Lets talk first about Mary Stevens Employee Retention Credit :
Our team here what do these men doing everybody in this space is helping teach people about ERC and uh always provide a lovely breakfast and have people really learn about the program we must head to the room where we are able to display a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I mean you understand 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 suggest it’s just I suggest think about the number of real clients 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 verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
get this you know the check is gone for sure which’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 until this letter is verified the check is on the method they deposit it into their bank account and they can truly trust Wonder trust that the procedure has actually been ended up and the number of you think you’ve processed because you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you need you need specialists on the other end of the phone to process this and get it to where you get one of these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re discussing something actually crucial today the staff member retention credit which most of you have never ever heard of I certainly hadn’t become aware of it up until really just recently and learned a lot about it because 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’ve got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just contact your bank manager and say provide me a loan it does not 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’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very 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 created the cares Act and the cares act used 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 distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund all right go on sorry I just have to ensure we got that point I indicate that’s a big difference a loan versus cash cash I like money money that’s what we’re speaking about 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 stunning hard check in the mail where you get real cash 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 employee retention credit that person had to be a staff member so I’m going to make the Presumption this money 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 owned a business however it’s based upon you having W-2 staff members 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 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. alright so that’s how it’s determined you have to be on the W-2 during that period 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 exact Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s wage to an optimum of 7 thousand per quarter how did that take place um they just 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 workers 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 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 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of money it is now there’s a caution here the PPP cash would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say 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 cash you would still get a million dollar in the mail from the internal revenue service so it’s big undoubtedly now the big concern is why does nobody learn about this because look when I initially found out about this when I initially satisfied Josh you know I’ve got great deals of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not think it because I utilize 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 which were well been worthy of and we utilized them wisely to survive during the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even contacted us to my political leader friends Guv Senators they didn’t learn about it I imply that’s how you know that’s how false information is that there’s no info out there then a lot of individuals informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin because in the PPP loan procedure 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 huge banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was mayhem because remember in the original cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the initial 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 ever made it clear to anyone about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it in the past 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 company your accounting professional no your accounting professional’s never done this before unless you have an account that went into this organization 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 recover money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business clients have actually dealt with bottom line to recuperate other government programs we have actually 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 employee retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Because of COVID-19 or whose gross invoices, employer whose company is totally or partly suspended.
decline by more than 50%.
1. The credit is available to all employers despite size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether a company had, on average, basically than.
100 workers in 2019.
Business that specialize in ERC filing assistance typically offer knowledge and support to assist services browse the intricate process of claiming the credit. They can provide various services, including:.
How is the employee retention credit calculated? Mary Stevens Employee Retention Credit
Eligibility Evaluation: These companies will assess your company’s eligibility for the ERC based on elements such as your market, revenue, and operations. If you satisfy the requirements for the credit and recognize the maximum credit amount you can declare, they can assist determine.
Documentation and Estimation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and financial statements, to support your claim. They will also help compute the credit amount based upon qualified earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can evaluate your past payroll records and financials to determine prospective chances for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the essential forms and documents in your place. This includes completing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have developed with time. These business remain upgraded with the latest modifications and make sure that your filings comply with the most present guidelines. They can also offer continuous assistance if the IRS demands additional information or performs an audit related to your ERC claim.
It’s important to research and veterinarian any business offering 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 relied on accounting companies or tax professionals who provide ERC filing assistance.
Keep in mind that while these business can offer valuable help, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate companies to retain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit companies, tax-exempt companies, and certain governmental entities. To certify, companies must fulfill one of two requirements:.
The 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 receipts. As pointed out previously, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial 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 Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (as much as 70%) of qualified wages paid to staff members, consisting of particular health plan expenses. 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: At first, services that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they got a PPP loan. Nevertheless, the same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, allowing qualified companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Kind 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the employer.
It is essential to keep in mind that the ERC arrangements and eligibility criteria have actually evolved gradually. The very best strategy is to speak with a tax professional or check out the main internal revenue service website for the most current and in-depth info concerning the ERC, consisting of any current legislative modifications or updates.
To receive the ERC, an organization should fulfill among the following requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have constraints on declaring the credit.
The procedure for claiming the ERC includes completing the required kinds and consisting of the credit on your employment income tax return (typically Type 941). The exact time it requires to process the credit can differ based on several aspects, consisting of the complexity of your organization and the workload of the internal revenue service. It’s suggested to talk to a tax expert for guidance particular to your situation.
There are numerous business that can assist with the process of claiming the ERC. Some popular business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based upon basic understanding and might not reflect the most recent updates or modifications to the ERC. It is necessary to seek advice from a tax professional or go to the main internal revenue service site for the most up-to-date and precise details concerning eligibility, declaring treatments, and readily available support.
Less than 100. If the company had 100 or fewer employees typically in 2019, then the credit is based.
on earnings paid to all workers whether they in fact worked or not. To put it simply, even if the.
staff members worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 employees usually in 2019, then the credit is.
permitted only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not just cash payments but likewise a portion of the expense of company.
provided health care. Mary Stevens Employee Retention Credit
Companies can be instantly compensated for the credit by decreasing the amount of payroll taxes they.