Lets talk first about Is Innovation Refunds A Legitimate Company :
Our team here what do these people doing everybody in this room is assisting teach people about ERC and uh constantly supply a lovely breakfast and have people actually discover the program we must head to the space where we are able to show a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I suggest you know if you simply begin to look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I indicate 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 IRS heading to the consumer so that’s how you’re able to track it you understand when you
get this you know the check is gone for sure and that’s when they pay so they don’t pay anything until they really get the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their savings account and they can genuinely trust Wonder trust that the process has been ended up and the number of you believe 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 plainly they understand what they’re doing and that’s what you need you need experts 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 speaking about something actually crucial today the staff member retention credit which the majority of you have actually never become aware of I definitely hadn’t heard of it till extremely just recently and learned a lot about it since this is probably the lowest cost of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I have actually got the specialist 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 up 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 tell all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I enjoy this program it’s disappearing 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 developed the cares Act and the cares act used companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund alright go on sorry I simply have to make certain we got that point I mean that’s a huge distinction a loan versus money cash I like cash money that’s what we’re speaking about alright 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 stunning difficult check in the mail where you get real cash from the IRS all right so let’s discuss how it works due to the fact that it sounds 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 Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you had to have owned an organization but it’s based on you having W-2 staff members 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 proper so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. fine 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 money just how much can you return per employee 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 salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus due to the fact that the mayhem 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 as much as five thousand Max and after that what takes place 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 staff member that is because that’s a lot of cash it is now there’s a caveat here the PPP money would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower 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 dining establishment in New york city 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 certainly now the huge concern is why does no one know about this because look when I initially heard about this when I initially satisfied Josh you understand I have actually got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many numerous investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I do not think it since I use 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 and that were well been worthy of and we utilized them sensibly to survive throughout the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even called to my politician good friends Guv Senators they didn’t learn about it I mean that’s how you understand that’s how false information is that there’s no information out there then a lot of people informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s interesting you’re talking about the banks Kevin since in the PPP loan process 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 country and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was turmoil since keep in mind 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 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 anybody about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it previously do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accountant’s never ever done this before unless you have an account that entered into this service and bottom line my company Kevin has stayed in business given that 2009 and we’ve been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge business customers have actually dealt with bottom line to recover other federal government programs we’ve 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 federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
company whose organization is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is offered to all companies no matter size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is completely 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. As soon as the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer qualify.
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 total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying earnings differs by whether an employer had, typically, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing help generally supply expertise and assistance to assist companies browse the complicated process of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Is Innovation Refunds A Legitimate Company
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based upon elements such as your market, earnings, and operations. If you fulfill the requirements for the credit and identify the optimum credit quantity you can claim, they can help determine.
Documentation and Estimation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit amount based upon qualified earnings and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the needed types and documents on your behalf. This includes finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually evolved over time. These business remain upgraded with the current changes and ensure that your filings adhere to the most existing standards. If the IRS demands additional info or carries out an audit associated to your ERC claim, they can also offer continuous assistance.
It is necessary to research and vet any company providing ERC filing support to ensure their reliability and know-how. Search for recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax specialists who offer ERC submitting assistance.
Bear in mind that while these business can offer valuable help, it’s constantly an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified choices and ensure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to motivate 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 available to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, employers need to fulfill one of two criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease 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 employer’s share of Social Security taxes. The credit amount is equal to a percentage (as much as 70%) of qualified wages paid to staff members, including certain health plan expenditures. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they received a PPP loan. However, the very same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, enabling eligible companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision supplies a chance for organizations to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Kind 941. The excess can be refunded to the employer if the credit exceeds the quantity of employment taxes owed.
It is necessary to note that the ERC arrangements and eligibility requirements have progressed over time. The very best strategy is to seek advice from a tax expert or check out the official internal revenue service site for the most in-depth and current info regarding the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a business should satisfy among the following criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and businesses that got a PPP loan might have limitations on declaring the credit.
The procedure for claiming the ERC includes finishing the essential forms and including the credit on your work tax return (normally Kind 941). The exact time it requires to process the credit can vary based upon numerous elements, including the complexity of your business and the work of the IRS. It’s suggested to talk to a tax expert for assistance particular to your scenario.
There are several companies that can help with the procedure of claiming the ERC. Some widely known business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details offered here is based upon general understanding and may not show the most recent updates or changes to the ERC. It’s important to talk to a tax expert or go to the main IRS site for the most current and accurate details regarding eligibility, claiming treatments, and readily available help.
Less than 100. If the company had 100 or less employees usually in 2019, then the credit is based.
on salaries paid to all staff members whether they really worked or not. In other words, even if the.
staff members 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 workers typically in 2019, then the credit is.
permitted just 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 portion of the expense of employer.
offered healthcare. Is Innovation Refunds A Legitimate Company
Payment.
Companies can be instantly repaid for the credit by reducing the amount of payroll taxes they.