Lets talk first about What Is Innovation Refund :
Our group here what do these men doing everyone in this room is assisting teach individuals about ERC and uh constantly provide a beautiful breakfast and have individuals truly discover the program we need to head to the room where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to clients verifying that the check is on the method I indicate you know if you just start 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 just I imply think of how many real customers that went through the program yeah this is the very end this is the party at the end when the check is validated 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’re able to track it you know when you
get this you know the check is opted for sure which’s when they pay so they do not pay anything until they actually get the cash they do not pay bottom line Wonder trust anything until this letter is verified the check is on the way they transfer it into their bank account and they can really rely on Wonder trust that the process has actually been finished and the number of you believe you’ve processed considering that you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you require you need specialists 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 Terrific here you’re at my YouTube channel we’re talking about something truly important today the employee retention credit which most of you have never ever heard of I certainly hadn’t become aware of it up until extremely just recently and discovered a lot about it due to the fact that this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have employees in between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Ideas 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 supervisor and state 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 have actually ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away 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 start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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.
correct the cash money payroll tax refund okay go on sorry I simply have to make sure we got that point I indicate that’s a huge distinction a loan versus cash cash I like cash cash that’s what we’re speaking 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 initial cares Act is the ERC and yes Kevin it is a stunning hard 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 staff member retention credit that individual had to be a staff member so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have actually owned a service but it’s based upon you having W-2 staff members 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 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 stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s salary to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to a maximum of seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus because 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 approximately five thousand Max and then what occurs 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 staff member that is since that’s a lot of money 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 decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the huge concern is why does nobody know about this since appearance when I first became aware of this when I initially satisfied Josh you understand I have actually got great deals of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make numerous lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I do not believe it because I use the PPP we went through the cash 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 should have and we utilized them carefully to stay alive during the pandemic so when I heard about this I said nah it can’t be true however when I dug around I even contacted us to my politician friends Guv Senators they didn’t learn about it I suggest that’s how you understand that’s how misinformation is that there’s no info out there then a lot of people told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one know about the worker retention credit you understand what’s intriguing you’re speaking about the banks Kevin since in the PPP loan process 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 country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was turmoil because remember in the initial cares act you might refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not truly 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 a few of them are doing it as a payroll company your accountant no your accountant’s never done this before unless you have an account that went into this company 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 federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, employer whose organization is fully or partially suspended.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is completely 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 qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings differs by whether a company had, typically, basically than.
100 employees in 2019.
Business that specialize in ERC filing support generally offer proficiency and assistance to help organizations browse the complex procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? What Is Innovation Refund
Eligibility Assessment: These business will assess your organization’s eligibility for the ERC based on elements such as your industry, earnings, and operations. If you meet the requirements for the credit and identify the maximum credit amount you can claim, they can assist determine.
Documentation and Calculation: ERC filing services will help in gathering the needed documentation, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit amount based on qualified salaries and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can examine your past payroll records and financials to identify potential opportunities for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the needed forms and paperwork in your place. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have developed with time. These business remain upgraded with the latest modifications and ensure that your filings comply with the most current standards. They can also provide continuous support if the IRS requests additional information or carries out an audit related to your ERC claim.
It’s important to research and veterinarian any business providing ERC filing assistance to guarantee their trustworthiness and proficiency. Search for established firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who use 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 help you make informed choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented 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 employees throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, companies must satisfy one of two criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As pointed out previously, 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 considerable decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices 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 percentage (approximately 70%) of certified earnings paid to workers, consisting of certain health plan costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they got a PPP loan. Nevertheless, the very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, enabling eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for organizations to amend prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, generally Kind 941. The excess can be reimbursed to the employer if the credit goes beyond the amount of work taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have actually progressed in time. The best strategy is to speak with a tax expert or go to the main IRS site for the most in-depth and updated information regarding the ERC, including any current legislative modifications or updates.
To get approved for the ERC, a business must meet one of the following criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. 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 substantial decline is specified as a 20% decrease 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. Federal government entities and businesses that received a PPP loan may have limitations on declaring the credit.
The process for declaring the ERC involves completing the needed forms and including the credit on your work tax return (generally Kind 941). The exact time it requires to process the credit can vary based on numerous elements, including the complexity of your organization and the work of the IRS. It’s suggested to talk to a tax expert for assistance particular to your circumstance.
There are a number of business that can help with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and get in touch with these companies straight to ask about their services and charges.
Please note that the information provided here is based upon basic knowledge and may not reflect the most recent updates or modifications to the ERC. It is necessary to speak with a tax professional or go to the official internal revenue service website for the most current and accurate info concerning eligibility, claiming treatments, and readily available help.
Less than 100. If the company had 100 or less workers usually in 2019, then the credit is based.
on wages paid to all employees whether they actually worked or not. Simply put, 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 company had more than 100 workers on average in 2019.
allowed only for wages paid to employees who did not work during the calendar quarter.
In both cases, “wages” consists of not simply cash payments but also a portion of the cost of employer.
supplied health care. What Is Innovation Refund
Companies can be immediately repaid for the credit by reducing the quantity of payroll taxes they.