Lets talk first about Restaurant Employee Retention Credit :
Our team here what do these guys doing everybody in this room is helping teach individuals about ERC and uh always provide a stunning breakfast and have people truly discover the program we must head to the room where we are able to display some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I mean you know if you simply start to 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 simply I imply think of 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 verified the numbers are confirmed and the check is on the mail in the mail from the internal revenue service 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 gone for sure which’s when they pay so they do not pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they deposit it into their checking account and they can really trust Wonder trust that the process has been finished and how many you believe you’ve processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’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 Wonderful here you’re at my YouTube channel we’re talking about something really crucial today the worker retention credit which most of you have actually never become aware of I definitely had not become aware of it up until very just recently and discovered a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have employees in between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder 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 just phone 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 have actually ended up being yes the Ambassador and paid representative for this I love this program it’s going away soon you got to find out all about it let’s talk worker 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 organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big distinction right there two 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 simply need to ensure we got that point I indicate that’s a big difference a loan versus cash money I like cash cash that’s what we’re talking about alright 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 gorgeous difficult check in the mail where you get actual cash from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that person needed to be a worker so I’m going to make the Assumption 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 owned an organization but it’s based on you having W-2 workers 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 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 correct so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s salary 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 income to an optimum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the turmoil of the pandemic so they wanted 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 as much as five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker 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 six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the huge question is why does no one understand about this due to the fact that appearance when I initially became aware of this when I first met Josh you understand I’ve got great deals of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I do not 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 and that were well should have and we used them carefully to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even called to my political leader good friends Governor Senators they didn’t understand about it I mean that’s how you know that’s how false information is that there’s no info out there then a lot of people informed me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one learn about the staff member retention credit you understand what’s fascinating you’re talking about the banks Kevin due to the fact that in the PPP loan process 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 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 chaos because keep in mind in the original cares act you might 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 not doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not truly she or he’s never done it previously do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this business and bottom line my firm Kevin has been in business considering that 2009 and we have actually been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big business customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
company whose service is completely or partially suspended because of COVID-19 or whose gross invoices.
decline 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 local governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The definition of qualifying wages differs by whether an employer had, typically, basically than.
100 workers in 2019.
Business that focus on ERC filing help usually supply know-how and support to help companies browse the intricate procedure of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Restaurant Employee Retention Credit
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based on aspects such as your industry, income, and operations. They can assist determine if you meet the requirements for the credit and identify the optimum credit amount you can declare.
Paperwork and Calculation: ERC filing services will help in gathering the needed documents, such as payroll records and financial statements, to support your claim. They will likewise help determine the credit quantity based on eligible 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 identify prospective opportunities for retroactive credits. They can assist you change previous income tax return to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the needed kinds and documentation in your place. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have actually evolved in time. These business remain updated with the most recent modifications and ensure that your filings abide by the most existing standards. If the Internal revenue service requests extra information or carries out an audit related to your ERC claim, they can also supply continuous support.
It is necessary to research and veterinarian any business offering ERC filing help to guarantee their reliability and expertise. Look for established companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who use ERC submitting support.
Remember that while these business can provide important assistance, it’s constantly a great concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage organizations to keep and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, companies must satisfy one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately 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 percentage (up to 70%) of qualified incomes paid to workers, including specific health insurance 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, organizations that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they got a PPP loan. Nevertheless, the exact same incomes 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 qualified companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for services to change prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Form 941. The excess can be refunded to the company if the credit surpasses the amount of employment taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have actually evolved in time. The best strategy is to speak with a tax professional or check out the official IRS site for the most updated and in-depth information concerning the ERC, consisting of any recent legislative changes or updates.
To receive the ERC, a business must satisfy one of the following criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and organizations that got a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC involves completing the required kinds and including the credit on your work income tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon a number of factors, including the intricacy of your business and the work of the internal revenue service. It’s advised to talk to a tax professional for guidance specific to your situation.
There are several companies that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some widely known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and call these business straight to inquire about their services and fees.
Please keep in mind that the details supplied here is based upon basic understanding and may not show the most recent updates or modifications to the ERC. It is very important to seek advice from a tax professional or visit the main IRS site for the most precise and up-to-date info concerning eligibility, declaring treatments, and offered help.
Less than 100. If the company had 100 or less employees typically in 2019, then the credit is based.
on salaries paid to all employees whether they really worked or not. In other words, even if the.
staff members 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.
permitted just for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just money payments however also a portion of the expense of company.
supplied health care. Restaurant Employee Retention Credit
Employers can be instantly reimbursed for the credit by minimizing the amount of payroll taxes they.