Lets talk first about Kbkg Employee Retention Credit :
Our group here what do these guys doing everyone in this space is helping teach people about ERC and uh always supply a lovely breakfast and have individuals really find out about the program we must head to the space where we are able to show some of the checks that we are getting for business and I wish to see that what is this this is uh numerous countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I suggest you know if you simply begin to take a 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 imply it’s just I indicate think of the number of actual customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed 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 have the ability to track it you know when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything up until they really 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 bank account and they can truly rely on Wonder trust that the procedure has actually been completed and how many you believe you’ve processed since you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you require you require experts 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 Wonderful here you’re at my YouTube channel we’re discussing something really essential today the employee retention credit which most of you have actually never ever become aware of I definitely hadn’t become aware of it up until very just recently and learned a lot about it due to the fact that this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have staff members in 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 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 state offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I like 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 provided companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money cash payroll tax refund alright go on sorry I just need to make sure we got that point I suggest that’s a huge difference a loan versus money money I like cash money that’s what we’re speaking 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 beautiful tough check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s employee 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 individuals on the cap table not for investors it’s for staff members right you had to have actually owned a service however it’s based upon you having W-2 workers in America not 10.99. As long as you had W-2 workers 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 appropriate so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s income to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that happen um they just changed the rules in.
2021 versus since 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 five thousand Max and then what happens 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 staff member that is because that’s a great deal of cash it is now there’s a caution here the PPP cash 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 somewhere around ten thousand dollars an individual 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 money you would still get a million dollar in the mail from the internal revenue service so it’s huge undoubtedly now the huge concern is why does nobody know about this due to the fact that appearance when I initially heard about this when I initially fulfilled Josh you understand I have actually got lots of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of lots of financial investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t believe it because I use the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we utilized them sensibly to survive throughout the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my political leader pals Governor Senators they didn’t know about it I mean that’s how you understand that’s how false information is that there’s no info out there then a lot of individuals told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan process 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 procedure process that’s all um and here there was mayhem because remember in the initial cares act you might refrain from doing both programs so if you had done PPP you could not do ERC in the initial program and when they altered 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 anybody about how to.
do this does your CFO understand how to do this not really she or he’s never done it previously do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our big big corporate clients have worked with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member 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 approximately $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, company whose company is completely or partially suspended.
decline by more than 50%.
1. The credit is offered to all employers regardless of size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the employer has to fulfill 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 receipts are below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries varies by whether an employer had, typically, basically than.
100 workers in 2019.
Companies that concentrate on ERC filing assistance normally provide knowledge and support to assist services navigate the intricate process of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? Kbkg Employee Retention Credit
Eligibility Evaluation: These companies will examine your company’s eligibility for the ERC based upon elements such as your industry, income, and operations. If you meet the requirements for the credit and recognize the optimum credit quantity you can declare, they can assist determine.
Paperwork and Estimation: ERC filing services will assist in gathering the required paperwork, such as payroll records and financial statements, to support your claim. They will also help compute the credit quantity based on qualified incomes and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can evaluate your past payroll records and financials to identify potential chances for retroactive credits. They can help you modify previous income tax return to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and submit the required types and documentation on your behalf. This includes finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually evolved gradually. These companies remain updated with the latest modifications and make sure that your filings adhere to the most existing guidelines. If the IRS demands additional details or conducts an audit related to your ERC claim, they can likewise supply continuous support.
It is necessary to research and vet any company offering ERC filing assistance to ensure their trustworthiness and know-how. Try to find established companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax specialists who use ERC filing assistance.
Keep in mind that while these companies can supply important assistance, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to encourage services to maintain and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit services, tax-exempt organizations, and particular governmental entities. To qualify, companies must meet one of two requirements:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As pointed out earlier, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of qualified salaries paid to staff members, including particular health plan expenditures. 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 qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. Nevertheless, the very same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, enabling qualified employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for companies to amend prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Type 941. If the credit goes beyond the quantity of work taxes owed, the excess can be refunded to the employer.
It is necessary to note that the ERC arrangements and eligibility requirements have actually evolved with time. The very best course of action is to seek advice from a tax expert or go to the official IRS site for the most current and detailed info relating to the ERC, consisting of any recent legislative modifications or updates.
To get approved for the ERC, an organization needs to meet one of the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the necessary forms and consisting of the credit on your employment tax return (normally Form 941). The exact time it takes to process the credit can differ based upon several factors, consisting of the complexity of your company and the work of the IRS. It’s advised to talk to a tax expert for guidance particular to your circumstance.
There are numerous business that can assist with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some widely known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these companies straight to ask about their charges and services.
Please note that the details supplied here is based upon general understanding and might not reflect the most recent updates or modifications to the ERC. It is essential to talk to a tax professional or check out the official IRS site for the most up-to-date and accurate info regarding eligibility, declaring procedures, and offered assistance.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on salaries paid to all staff members whether they in fact worked or not. In other words, even if the.
employees 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.
permitted only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply money payments but likewise a part of the expense of employer.
supplied healthcare. Kbkg Employee Retention Credit
Companies can be instantly reimbursed for the credit by reducing the quantity of payroll taxes they.