Lets talk first about Is Employee Retention Credit A Scam :
Our team here what do these men doing everybody in this space is helping teach people about ERC and uh always supply a stunning breakfast and have individuals really find out about the program we ought to head to the room where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the method I imply you understand if you just start 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 imply it’s just 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
get this you know the check is chosen sure which’s when they pay so they don’t pay anything up until they actually get the money they don’t 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 rely on Wonder trust that the procedure has actually been ended up and the number of you think you have actually processed given that you started this we have to do with 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 specialists 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 Fantastic here you’re at my YouTube channel we’re talking about something truly important today the employee retention credit which the majority of you have actually never heard of I certainly had not become aware of it till extremely just 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 between 5 and five hundred so I have actually got the professional 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 challenging this isn’t like PPP we simply phone your bank manager and say offer 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 become yes the Ambassador and paid representative for this I love this program it’s going away soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody 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.
correct the cash money payroll tax refund all right go on sorry I just have to make certain we got that point I indicate that’s a huge distinction a loan versus cash cash I like cash money 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 beautiful difficult check in the mail where you get real cash from the IRS all right so let’s discuss how it works because it seems like to me if it’s a if it’s employee retention credit that person needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have actually owned a company but it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need 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 proper so there were six quarters the program was open well stroll us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and three of 2021. okay 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 money just how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the turmoil 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 up to five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members 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 concern is why does nobody know about this since appearance when I first heard about this when I initially met Josh you understand I have actually got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many lots of 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 think it because I use the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we utilized them wisely to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even contacted us to my politician good friends Guv Senators they didn’t learn about it I suggest that’s how you know that’s how misinformation is that there’s no information out there then a lot of people informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody understand about the staff member retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan procedure the federal government made it really clear that if you desired 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 just process procedure that’s all um and here there was chaos since remember in the original cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC due to the fact that 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 know how to do this not truly she or he’s never done it before do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll business your accountant no your accounting professional’s never done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has stayed in business given that 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot 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 utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
employer whose business is completely or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Schedule.
1. The credit is readily 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) small.
services who take Small Business Loans.
2. To qualify, the company needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. When the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying wages varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing support usually offer know-how and support to assist businesses navigate the intricate process of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Is Employee Retention Credit A Scam
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon elements such as your industry, income, and operations. If you fulfill the requirements for the credit and determine the maximum credit quantity you can claim, they can help figure out.
Documents and Computation: ERC filing services will help in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help determine the credit quantity based upon eligible earnings and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify possible opportunities for retroactive credits. They can help you amend prior tax returns to claim these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the necessary kinds and documents in your place. This consists of finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have developed with time. These business remain updated with the current changes and ensure that your filings adhere to the most present guidelines. If the Internal revenue service demands additional details or performs an audit related to your ERC claim, they can also provide continuous assistance.
It is very important to research and veterinarian any business offering ERC filing support to guarantee their trustworthiness and know-how. Look for established firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who use ERC submitting assistance.
Remember that while these companies can offer important help, it’s always an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified choices and ensure 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 steps. The goal of the ERC is to encourage businesses 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 offered to eligible companies, including for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, companies must meet one of two requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As pointed out previously, for 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the exact 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 is equal to a portion (approximately 70%) of qualified salaries paid to employees, consisting of certain health plan expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they got a PPP loan. The same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, permitting eligible employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for businesses to change prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment tax returns, typically Kind 941. The excess can be reimbursed to the company if the credit goes beyond the quantity of work taxes owed.
It is necessary to note that the ERC arrangements and eligibility criteria have evolved gradually. The very best course of action is to seek advice from a tax professional or go to the official IRS site for the most up-to-date and comprehensive information relating to the ERC, consisting of any current legal changes or updates.
To get approved for the ERC, an organization should satisfy among the following requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. For 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and companies that received a PPP loan may have restrictions on claiming the credit.
The process for declaring the ERC includes finishing the necessary types and including the credit on your work income tax return (generally Form 941). The exact time it takes to process the credit can differ based on several factors, consisting of the complexity of your service and the work of the internal revenue service. It’s suggested to talk to a tax professional for assistance specific to your circumstance.
There are several companies that can assist with the procedure of declaring the ERC. Some widely known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based upon basic knowledge and might not show the most current updates or modifications to the ERC. It is necessary to consult with a tax expert or check out the main internal revenue service site for the most accurate and updated details concerning eligibility, claiming procedures, and readily available help.
Less than 100. If the company had 100 or fewer workers on average in 2019, then the credit is based.
on incomes paid to all staff members whether they in fact worked or not. Simply put, even if the.
employees worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 staff members usually in 2019, then the credit is.
permitted just for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just cash payments but likewise a part of the cost of company.
offered healthcare. Is Employee Retention Credit A Scam
Payment.
Employers can be instantly compensated for the credit by reducing the quantity of payroll taxes they.