Lets talk first about Maryland Treatment Of Employee Retention Credit :
Our group here what do these guys doing everybody in this room is helping teach people about ERC and uh always provide a stunning breakfast and have people truly learn about the program we should head to the space where we are able to show some of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I indicate you know if you just start 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 mean 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 confirmed the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything up until they actually get the money they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their savings account and they can really trust Wonder trust that the process has been ended up and the number of you believe you have actually processed since you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you require you need 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly essential today the employee retention credit which most of you have never ever heard of I definitely hadn’t become aware of it till extremely just recently and found out 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 between 5 and five hundred so I’ve got the expert 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 not easy this isn’t like PPP we simply contact your bank supervisor and state give 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 spokesperson for this I like this program it’s going away very soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered services 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 huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund alright go on sorry I just have to make certain we got that point I indicate that’s a big difference a loan versus cash money I like money cash that’s what we’re talking 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 difficult check in the mail where you get real money from the internal revenue service all right so let’s talk about 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 a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you needed to have owned a service but it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 employees and you paid federal payroll taxes that’s why you would be qualified so you need 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 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part cash just how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s salary to an optimum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wished 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 five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant 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 IRS so it’s big obviously now the huge question is why does no one understand about this because appearance when I initially heard about this when I initially met Josh you know I’ve got great deals of investments in lots of companies I’m a major supporter for entrepreneurship in America and make many many investments in business owners of which many suffered through the pandemic when I first heard about 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 should have and we utilized them sensibly to stay alive during the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even contacted us to my politician pals Guv Senators they didn’t learn about it I suggest that’s how you know that’s how misinformation is that there’s no details out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one know about the employee retention credit you know what’s fascinating you’re talking about the banks Kevin because 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was turmoil since keep in mind in the original cares act you might not do 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 not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the government never ever made it clear to any person about how to.
do this does your CFO know how to do this not really she or he’s never done it in the past 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 company your accounting professional no your accountant’s never ever done this before unless you have an account that went into this business and bottom line my company Kevin has actually been in business since 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work opportunity 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 created to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Since of COVID-19 or whose gross receipts, employer whose organization is completely or partly suspended.
decrease by more than 50%.
1. The credit is readily available to all companies despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 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 overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes varies by whether a company had, on average, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing support normally supply knowledge and assistance to help companies navigate the complicated process of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Maryland Treatment Of Employee Retention Credit
Eligibility Evaluation: These business will assess your company’s eligibility for the ERC based upon factors such as your industry, revenue, and operations. They can help identify if you satisfy the requirements for the credit and recognize the maximum credit quantity you can claim.
Documents and Calculation: ERC filing services will help in gathering the needed paperwork, such as payroll records and financial declarations, to support your claim. They will also help calculate the credit quantity based upon eligible wages and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you change previous tax returns to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the needed kinds and paperwork on your behalf. This includes completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have actually progressed with time. These business remain updated with the current changes and ensure that your filings adhere to the most current standards. They can also offer continuous support if the IRS requests extra details or conducts an audit related to your ERC claim.
It is very important to research and vet any business using ERC filing support to ensure their reliability and expertise. Try to find recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who use ERC filing assistance.
Remember that while these business can offer important help, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified choices and ensure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate companies to retain and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit services, tax-exempt companies, and certain governmental entities. To qualify, companies need to fulfill one of two criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As pointed out earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross invoices compared to the very 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 amounts to a portion (up to 70%) of certified salaries paid to staff members, including specific health plan costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. The very same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, allowing eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for organizations to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, normally Form 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of work taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have actually developed in time. The very best strategy is to consult with a tax professional or go to the official IRS website for the most comprehensive and updated information concerning the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, an organization must satisfy one of the following criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the 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% decrease in gross invoices compared to the right away preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and businesses that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC involves finishing the needed types and including the credit on your work income tax return (normally Kind 941). The exact time it takes to process the credit can vary based upon a number of aspects, consisting of the complexity of your company and the workload of the internal revenue service. It’s suggested to speak with a tax expert for assistance specific to your scenario.
There are a number of companies that can help with the procedure of declaring the ERC. Some well-known companies that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details supplied here is based upon basic knowledge and might not reflect the most recent updates or modifications to the ERC. It’s important to talk to a tax professional or visit the main internal revenue service site for the most precise and up-to-date details regarding eligibility, claiming procedures, and offered support.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on salaries paid to all workers whether they really worked or not. Simply put, even if the.
employees worked full time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
permitted only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “earnings” consists of not just cash payments however also a portion of the expense of company.
supplied healthcare. Maryland Treatment Of Employee Retention Credit
Companies can be instantly compensated for the credit by reducing the quantity of payroll taxes they.