Lets talk first about What Employee Retention Credit :
Our team here what do these guys doing everyone in this space is helping teach individuals about ERC and uh constantly offer a lovely breakfast and have individuals really discover the program we ought to head to the space where we have the ability to display some 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 actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the method I suggest you understand if you just start to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I imply consider the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you know when you
get this you understand the check is opted for sure which’s when they pay so they don’t pay anything till they really get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their bank account and they can genuinely rely on Wonder trust that the process has been ended up and the number of you think you have actually processed considering that 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 experts 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 speaking about something actually important today the worker retention credit which most of you have never ever heard of I definitely had not become aware of it until extremely just recently and found out a lot about it due to the fact that this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 call your bank manager and say provide 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s going away very soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money money payroll tax refund okay go on sorry I just have to make certain we got that point I suggest that’s a big distinction a loan versus money money I like money cash that’s what we’re discussing 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 gorgeous hard check in the mail where you get actual money from the IRS all right so let’s talk about how it works since it seems like to me if it’s a if it’s worker retention credit that individual had to be a worker 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 had to have owned a company but it’s based on you having W-2 employees 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right 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 six quarters so the estimation in 2020 to be precise Kevin is 50 of the employee’s salary to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wished 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 5 thousand Max and then 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 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 caution here the PPP money would need to be decreased from the twenty six 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 money somewhere around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city 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 IRS so it’s huge obviously now the huge question is why does nobody understand about this because appearance when I first became aware of this when I first fulfilled Josh you understand I have actually got lots of financial investments in great deals of business I’m a major advocate for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of this I called BS I do not think it since I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we utilized them carefully to stay alive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even called to my political leader good friends Governor Senators they didn’t know about it I mean that’s how you know that’s how misinformation 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 likewise not real so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s interesting you’re discussing the banks Kevin since in the PPP loan procedure the federal government made it really clear that if you desired 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 due to the fact that keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you could refrain from doing 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 federal government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not actually he or she’s never done it in the past 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 accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this company and bottom line my company Kevin has stayed in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge 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 home real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
Because of COVID-19 or whose gross invoices, company whose business is fully or partly suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company 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 company’s gross invoices are below 50% of the similar quarter in 2019. When the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying earnings differs by whether an employer had, on average, basically than.
100 employees in 2019.
Business that focus on ERC filing assistance generally offer know-how and assistance to assist services navigate the complex process of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? What Employee Retention Credit
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based upon elements such as your industry, profits, and operations. They can assist determine if you fulfill the requirements for the credit and recognize the maximum credit quantity you can claim.
Paperwork and Computation: ERC filing services will assist in gathering the needed documents, such as payroll records and financial declarations, to support your claim. They will also help compute the credit quantity based upon qualified wages and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can evaluate your previous payroll records and financials to identify possible opportunities for retroactive credits. They can assist you change previous income tax return to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and submit the essential forms and documentation in your place. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have progressed gradually. These companies stay upgraded with the current changes and guarantee that your filings adhere to the most present guidelines. They can likewise provide ongoing support if the IRS requests extra details or performs an audit related to your ERC claim.
It’s important to research and vet any company using ERC filing help to ensure their trustworthiness and competence. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who use ERC filing assistance.
Remember that while these companies can offer valuable support, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage businesses to maintain and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit organizations, tax-exempt organizations, and particular governmental entities. To qualify, employers must fulfill one of two requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As discussed earlier, for 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (up to 70%) of certified incomes paid to workers, including particular health insurance expenses. 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: At first, businesses that got an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. The same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, allowing qualified companies to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit surpasses the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It’s important to note that the ERC arrangements and eligibility requirements have progressed in time. The best course of action is to talk to a tax professional or go to the main IRS website for the most current and comprehensive information concerning the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, an organization must satisfy one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined 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 instantly preceding quarter.
The ERC is available to services of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and organizations that received a PPP loan may have constraints on claiming the credit.
The procedure for claiming the ERC involves finishing the necessary kinds and consisting of the credit on your work income tax return (typically Form 941). The exact time it requires to process the credit can vary based upon a number of factors, consisting of the intricacy of your company and the workload of the internal revenue service. It’s advised to talk to a tax expert for guidance specific to your scenario.
There are a number of business that can help with the process of declaring the ERC. Some widely known companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based upon basic understanding and may not reflect the most current updates or changes to the ERC. It is very important to speak with a tax professional or check out the official internal revenue service site for the most accurate and updated details relating to eligibility, claiming procedures, and readily available support.
Less than 100. If the employer had 100 or less staff members usually in 2019, then the credit is based.
on salaries paid to all staff members whether they really worked or not. In other words, even if the.
staff members worked full-time and got paid for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 employees on average in 2019, then the credit is.
allowed just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply money payments however likewise a portion of the expense of company.
offered health care. What Employee Retention Credit
Companies can be right away reimbursed for the credit by reducing the quantity of payroll taxes they.