Lets talk first about Is The Employee Retention Credit For Employees :
Our group here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh always provide a beautiful breakfast and have individuals truly learn more about the program we ought to head to the room where we have the ability to show some of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I suggest you know if you just start to take a 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 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 validated the numbers are validated 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 understand the check is opted for sure which’s when they pay so they do not pay anything till they really receive the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they deposit it into their bank account and they can really trust Wonder trust that the process has been ended up and the number of you believe you’ve processed given that you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’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 Fantastic here you’re at my YouTube channel we’re talking about something actually crucial today the employee retention credit which most of you have actually never ever become aware of I definitely had not become aware of it up until extremely recently and discovered a lot about it because this is probably the most affordable expense of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just 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 inform all of us 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 disappearing soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I simply need to ensure 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 original cares Act is the ERC and yes Kevin it is a lovely hard 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 needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you had to have owned a service but it’s based upon you having W-2 employees 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 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 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 2 three and four of 2020 and you had quarters one 2 and 3 of 2021. fine 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 just how much can you get back 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 worker’s wage 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 income to a maximum of 7 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 workers 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 then what takes place 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a lot of cash it is now there’s a caution here the PPP money would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the big concern is why does no one understand about this because appearance 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 significant supporter for entrepreneurship in America and make many many investments in entrepreneurs of which numerous suffered through the pandemic when I initially found out about this I called BS I don’t believe it due to the fact that 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 survive 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 politician pals Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how false information is that there’s no info out there then a bunch 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 learn about the worker retention credit you understand what’s intriguing you’re speaking about 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 process procedure that’s all um and here there was mayhem since keep in mind 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 original 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 ever made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this before unless you have an account that went into this company and bottom line my company Kevin has actually stayed in business since 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 great deal of our big huge corporate clients have dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Because of COVID-19 or whose gross receipts, company whose business is completely or partially suspended.
decrease by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes differs by whether a company had, on average, basically than.
100 workers in 2019.
Business that specialize in ERC filing help normally offer proficiency and assistance to assist services navigate the complex process of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Is The Employee Retention Credit For Employees
Eligibility Assessment: These companies will examine your company’s eligibility for the ERC based upon aspects such as your market, income, and operations. If you meet the requirements for the credit and identify the maximum credit quantity you can claim, they can help figure out.
Paperwork and Estimation: ERC filing services will help in collecting the necessary documentation, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based on eligible earnings and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can evaluate your past payroll records and financials to determine potential chances for retroactive credits. They can assist you amend prior income tax return to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the necessary types and documents on your behalf. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually progressed in time. These companies stay updated with the current changes and make sure that your filings comply with the most current guidelines. If the Internal revenue service requests additional details or performs an audit related to your ERC claim, they can likewise provide ongoing assistance.
It is essential to research and vet any business providing ERC filing assistance to guarantee their credibility and know-how. Look for established firms with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax specialists who use ERC submitting support.
Remember that while these companies can provide valuable assistance, 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 accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage services to maintain and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit companies, tax-exempt organizations, and specific governmental entities. To certify, companies need to meet one of two criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As discussed previously, for 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly 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 percentage (up to 70%) of certified incomes paid to workers, consisting of certain health insurance costs. 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, businesses that received an Income Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they received a PPP loan. Nevertheless, the very same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, allowing eligible employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, generally Kind 941. The excess can be reimbursed to the employer if the credit goes beyond the amount of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have actually developed over time. The best course of action is to speak with a tax professional or visit the official IRS website for the most in-depth and updated info relating to the ERC, including any current legal modifications or updates.
To receive the ERC, a business needs to satisfy one of the following criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. 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 substantial decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered 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 constraints on declaring the credit.
The process for declaring the ERC involves finishing the needed forms and consisting of the credit on your work income tax return (generally Kind 941). The exact time it requires to process the credit can vary based on several factors, including the complexity of your service and the work of the IRS. It’s suggested to consult with a tax expert for guidance specific to your circumstance.
There are numerous business that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some well-known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these business straight to inquire about their costs and services.
Please note that the details provided here is based on basic understanding and may not reflect the most recent updates or changes to the ERC. It is necessary to talk to a tax professional or go to the official IRS site for the most precise and up-to-date details relating to eligibility, declaring treatments, and available support.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on earnings paid to all workers whether they really worked or not. Simply put, even if the.
employees worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members typically in 2019, then the credit is.
enabled only for incomes paid to employees who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply cash payments but also a part of the expense of employer.
supplied healthcare. Is The Employee Retention Credit For Employees
Companies can be right away reimbursed for the credit by lowering the amount of payroll taxes they.