Lets talk first about South Carolina Employee Retention Credit :
Our team here what do these guys doing everyone in this space is helping teach individuals about ERC and uh constantly provide a stunning breakfast and have people truly learn more about the program we ought to head to the room where we are able to show some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I mean you understand if you just begin to take a look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I imply consider 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 internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
receive this you know the check is chosen sure which’s when they pay so they do not pay anything till they really get the money they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they deposit it into their checking account and they can genuinely trust Wonder trust that the procedure has actually been finished and the number of you believe you have actually processed given that you began 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 need you need 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 Wonderful here you’re at my YouTube channel we’re discussing something truly important today the staff member retention credit which the majority of you have never ever heard of I definitely hadn’t heard of it until really just recently and discovered a lot about it since this is probably the most affordable cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 phone your bank manager and say offer 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 representative for this I love this program it’s going away very soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used businesses 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 distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash money payroll tax refund all right go on sorry I simply have to make certain we got that point I mean that’s a huge difference a loan versus money cash I like cash cash 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 lovely hard check in the mail where you get actual cash from the internal revenue service all right so let’s discuss how it works since it sounds like to me if it’s a if it’s staff member retention credit that individual had to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you had to have owned a service however it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 workers 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 have to be on payroll for the very first six months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s measured 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 specific Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus since the turmoil 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 as much as five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with 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 because that’s a great deal of cash it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s say hypothetically you owned a restaurant 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 IRS so it’s big certainly now the huge question is why does nobody know about this due to the fact that look when I initially became aware of this when I initially satisfied Josh you understand I’ve got great deals of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make numerous lots of investments in business owners of which many suffered through the pandemic when I first heard about this I called BS I do not think it due to the fact that I utilize the PPP we went through the money center Banks to get it it was extremely 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 stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even called to my politician friends Guv Senators they didn’t learn about it I imply that’s how you understand that’s how misinformation is that there’s no information out there then a lot of individuals informed 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 nobody learn about the employee retention credit you know what’s fascinating you’re talking about the banks Kevin since 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 simply procedure process that’s all um and here there was mayhem due to the fact that remember in the original cares act you might refrain from doing both programs so if you had done PPP you might not do ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC since 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 understand how to do this not actually she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this company and bottom line my company Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big huge 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 chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose business is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all employers no matter size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies 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 employer’s organization is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries differs by whether an employer had, typically, more or less than.
100 employees in 2019.
Business that concentrate on ERC filing help typically offer competence and support to assist services browse the complicated procedure of claiming the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? South Carolina Employee Retention Credit
Eligibility Assessment: These business will evaluate your company’s eligibility for the ERC based on factors such as your industry, earnings, and operations. They can assist figure out if you satisfy the requirements for the credit and recognize the maximum credit quantity you can claim.
Documents and Estimation: ERC filing services will help in gathering the required documentation, such as payroll records and monetary declarations, to support your claim. They will likewise help determine the credit amount based on qualified wages and other qualifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these companies can review your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can help you modify prior tax returns to claim these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the needed kinds and documentation in your place. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved with time. These business remain upgraded with the current changes and ensure that your filings comply with the most existing standards. They can likewise supply continuous support if the internal revenue service requests additional information or performs an audit related to your ERC claim.
It is necessary to research and vet any business using ERC filing help to ensure their trustworthiness and know-how. Try to find recognized firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who offer ERC submitting support.
Bear in mind that while these companies can offer important help, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate businesses to maintain and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit services, tax-exempt organizations, and certain governmental entities. To qualify, companies should meet one of two criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As pointed out previously, for 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease 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.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of certified incomes paid to staff members, consisting of specific health insurance costs. The optimum 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, businesses that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. The same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, enabling qualified employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for organizations to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, generally Form 941. If the credit goes beyond the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is necessary to note that the ERC arrangements and eligibility criteria have evolved gradually. The very best course of action is to seek advice from a tax expert or check out the official IRS site for the most current and comprehensive information relating to the ERC, including any recent legislative changes or updates.
To get approved for the ERC, a service should meet one of the following criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a significant decrease is defined as a 20% decline in gross receipts 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 same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and services that got a PPP loan may have restrictions on declaring the credit.
The procedure for declaring the ERC involves finishing the essential types and consisting of the credit on your employment tax return (generally Type 941). The exact time it takes to process the credit can differ based upon numerous aspects, consisting of the complexity of your organization and the workload of the internal revenue service. It’s suggested to seek advice from a tax expert for guidance 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 company. Some well-known companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and get in touch with these companies straight to ask about their charges and services.
Please note that the info offered here is based upon general knowledge and might not reflect the most current updates or modifications to the ERC. It is very important to consult with a tax professional or check out the official internal revenue service site for the most current and precise details regarding eligibility, claiming procedures, and readily available assistance.
Less than 100. If the company had 100 or less employees usually in 2019, then the credit is based.
on wages paid to all employees whether they really worked or not. To put it simply, even if the.
workers worked full time and got paid 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.
allowed just for incomes paid to employees 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.
offered health care. South Carolina Employee Retention Credit
Employers can be right away reimbursed for the credit by decreasing the amount of payroll taxes they.