Lets talk first about Plante Moran Employee Retention Credit :
Our group here what do these guys doing everybody in this room is helping teach individuals about ERC and uh constantly provide a stunning breakfast and have individuals truly find out about the program we should head to the room where we have the ability to display a few of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I suggest you know if you simply start to take a look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I imply think about how many real 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 validated 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
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything until they really receive the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they deposit it into their bank account and they can genuinely trust Wonder trust that the process has been finished and how many you think you’ve processed given that you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know 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 among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re talking about something really essential today the staff member retention credit which most of you have actually never heard of I certainly hadn’t become aware of it until really recently and discovered a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have workers between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 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 ended up being yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to discover 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 developed the cares Act and the cares act offered companies 3 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 2 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 make sure we got that point I mean that’s a huge difference a loan versus cash cash I like cash money that’s what we’re talking 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real money from the IRS all right so let’s discuss how it works since it sounds like to me if it’s a if it’s employee retention credit that person needed to be a staff member so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have actually owned a service however it’s based on you having W-2 staff members in America not 10.99. As long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my favorite part cash how much can you get back per employee that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s wage to a maximum of seven thousand per quarter how did that occur um they simply changed the rules in.
2021 versus since the chaos of the pandemic so they wished 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 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around ten thousand dollars an individual 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 IRS so it’s huge obviously now the huge concern is why does no one know about this since appearance when I first became aware of this when I initially satisfied Josh you understand I have actually got great deals of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make lots of many investments in entrepreneurs of which numerous suffered through the pandemic when I first heard about this I called BS I don’t believe it due to the fact that 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 and that were well been worthy of and we used them sensibly to survive during the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t understand about it I indicate 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 also not real so let’s ask Josh why does nobody know about the employee retention credit you know what’s interesting you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it extremely 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 simply process process that’s all um and here there was turmoil because keep in mind in the original cares act you could not do both programs so if you had actually 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 because 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 he or she’s never ever done it previously 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 accountant no your accountant’s never ever done this prior to unless you have an account that entered into this business and bottom line my company Kevin has actually been in business since 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big 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 property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Since of COVID-19 or whose gross invoices, employer whose organization is fully or partially suspended.
decrease by more than 50%.
Availability.
1. The credit is readily available to all employers despite size including tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is totally or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. Once the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether an employer had, typically, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing help normally provide proficiency and support to assist businesses browse the complicated procedure of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Plante Moran Employee Retention Credit
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based on aspects such as your industry, revenue, and operations. They can help identify if you satisfy the requirements for the credit and identify the maximum credit quantity you can claim.
Documentation and Computation: ERC filing services will assist in gathering the required paperwork, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based on eligible earnings and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these companies can examine your past payroll records and financials to identify potential opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Help: Business concentrating on ERC filings will prepare and submit the necessary forms and documents in your place. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have actually developed over time. These companies stay updated with the latest modifications and make sure that your filings adhere to the most existing guidelines. They can also offer continuous assistance if the IRS demands extra info or conducts an audit related to your ERC claim.
It’s important to research study and vet any business using ERC filing assistance to guarantee their trustworthiness and expertise. Look for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax specialists who offer ERC filing support.
Bear in mind that while these business can provide valuable help, it’s always a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate businesses to maintain and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit services, tax-exempt companies, and certain governmental entities. To certify, employers need to meet one of two criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. As pointed out previously, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices 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 (approximately 70%) of qualified salaries paid to workers, consisting of certain health insurance expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, allowing eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for organizations to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Kind 941. The excess can be refunded to the company if the credit surpasses the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have actually evolved in time. The very best strategy is to seek advice from a tax professional or visit the official IRS site for the most updated and in-depth info relating to the ERC, including any recent legislative changes or updates.
To get approved for the ERC, a business needs to satisfy one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a significant decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and services that got a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC involves finishing the required types and including the credit on your employment tax return (typically Kind 941). The exact time it requires to process the credit can differ based on a number of elements, including the intricacy of your business and the work of the internal revenue service. It’s advised to speak with a tax professional for assistance particular to your scenario.
There are several business that can help with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some widely known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and get in touch with these business directly to ask about their services and costs.
Please note that the details offered here is based on basic knowledge and might not reflect the most current updates or changes to the ERC. It is necessary to talk to a tax expert or go to the official internal revenue service site for the most accurate and up-to-date info concerning eligibility, declaring procedures, and available help.
Less than 100. If the employer had 100 or fewer staff members on average in 2019, then the credit is based.
on incomes paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers worked full-time and earned money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
enabled just for incomes paid to workers who did not work during the calendar quarter.
In both cases, “salaries” includes not just cash payments but also a portion of the cost of company.
provided health care. Plante Moran Employee Retention Credit
Payment.
Employers can be right away repaid for the credit by decreasing the quantity of payroll taxes they.