Lets talk first about Payroll Tax Refund Through The Employee Retention Credit :
Our team here what do these people doing everybody in this room is helping teach individuals about ERC and uh constantly offer a stunning breakfast and have individuals truly learn more about the program we should head to the space where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I indicate you understand if you simply begin to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I mean consider the number of real customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified 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 have the ability to track it you understand when you
get this you know the check is gone for sure which’s when they pay so they do not pay anything until they really receive the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the way they transfer it into their bank account and they can genuinely trust Wonder trust that the process has actually been finished and the number of you believe you’ve processed given that you began 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 require you require professionals 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 truly crucial today the worker retention credit which most of you have never heard of I definitely hadn’t heard of it till really recently and found out a lot about it because this is probably the lowest expense of capital for any small company anywhere
anytime if you have employees between five and five hundred so I’ve got the specialist 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 supervisor and state give me a loan it does not 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 ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used organizations three chances 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 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 fine go on sorry I just have to ensure we got that point I suggest that’s a huge difference a loan versus cash 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 stunning hard check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works because 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 Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you needed to have actually owned a business but it’s based on you having W-2 staff members 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 eligible so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part money just how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific 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 escalated to 70 of the employee’s wage to an optimum of 7 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 approximately 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 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of cash it is now there’s a caution here the PPP money would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower 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 dining establishment in New York 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 obviously now the huge concern is why does no one know about this because appearance when I first found out about this when I first fulfilled Josh you know I have actually got lots of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make lots of many financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I don’t think it due to the fact that I use the PPP we went through the money 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 deserved and we utilized them carefully to stay alive during the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even called to my political leader friends Guv Senators they didn’t learn about it I indicate that’s how you know that’s how misinformation 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 also not real so let’s ask Josh why does no one know about the worker retention credit you know 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 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 nation and they would process process 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 chaos because keep in mind in the initial cares act you could not do both programs so if you had actually done PPP you might not do ERC in the original program and when they altered 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 federal government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not actually she or he’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 accountant’s never ever done this before unless you have an account that went into this service 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 government to recover money for Fortune 500 Fortune 1000 business so a lot of our big huge corporate customers have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, company whose business is totally or partially suspended.
decrease by more than 50%.
1. The credit is offered to all employers despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is completely or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. Once the.
company’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 certifying earnings paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying earnings differs by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing help typically provide expertise and support to help services browse the intricate process of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Payroll Tax Refund Through The Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based on elements such as your industry, income, and operations. They can help determine if you fulfill the requirements for the credit and determine the optimum credit amount you can declare.
Documents and Estimation: ERC filing services will help in collecting the needed paperwork, such as payroll records and financial declarations, to support your claim. They will likewise assist compute the credit quantity based upon qualified wages and other certifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can review your past payroll records and financials to recognize possible opportunities for retroactive credits. They can help you modify prior income tax return to declare these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the necessary kinds and documentation on your behalf. This consists of completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have progressed gradually. These companies stay updated with the most recent changes and guarantee that your filings comply with the most existing standards. They can likewise provide continuous support if the internal revenue service demands extra information or performs an audit related to your ERC claim.
It is essential to research study and vet any company offering ERC filing assistance to ensure their trustworthiness and expertise. Search for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who offer ERC filing support.
Remember that while these companies can offer important assistance, it’s always an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective 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 eligible employers, including for-profit organizations, tax-exempt companies, and specific governmental entities. To qualify, employers need to satisfy one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As mentioned earlier, for 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices 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 company’s share of Social Security taxes. The credit quantity amounts to a portion (approximately 70%) of certified earnings paid to employees, consisting of certain health insurance expenditures. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses 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 businesses to declare 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 expanded and boosted, enabling qualified employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for businesses to modify prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Type 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the employer.
It is very important to note that the ERC provisions and eligibility criteria have actually evolved in time. The very best strategy is to consult with a tax expert or check out the official internal revenue service site for the most updated and in-depth details regarding the ERC, consisting of any current legislative changes or updates.
To receive the ERC, a service must satisfy among the following requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts 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 organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, federal government entities and businesses that received a PPP loan may have restrictions on claiming the credit.
The process for declaring the ERC includes completing the required kinds and consisting of the credit on your employment income tax return (generally Form 941). The exact time it requires to process the credit can vary based upon several aspects, consisting of the complexity of your organization and the work of the internal revenue service. It’s advised to consult with a tax expert for assistance particular to your scenario.
There are a number of companies that can aid with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some popular business that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business straight to inquire about their costs and services.
Please keep in mind that the information supplied here is based on basic understanding and may not reflect the most current updates or modifications to the ERC. It is necessary to speak with a tax professional or visit the main internal revenue service website for the most accurate and updated details relating to eligibility, declaring treatments, and readily available support.
Less than 100. If the employer had 100 or less employees typically in 2019, then the credit is based.
on earnings paid to all staff members whether they in fact worked or not. In other words, even if the.
workers worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers usually in 2019, then the credit is.
allowed just for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply cash payments however also a portion of the cost of employer.
provided healthcare. Payroll Tax Refund Through The Employee Retention Credit
Employers can be immediately reimbursed for the credit by minimizing the quantity of payroll taxes they.