Lets talk first about Treasury Employee Retention Credit :
Our team here what do these guys doing everybody in this room is assisting teach people about ERC and uh constantly provide a beautiful breakfast and have people actually discover the program we should head to the space where we are able to display a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I mean you know if you simply 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 suggest it’s simply I mean think about the number of actual customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are verified 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 know when you
receive this you understand the check is opted for sure which’s when they pay so they do not pay anything until they really receive the money they don’t 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 really rely on Wonder trust that the procedure has been completed and the number of you think you have actually processed since you started this we have to do with 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 professionals 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 crucial today the employee retention credit which the majority of you have never ever become aware of I certainly hadn’t heard of it until really recently and learned a lot about it since this is probably the most affordable expense of capital for any small company anywhere
anytime if you have workers between five and five hundred so I have actually got the specialist 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 tell all of us about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I love this program it’s disappearing very soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I just need to ensure we got that point I suggest that’s a big difference a loan versus money cash I like cash money that’s what we’re speaking about okay 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 initial cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get real money from the IRS all right so let’s speak about how it works since it sounds like to me if it’s a if it’s worker retention credit that individual had 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 shareholders it’s for employees right you needed to have owned a business however it’s based on you having W-2 employees 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 walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you get back per staff member that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to an optimum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because the turmoil 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 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop 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 because that’s a lot of cash it is now there’s a caveat here the PPP money would need to be minimized 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 on average Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the huge question is why does no one know about this due to the fact that look when I first heard about this when I initially fulfilled Josh you understand I have actually got lots of financial investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make lots of numerous investments in business owners of which lots of suffered through the pandemic when I initially found out about this I called BS I do not believe it because 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 and that were well deserved and we utilized them wisely to survive throughout the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t know about it I indicate that’s how you understand that’s how false information is that there’s no details out there then a lot of people told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one learn about the staff member retention credit you know what’s intriguing you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 huge banks in our nation and they would process procedure 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 since remember in the initial cares act you could refrain from doing 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 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 before 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 done this prior to unless you have an account that entered into this company and bottom line my company Kevin has been in business because 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big big business clients have actually dealt with bottom line to recuperate other federal government programs we’ve 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 government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Because of COVID-19 or whose gross invoices, company whose company is fully or partly suspended.
decline by more than 50%.
Availability.
1. The credit is readily available to all companies no matter size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. When the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries varies by whether a company had, usually, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing help typically offer proficiency and support to assist organizations browse the complex procedure of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Treasury Employee Retention Credit
Eligibility Evaluation: These business will examine your company’s eligibility for the ERC based upon factors such as your market, earnings, and operations. They can help identify if you satisfy the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Calculation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and monetary statements, to support your claim. They will also help determine the credit quantity based upon qualified wages and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your past payroll records and financials to identify possible chances for retroactive credits. They can assist you change prior tax returns to claim these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the needed forms and documents on your behalf. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually evolved over time. These companies stay updated with the most recent modifications and make sure that your filings adhere to the most present standards. If the IRS requests extra information or performs an audit related to your ERC claim, they can also provide ongoing assistance.
It’s important to research study and veterinarian any business using ERC filing assistance to ensure their trustworthiness and proficiency. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who provide ERC filing assistance.
Keep in mind that while these companies can provide valuable support, it’s constantly a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure precise 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 goal of the ERC is to motivate businesses to keep and pay their staff members during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit organizations, tax-exempt organizations, and particular governmental entities. To certify, companies should satisfy one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As pointed out earlier, for 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified 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 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 incomes paid to workers, consisting of particular health plan expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that got an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they got a PPP loan. However, the same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, allowing eligible employers to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for organizations to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Kind 941. The excess can be reimbursed to the company if the credit surpasses the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility requirements have actually developed with time. The best strategy is to speak with a tax expert or visit the official IRS website for the most in-depth and updated information relating to the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, an organization should fulfill among the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. For 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Federal government entities and companies that got a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC includes completing the essential kinds and including the credit on your employment income tax return (typically Kind 941). The exact time it requires to process the credit can differ based on several factors, consisting of the complexity of your service and the workload of the IRS. It’s recommended to speak with a tax expert for assistance specific to your situation.
There are numerous business that can assist with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these companies straight to inquire about their fees and services.
Please note that the details supplied here is based upon basic understanding and may not show the most recent updates or changes to the ERC. It is essential to talk to a tax professional or check out the main internal revenue service website for the most current and accurate info regarding eligibility, claiming treatments, and available support.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on wages paid to all staff members whether they actually worked or not. Simply put, even if the.
workers worked full time and got paid 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 simply cash payments however likewise a part of the cost of employer.
offered health care. Treasury Employee Retention Credit
Payment.
Companies can be immediately compensated for the credit by reducing the quantity of payroll taxes they.