Lets talk first about Is Innovation Refunds Legitimate :
Our group here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh constantly supply a lovely breakfast and have individuals truly learn more about the program we need to head to the room 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 duplicate copies of the letters that go to customers verifying that the check is on the method I mean you understand if you just begin to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I indicate think of the number of real clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated 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 opted for sure which’s when they pay so they don’t pay anything up until they in fact receive the cash they do not pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their savings 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 since you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you need professionals 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 talking about something truly important today the employee retention credit which the majority of you have actually never ever heard of I certainly hadn’t heard of it till extremely recently and found out a lot about it because this is most likely the lowest expense of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply contact your bank supervisor and state provide me a loan it does not 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 become yes the Ambassador and paid representative for this I enjoy this program it’s going away soon you got to discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used businesses 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 huge difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund alright go on sorry I just need to make certain we got that point I indicate that’s a big distinction a loan versus cash money I like money money that’s what we’re talking 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 gorgeous difficult check in the mail where you get real cash from the IRS all right so let’s speak about how it works because it seems like to me if it’s a if it’s staff member 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 investors it’s for staff members right you had to have actually owned a business however it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part cash just how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus since the chaos of the pandemic so they wanted 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 5 thousand Max and then what takes place 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 six thousand dollars per employee that is since that’s a lot of money it is now there’s a caution 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 minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city 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 internal revenue service so it’s big clearly now the big concern is why does nobody know about this because look when I first heard about this when I initially satisfied Josh you know I’ve got great deals of investments in lots of business I’m a major advocate for entrepreneurship in America and make many many financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I do not believe it due to the fact that I use the PPP we went through the cash 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 should have and we utilized them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even contacted us to my politician buddies Governor Senators they didn’t know about it I suggest that’s how you know that’s how false information is that there’s no details out there then a lot of individuals told 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 worker retention credit you know what’s fascinating you’re discussing the banks Kevin since 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 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 since remember in the original cares act you could not do both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered 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 any person about how to.
do this does your CFO understand how to do this not actually he or she’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll business your accountant no your accountant’s never done this before unless you have an account that went into this company and bottom line my firm Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big big corporate clients have worked 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 home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose organization is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Schedule.
1. The credit is readily available to all companies despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. As soon as the.
company’s gross receipts go above 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 incomes paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether an employer had, usually, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing help typically offer competence and assistance to help services navigate the intricate process of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? Is Innovation Refunds Legitimate
Eligibility Assessment: These business will examine your organization’s eligibility for the ERC based on aspects such as your market, income, and operations. They can help determine if you fulfill the requirements for the credit and determine the optimum credit amount you can declare.
Paperwork and Calculation: ERC filing services will help in gathering the essential documents, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit amount based upon qualified salaries 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 identify potential opportunities for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required types and paperwork in your place. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually evolved with time. These business remain upgraded with the most recent modifications and ensure that your filings adhere to the most existing guidelines. They can also provide continuous assistance if the IRS requests extra details or carries out an audit related to your ERC claim.
It’s important to research and veterinarian any company providing ERC filing assistance to ensure their trustworthiness and knowledge. Look for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax experts who use ERC submitting assistance.
Keep in mind that while these companies can supply valuable help, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee precise filings.
The Employee 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 companies to keep and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, employers must fulfill one of two criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As mentioned earlier, for 2021, a considerable decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices 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 percentage (up to 70%) of qualified earnings paid to employees, consisting of particular 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: Initially, services that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they received a PPP loan. The very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, enabling qualified companies to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to modify prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the employer.
It is essential to keep in mind that the ERC arrangements and eligibility requirements have evolved in time. The very best strategy is to seek advice from a tax expert or visit the main internal revenue service site for the most comprehensive and up-to-date info regarding the ERC, including any recent legislative changes or updates.
To receive the ERC, a company should fulfill one of the following requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline 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 available to businesses of all sizes, consisting of tax-exempt companies, but there are some exceptions. Federal government entities and services that received a PPP loan might have constraints on claiming the credit.
The procedure for declaring the ERC includes completing the needed kinds and including the credit on your work tax return (normally Type 941). The exact time it takes to process the credit can vary based upon a number of factors, consisting of the intricacy of your service and the work of the internal revenue service. It’s suggested to consult with a tax expert for guidance specific to your situation.
There are a number of companies that can help with the process of declaring the ERC. Some popular business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information offered here is based upon general knowledge and might not reflect the most recent updates or changes to the ERC. It is essential to seek advice from a tax professional or go to the main internal revenue service site for the most precise and current information relating to eligibility, declaring procedures, and available support.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on wages paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers 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 workers on average in 2019.
allowed just for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just cash payments but also a portion of the expense of employer.
offered healthcare. Is Innovation Refunds Legitimate
Payment.
Employers can be right away reimbursed for the credit by reducing the amount of payroll taxes they.