Lets talk first about Irs Employee Retention Credit Contact Number :
Our group here what do these men doing everyone in this space is helping teach people about ERC and uh always supply a gorgeous breakfast and have people really learn more about the program we need to head to the space where we are able to display 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 millions of dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I mean you know if you just begin to take a look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I imply consider how many 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 internal revenue service heading to the customer so that’s how you’re able to track it you know when you
receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything until they actually get the cash 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 bank account and they can truly rely on Wonder trust that the process has actually been finished and the number of you think you’ve processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing and that’s what you need you need specialists 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 Terrific here you’re at my YouTube channel we’re discussing something actually crucial today the staff member retention credit which most of you have actually never ever become aware of I certainly had not become aware of it until extremely recently and discovered a lot about it due to the fact that this is most likely the lowest cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 call your bank manager and state give 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 have actually ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away very 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 throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided organizations 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 distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I just have to ensure we got that point I imply that’s a big distinction a loan versus cash cash I like money cash that’s what we’re talking 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 lovely difficult check in the mail where you get real money from the internal revenue service all right so let’s talk about how it works because it seems like to me if it’s a if it’s worker retention credit that individual needed to be an employee so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you had to have actually owned an organization but it’s based upon 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 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 6 months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my favorite part cash how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to a maximum of seven thousand per quarter how did that happen um they just changed the rules in.
2021 versus because the turmoil of the pandemic so they wished to even get more to keep those employees 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 create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caveat here the PPP money would have to be minimized from the twenty six 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 money someplace around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the huge question is why does nobody learn about this since look when I initially heard about this when I initially satisfied Josh you know I’ve got lots of investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I don’t 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 which were well been worthy of and we utilized them sensibly to stay alive throughout the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even called to my political leader friends Guv Senators they didn’t know about it I suggest that’s how you understand that’s how misinformation is that there’s no information out there then a lot of individuals informed me well you can’t get it since 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 since 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 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 procedure procedure that’s all um and here there was turmoil due to the fact that remember in the initial cares act you could not do both programs so if you had actually 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 since 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 truly she or he’s never ever done it in the past 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 accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this business and bottom line my firm Kevin has 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 big corporate customers have actually worked with bottom line to recuperate other 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 developed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
employer whose business is totally or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Accessibility.
1. The credit is readily available to all companies despite size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the employer needs to fulfill 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.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Business that concentrate on ERC filing support usually offer proficiency and support to help companies navigate the intricate procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Irs Employee Retention Credit Contact Number
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based on aspects such as your market, revenue, and operations. They can help figure out if you satisfy the requirements for the credit and recognize the optimum credit amount you can claim.
Documentation and Calculation: ERC filing services will help in gathering the needed documentation, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit amount based upon eligible incomes and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can evaluate your past payroll records and financials to recognize potential opportunities for retroactive credits. They can help you modify previous income tax return to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the needed forms and documents on your behalf. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have developed gradually. These business stay updated with the latest changes and guarantee that your filings comply with the most current guidelines. They can also provide continuous support if the IRS requests additional details or conducts an audit related to your ERC claim.
It’s important to research study and veterinarian any business offering ERC filing help to ensure their credibility and competence. Look for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who use ERC filing assistance.
Remember that while these companies can supply important support, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage services to maintain and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers must meet one of two criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As pointed out earlier, for 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined 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.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a portion (up to 70%) of certified salaries paid to workers, including certain health plan expenses. 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, services that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they received a PPP loan. Nevertheless, the same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting qualified employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to modify prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Kind 941. The excess can be refunded to the company if the credit surpasses the quantity of employment taxes owed.
It is essential to note that the ERC provisions and eligibility criteria have actually developed gradually. The best course of action is to talk to a tax professional or go to the main internal revenue service site for the most in-depth and updated details relating to the ERC, consisting of any current legal changes or updates.
To get approved for the ERC, an organization should meet one of the following requirements:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified 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.
The ERC is offered to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that received a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC includes finishing the essential kinds and including the credit on your work tax return (typically Type 941). The exact time it requires to process the credit can differ based on a number of factors, including the complexity of your service and the workload of the IRS. It’s advised to talk to a tax expert for assistance particular to your circumstance.
There are numerous companies that can assist with the process of claiming the ERC. Some widely known companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based upon general understanding and may not reflect the most current updates or changes to the ERC. It is essential to speak with a tax professional or go to the main internal revenue service site for the most precise and current details relating to eligibility, claiming procedures, and readily available help.
Less than 100. If the company had 100 or less workers typically in 2019, then the credit is based.
on incomes paid to all employees whether they actually worked or not. Simply put, 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 employees on average in 2019.
allowed just for salaries paid to workers who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments but likewise a part of the cost of employer.
provided healthcare. Irs Employee Retention Credit Contact Number
Payment.
Companies can be immediately compensated for the credit by minimizing the quantity of payroll taxes they.