Lets talk first about Is The Employee Retention Credit Legitimate :
Our group here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly supply a gorgeous breakfast and have individuals really learn more about the program we must head to the space where we have the ability to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to clients confirming that the check is on the method 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 imply it’s just I indicate consider the number of 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 customer so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure and that’s when they pay so they do not pay anything till they actually get the cash they do not pay bottom line Wonder trust anything till this letter is verified the check is on the way they transfer it into their bank account and they can genuinely trust Wonder trust that the process has been finished and how many you believe you’ve processed given that you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly 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 among these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re talking about something truly crucial today the worker retention credit which most of you have never become aware of I definitely hadn’t become aware of it until really just 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 between five and five hundred so I’ve got the professional 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 challenging this isn’t like PPP we just call up 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 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 love this program it’s going away soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money money payroll tax refund alright go on sorry I just need to make sure we got that point I mean that’s a huge difference a loan versus money cash I like money cash that’s what we’re discussing okay 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 money 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 individual had 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 investors it’s for staff members right you had to have owned an organization but it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 staff members 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 appropriate so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you return per employee that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus due to the fact that the turmoil 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 up to five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you develop twenty 6 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 since that’s a lot of cash it is now there’s a caution here the PPP cash would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing on average 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 where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big obviously now the big concern is why does nobody understand about this because look when I initially found out about this when I first met Josh you understand I have actually got lots of investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I don’t believe it because 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 and that were well deserved and we utilized them carefully to stay alive during the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t know about it I mean that’s how you know that’s how misinformation is that there’s no information out there then a bunch of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody know about the employee retention credit you understand what’s interesting you’re speaking about the banks Kevin because in the PPP loan process the federal government made it very 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 just procedure procedure that’s all um and here there was mayhem because keep in mind in the original cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the original program and when they changed 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 any person about how to.
do this does your CFO know how to do this not actually she or he’s never done it previously 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 accounting professional no your accounting professional’s never done this prior to unless you have an account that entered into this company and bottom line my company Kevin has 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 government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
company whose service is fully or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is available to all employers no matter size consisting of 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 certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying earnings differs by whether a company had, on average, more or less than.
100 staff members in 2019.
Companies that concentrate on ERC filing support typically offer know-how and support to help companies browse the complex procedure of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Is The Employee Retention Credit Legitimate
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based upon elements such as your industry, profits, and operations. They can help figure out if you meet the requirements for the credit and determine the maximum credit amount you can claim.
Paperwork and Computation: ERC filing services will help in collecting the required documents, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit quantity based upon qualified wages and other certifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can review your past payroll records and financials to recognize prospective chances for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the essential kinds and documentation in your place. This includes completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually progressed in time. These business stay upgraded with the most recent changes and make sure that your filings comply with the most existing guidelines. They can also offer continuous assistance if the internal revenue service requests extra details or carries out an audit related to your ERC claim.
It is essential to research and vet any company offering ERC filing assistance to guarantee their trustworthiness and knowledge. Look for established companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who offer ERC filing support.
Keep in mind that while these business can offer important support, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate organizations to keep and pay their employees 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, including for-profit services, tax-exempt companies, and specific governmental entities. To qualify, companies should satisfy one of two criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As discussed previously, for 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a percentage (as much as 70%) of certified earnings paid to staff members, consisting of specific health insurance expenditures. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they got a PPP loan. Nevertheless, the same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, enabling eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Kind 941. The excess can be reimbursed to the company if the credit exceeds the quantity of employment taxes owed.
It is necessary to note that the ERC provisions and eligibility requirements have developed with time. The very best course of action is to talk to a tax professional or check out the official internal revenue service website for the most up-to-date and in-depth info concerning the ERC, consisting of any recent legislative modifications or updates.
To receive the ERC, a business should fulfill one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, federal government entities and organizations that received a PPP loan may have limitations on declaring the credit.
The procedure for claiming the ERC includes completing the essential forms and including the credit on your employment income tax return (usually Type 941). The exact time it requires to process the credit can vary based upon a number of elements, including the complexity of your business and the workload of the IRS. It’s recommended to consult with a tax expert for guidance particular to your scenario.
There are a number of business that can aid with the process of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some well-known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these business directly to inquire about their services and costs.
Please keep in mind that the info supplied here is based upon basic understanding and may not reflect the most current updates or changes to the ERC. It is necessary to talk to a tax expert or check out the official internal revenue service website for the most up-to-date and accurate info relating to eligibility, declaring treatments, and offered assistance.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on wages paid to all employees 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 employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
allowed only for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just money payments but likewise a portion of the cost of employer.
provided health care. Is The Employee Retention Credit Legitimate
Employers can be right away compensated for the credit by minimizing the amount of payroll taxes they.