Lets talk first about Is There A Deadline To Apply For Employee Retention Credit :
Our group here what do these people doing everybody in this space is assisting teach individuals about ERC and uh always supply a beautiful breakfast and have people actually learn about the program we need to 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 numerous millions of dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I imply you understand if you just start to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I indicate consider the number of actual clients that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are confirmed 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 know when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything till they in fact get the cash they do not 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 really trust Wonder trust that the procedure has actually been ended up and how many you think you have actually processed because you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing which’s what you need 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 actually essential today the staff member retention credit which the majority of you have never ever become aware of I definitely had not heard of it up until very recently and found out a lot about it because this is probably the most affordable expense of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator 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 simply phone 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 ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away very soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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 all right go on sorry I just need to make sure we got that point I indicate that’s a huge difference a loan versus cash cash I like cash cash that’s what we’re discussing fine 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 tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s worker retention credit that individual needed to be an employee 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 workers right you needed to have actually owned a business however it’s based upon you having W-2 workers 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 first six months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part money 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 precise Kevin is 50 of the staff member’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus due to the fact that the chaos 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 up to 5 thousand Max and after that what occurs 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 six thousand dollars per worker that is since that’s a great deal of money it is now there’s a caveat here the PPP money would need to be lowered from the twenty 6 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 cash 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 big obviously now the huge concern is why does no one understand about this since appearance when I initially found out about this when I first met Josh you know I have actually got great deals of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous lots of financial investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I don’t believe it since I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them wisely to survive during the pandemic so when I became aware of this I said nah it can’t hold true however when I dug around I even contacted us to my politician buddies Guv Senators they didn’t understand about it I suggest that’s how you understand that’s how false information is that there’s no information out there then a lot of individuals told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one learn about the worker retention credit you know what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan procedure 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 process procedure that’s all um and here there was chaos since keep in mind in the original cares act you could not do 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 not doing ERC since 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 truly 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 a few 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 organization and bottom line my company Kevin has been in business because 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big huge corporate customers have dealt with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose company is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all companies regardless of size including tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings differs by whether an employer had, usually, more or less than.
100 staff members in 2019.
Companies that focus on ERC filing help typically provide competence and support to assist services navigate the complicated procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Is There A Deadline To Apply For Employee Retention Credit
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based on elements such as your market, profits, and operations. They can help determine if you fulfill the requirements for the credit and determine the optimum credit amount you can declare.
Documentation and Calculation: ERC filing services will assist in gathering the needed paperwork, such as payroll records and monetary statements, to support your claim. They will likewise help compute the credit quantity based on qualified earnings and other certifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can examine your past payroll records and financials to identify possible chances for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the needed types and paperwork in your place. This consists of finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually developed gradually. These business remain upgraded with the latest modifications and guarantee that your filings comply with the most present standards. If the IRS demands additional details or performs an audit associated to your ERC claim, they can also offer continuous support.
It is necessary to research study and vet any business providing ERC filing assistance to guarantee their trustworthiness and know-how. Look for recognized firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax specialists who provide ERC submitting support.
Keep in mind that while these companies can provide important help, it’s always a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified choices and make sure accurate filings.
The Worker 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 encourage organizations to retain and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit businesses, tax-exempt organizations, and certain governmental entities. To qualify, employers should meet one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As discussed previously, for 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts 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 amount is equal to a percentage (approximately 70%) of qualified salaries paid to workers, including particular health insurance costs. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. Nevertheless, the very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, enabling eligible employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to modify prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment income tax return, usually Form 941. The excess can be reimbursed to the employer if the credit surpasses the quantity of work taxes owed.
It’s important to note that the ERC arrangements and eligibility requirements have developed with time. The best course of action is to speak with a tax professional or visit the main internal revenue service site for the most updated and detailed info regarding the ERC, consisting of any current legal changes or updates.
To get approved for the ERC, a company should fulfill one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified 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 instantly preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Government entities and services that got a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC involves completing the essential types and consisting of the credit on your work tax return (normally Type 941). The exact time it takes to process the credit can differ based upon numerous factors, consisting of the intricacy of your company and the work of the IRS. It’s advised to seek advice from a tax expert for assistance particular to your scenario.
There are a number of companies that can assist with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some widely known companies that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business directly to ask about their services and costs.
Please keep in mind that the information provided here is based on general knowledge and may not show the most current updates or changes to the ERC. It is essential to talk to a tax professional or visit the official internal revenue service site for the most up-to-date and precise info regarding eligibility, declaring procedures, and readily available support.
Less than 100. If the employer had 100 or less staff members on average in 2019, then the credit is based.
on incomes paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply money payments but also a part of the cost of employer.
offered healthcare. Is There A Deadline To Apply For Employee Retention Credit
Companies can be instantly reimbursed for the credit by reducing the quantity of payroll taxes they.