on qualified earnings and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can review your previous payroll records and financials to determine possible chances for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the necessary forms and documents in your place. This consists of finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have evolved over time. These business remain updated with the current modifications and make sure that your filings abide by the most present standards. They can also provide ongoing assistance if the IRS requests additional details or conducts an audit related to your ERC claim.
It is essential to research and vet any company offering ERC filing assistance to ensure their credibility and know-how. Search for established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who provide ERC filing assistance.
Remember that while these business can supply valuable support, it’s always a good idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage businesses to maintain and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, consisting of for-profit services, tax-exempt organizations, and certain governmental entities. To qualify, companies should meet one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a substantial decline is defined as a 20% decline 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 receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately 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 portion (approximately 70%) of qualified incomes paid to employees, including specific health plan expenses. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they received a PPP loan. However, the exact same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, allowing eligible companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for organizations to modify prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, normally Form 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have developed in time. The very best strategy is to speak with a tax professional or check out the official internal revenue service site for the most up-to-date and comprehensive info regarding the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company must satisfy one of the following criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a significant decrease 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 defined as a 20% decrease in gross receipts 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 companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that received a PPP loan may have constraints on claiming the credit.
The procedure for declaring the ERC involves completing the necessary types 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 a number of factors, consisting of the intricacy of your business and the workload of the internal revenue service. It’s suggested to talk to a tax professional for assistance specific to your scenario.
There are numerous business that can assist with the procedure of claiming the ERC. Some well-known companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details offered here is based on general understanding and may not show the most current updates or changes to the ERC. It is very important to talk to a tax expert or visit the main IRS site for the most precise and updated info concerning eligibility, declaring treatments, and offered help.
Less than 100. If the company had 100 or fewer staff members on average in 2019, then the credit is based.
on incomes paid to all staff members whether they actually worked or not. To put it simply, even if the.
employees worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
allowed just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just cash payments however also a portion of the expense of employer.
provided health care. Irc Employee Retention Credit
Payment.
Employers can be instantly reimbursed for the credit by minimizing the quantity of payroll taxes they.