Lets talk first about Washington State Employee Retention Credit :
Our team here what do these people doing everybody in this room is assisting teach people about ERC and uh constantly offer a lovely breakfast and have individuals truly discover the program we need to head to the space where we have the ability to display a few of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I indicate you understand if you just begin to 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 indicate it’s just I suggest consider how many actual clients that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are verified 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 opted for sure which’s when they pay so they don’t pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their bank account and they can truly trust Wonder trust that the procedure has actually been ended up and how many you believe you’ve processed because you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing which’s what you require you need experts 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 talking about something really essential today the worker retention credit which most of you have never ever become aware of I certainly had not heard of it till really recently and found out a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers 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 Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just contact 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 tell us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to find out everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody 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.
correct the money money payroll tax refund all right go on sorry I just have to ensure we got that point I imply that’s a huge distinction a loan versus money money I like cash cash 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get actual cash from the internal revenue service all right so let’s talk about how it works because it sounds like to me if it’s a if it’s employee 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 shareholders it’s for staff members right you had to have owned a business but it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 workers 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 very first six 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 four of 2020 and you had quarters one two and three of 2021. fine 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 money how much can you return per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the turmoil of the pandemic so they wanted to even get more to keep those employees 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 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 six 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 cash would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial certainly now the huge concern is why does no one know about this due to the fact that appearance when I initially became aware of this when I initially met Josh you understand I’ve got great deals of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous numerous financial 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 due to the fact that I use 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 sensibly to survive throughout the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even called to my political leader buddies Guv Senators they didn’t learn about it I suggest that’s how you understand that’s how false information is that there’s no information out there then a lot of individuals told 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 staff member retention credit you understand what’s interesting you’re discussing 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was turmoil due to the fact that remember in the original cares act you might 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 because it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly she or he’s never ever done it in the past 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 accountant no your accounting professional’s never done this before unless you have an account that entered into this company and bottom line my firm Kevin has been in business given that 2009 and we’ve been dealing 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 clients have worked with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, employer whose business is totally or partly suspended.
decrease by more than 50%.
1. The credit is offered 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.
companies who take Small company Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes differs by whether an employer had, usually, basically than.
100 employees in 2019.
Business that concentrate on ERC filing help generally offer know-how and assistance to help companies browse the intricate procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Washington State Employee Retention Credit
Eligibility Assessment: These companies will examine your business’s eligibility for the ERC based upon elements such as your market, revenue, and operations. They can help figure out if you satisfy the requirements for the credit and determine the maximum credit quantity you can declare.
Paperwork and Estimation: ERC filing services will assist in collecting the essential documentation, such as payroll records and monetary statements, to support your claim. They will also assist determine the credit amount based on qualified earnings and other certifying expenditures.
Retroactive Claim Review: If you are qualified 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 amend previous income tax return to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and submit the required kinds and documents on your behalf. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have developed gradually. These business stay upgraded with the current modifications and make sure that your filings adhere to the most present standards. If the Internal revenue service demands extra information or conducts an audit related to your ERC claim, they can likewise offer continuous support.
It’s important to research and vet any business using ERC filing assistance to guarantee their reliability and know-how. Look for established firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who provide ERC submitting support.
Keep in mind that while these companies can supply valuable help, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage services to keep and pay their workers during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit services, tax-exempt organizations, and particular governmental entities. To qualify, employers must fulfill one of two requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As discussed previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline 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 (up to 70%) of certified earnings paid to employees, including certain health plan expenses. 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 Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they received a PPP loan. However, the exact same wages 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, permitting qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision provides an opportunity for companies to modify prior-year tax returns and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit exceeds the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually developed gradually. The very best course of action is to seek advice from a tax expert or go to the main IRS website for the most up-to-date and detailed information concerning the ERC, including any current legal changes or updates.
To receive the ERC, an organization must satisfy one of the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a substantial decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC includes completing the necessary forms and including the credit on your work income tax return (normally Type 941). The exact time it requires to process the credit can differ based upon a number of elements, including the complexity of your company and the work of the IRS. It’s suggested to seek advice from a tax expert for assistance particular to your circumstance.
There are several companies that can assist with the process of declaring the ERC. Some popular business that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based on basic knowledge and may not show the most current updates or modifications to the ERC. It is necessary to consult with a tax expert or go to the main internal revenue service website for the most updated and accurate information regarding eligibility, claiming treatments, and readily available support.
Less than 100. If the company had 100 or fewer employees usually in 2019, then the credit is based.
on wages paid to all staff members whether they in fact worked or not. To put it simply, even if the.
employees worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
allowed only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just cash payments but likewise a portion of the cost of company.
offered healthcare. Washington State Employee Retention Credit
Companies can be immediately repaid for the credit by reducing the amount of payroll taxes they.