Lets talk first about Is It Too Late To Apply For Employee Retention Credit :
Our team here what do these guys doing everyone in this space is helping teach individuals about ERC and uh always provide a beautiful breakfast and have people really learn more about the program we should head to the room where we have the ability to show a few of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I indicate you know if you simply begin to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I mean think about the number of 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 confirmed 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 understand when you
receive this you understand the check is chosen sure which’s when they pay so they do not pay anything up until they actually receive the cash they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their savings account and they can genuinely trust Wonder trust that the procedure has actually been finished and how many you believe you have actually processed given that you started this we’re about 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 require 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 Fantastic here you’re at my YouTube channel we’re talking about something actually important today the employee retention credit which most of you have never ever heard of I definitely hadn’t become aware of it up until really recently and found out a lot about it because this is probably the lowest expense of capital for any small company anywhere
anytime if you have workers in between 5 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 Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just contact your bank manager and say provide 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 become yes the Ambassador and paid representative for this I love this program it’s disappearing very soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used services three 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 distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I just have to make sure we got that point I imply that’s a big distinction a loan versus cash money I like cash 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 original cares Act is the ERC and yes Kevin it is a gorgeous difficult check in the mail where you get actual cash from the internal revenue service all right so let’s talk about how it works since it sounds like to me if it’s a if it’s employee retention credit that individual needed to be a worker 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 needed to have actually owned an organization 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 eligible so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part cash how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s salary to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to a maximum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 approximately 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five 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 caution here the PPP cash would need to be minimized 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 usually 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 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 huge clearly now the big concern is why does nobody understand about this since look when I first heard about this when I initially satisfied Josh you know I have actually got great deals of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of numerous investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of 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 which were well been worthy of 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 friends Guv Senators they didn’t know about it I mean that’s how you know 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 due to the fact that 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 talking about the banks Kevin since in the PPP loan procedure the federal government made it extremely clear that if you desired 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 simply process process that’s all um and here there was chaos because keep in mind in the initial cares act you could refrain from doing both programs so if you had done PPP you could not do ERC in the original program and when they changed 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 government never ever 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 before do the banks do it nope the banks don’t 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 entered into this business and bottom line my company Kevin has actually been in business considering that 2009 and we’ve been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge business customers have worked with bottom line to recuperate other federal government programs we have actually 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 federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, company whose service is completely or partly suspended.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is fully 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. Once the.
employer’s gross receipts 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 certifying wages paid up to $10,000 in overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying incomes varies by whether an employer had, on average, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing support normally provide knowledge and support to help businesses browse the complicated procedure of claiming the credit. They can offer different services, including:.
How is the employee retention credit calculated? Is It Too Late To Apply For Employee Retention Credit
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based upon elements such as your market, income, and operations. They can assist identify if you fulfill the requirements for the credit and recognize the optimum credit amount you can declare.
Documents and Calculation: ERC filing services will assist in collecting the necessary documents, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit amount based upon qualified incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to identify potential chances for retroactive credits. They can help you amend previous tax returns to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the necessary forms and documents in your place. This includes completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have actually evolved gradually. These companies remain updated with the current modifications and ensure that your filings adhere to the most present guidelines. They can likewise provide continuous support if the IRS requests extra information or conducts an audit related to your ERC claim.
It is essential to research study and vet any company providing ERC filing help to ensure their reliability and proficiency. Look for established companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who provide ERC filing support.
Bear in mind that while these companies can offer valuable help, it’s constantly a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and ensure 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 measures. The objective of the ERC is to motivate businesses 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 available to eligible companies, including for-profit services, tax-exempt organizations, and certain governmental entities. To qualify, employers must meet one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts 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 quantity amounts to a portion (as much as 70%) of certified salaries paid to staff members, including certain health plan costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they received a PPP loan. However, the exact 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, allowing eligible companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to change prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work tax returns, normally Kind 941. The excess can be refunded to the company if the credit goes beyond the quantity of work taxes owed.
It is essential to note that the ERC arrangements and eligibility requirements have actually evolved gradually. The very best course of action is to speak with a tax expert or go to the official IRS website for the most in-depth and current info concerning the ERC, consisting of any recent legal modifications or updates.
To get approved for the ERC, a company should fulfill among the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. Federal government entities and companies that received a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC includes completing the required kinds and consisting of the credit on your employment income tax return (generally Kind 941). The exact time it takes to process the credit can differ based on numerous elements, consisting of the complexity of your service and the work of the internal revenue service. It’s recommended to talk to a tax professional for guidance particular to your circumstance.
There are a number of companies that can help with the procedure of claiming the ERC. Some well-known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based upon basic knowledge and might not reflect the most current updates or modifications to the ERC. It’s important to consult with a tax professional or visit the main IRS site for the most precise and current information relating to eligibility, claiming treatments, and readily available support.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on salaries paid to all workers whether they in fact worked or not. In other words, even if the.
workers worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
enabled only for incomes paid to workers who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply cash payments but also a part of the cost of company.
offered healthcare. Is It Too Late To Apply For Employee Retention Credit
Employers can be immediately repaid for the credit by decreasing the amount of payroll taxes they.