Lets talk first about Kentucky Employee Retention Credit Taxable :
Our group here what do these guys doing everyone in this room is helping teach people about ERC and uh always provide a stunning breakfast and have individuals truly learn about the program we ought to head to the room where we have the ability to display some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of millions of 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 just start to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I suggest 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 confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
receive this you know the check is chosen sure which’s when they pay so they do not pay anything till they in fact receive the cash they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they transfer it into their bank account and they can truly trust Wonder trust that the procedure has been ended up and how many you believe you have actually processed considering that you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’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 Wonderful here you’re at my YouTube channel we’re discussing something actually essential today the employee retention credit which most of you have actually never become aware of I definitely had not become aware of it 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 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply call your bank manager and state 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 like this program it’s going away very soon you got to find out everything about it let’s talk staff member 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 businesses 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 exactly so the ERC is a refund that’s.
correct the money cash payroll tax refund okay go on sorry I simply have to make certain we got that point I suggest that’s a big distinction a loan versus money money I like money cash that’s what we’re discussing 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 difficult check in the mail where you get real money from the IRS all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s staff member retention credit that individual had to be a worker so I’m going to make the Presumption 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 company but it’s based upon you having W-2 employees 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 qualified so you have to be on payroll in 2020 on the W-2 and you need 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 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and 3 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 preferred part money just 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 an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum of seven thousand per quarter how did that take place um they just altered the rules in.
2021 versus since the mayhem of the pandemic so they wished 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 after that what happens 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 six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP cash would have to be decreased 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 cash somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a restaurant in New York 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 huge undoubtedly now the big concern is why does nobody understand about this because look when I initially heard about this when I first fulfilled Josh you understand I have actually got great deals of investments in lots of companies I’m a major advocate for entrepreneurship in America and make many many investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I do not believe it because I use the PPP we went through the cash 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 should have and we utilized them carefully to stay alive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even contacted us to my politician pals Governor Senators they didn’t learn about it I mean that’s how you understand that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does nobody know about the staff member retention credit you understand what’s intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan process 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 just procedure process that’s all um and here there was chaos since keep in mind in the initial cares act you might 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 government never made it clear to anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never ever done it previously do the banks do it nope the banks do not do it the payroll business 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 went into this organization and bottom line my firm Kevin has been in business because 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big big business customers have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose company is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all companies despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying wages differs by whether an employer had, typically, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing assistance typically supply know-how and support to help companies browse the complex process of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Kentucky Employee Retention Credit Taxable
Eligibility Evaluation: These companies will assess your service’s eligibility for the ERC based upon factors such as your industry, profits, and operations. If you satisfy the requirements for the credit and recognize the optimum credit quantity you can declare, they can assist figure out.
Documents and Estimation: ERC filing services will assist in collecting the required documents, such as payroll records and financial statements, to support your claim. They will also assist compute the credit quantity based upon qualified earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to determine potential chances for retroactive credits. They can assist you amend previous income tax return to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and submit the necessary forms and documentation on your behalf. This includes finishing Type 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have actually evolved in time. These business stay upgraded with the most recent modifications and make sure that your filings adhere to the most current guidelines. They can also offer continuous support if the internal revenue service demands extra info or carries out an audit related to your ERC claim.
It is necessary to research and vet any company using ERC filing assistance to ensure their credibility and expertise. Look for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax experts who offer ERC filing assistance.
Remember that while these business can offer important support, it’s constantly a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal 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 been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit services, tax-exempt organizations, and specific governmental entities. To certify, companies should satisfy one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As pointed out previously, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (as much as 70%) of qualified salaries paid to workers, including particular health plan costs. The maximum 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 Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they received a PPP loan. The very same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, enabling qualified companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for organizations to change prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, normally Form 941. If the credit exceeds the quantity of employment taxes owed, the excess can be refunded to the employer.
It’s important to keep in mind that the ERC provisions and eligibility criteria have actually developed with time. The best course of action is to seek advice from a tax professional or visit the official internal revenue service site for the most detailed and updated details concerning the ERC, including any recent legislative changes or updates.
To qualify for the ERC, a company should satisfy one of the following requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a significant decrease is specified 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% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and services that received a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC includes finishing the needed types and consisting of the credit on your work tax return (generally Form 941). The exact time it takes to process the credit can vary based on several factors, including the complexity of your business and the work of the IRS. It’s suggested to speak with a tax professional for guidance particular to your circumstance.
There are numerous business that can assist with the procedure of declaring the ERC. Some widely known business that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info supplied here is based upon basic understanding and might not reflect the most current updates or changes to the ERC. It is essential to speak with a tax professional or visit the main internal revenue service site for the most precise and up-to-date info regarding eligibility, declaring procedures, and readily available assistance.
Less than 100. The credit is based if the company had 100 or less staff members on average in 2019.
on wages paid to all employees whether they really worked or not. To put it simply, even if the.
workers worked full time and made money for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
allowed just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” includes not just money payments but likewise a part of the expense of company.
supplied healthcare. Kentucky Employee Retention Credit Taxable
Companies can be instantly repaid for the credit by lowering the amount of payroll taxes they.