Lets talk first about What Is The Cares Employee Retention Credit :
Our team here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly provide a stunning breakfast and have individuals really discover the program we must head to the room where we are able 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 numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I imply you understand if you simply start to take a 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 imply it’s simply I imply consider 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 validated the numbers are validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
get this you understand the check is gone for sure which’s when they pay so they don’t pay anything until they actually get 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 rely on Wonder trust that the procedure has actually been finished and how many you believe you have actually processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re talking about something really essential today the employee retention credit which the majority of you have actually never ever become aware of I definitely had not become aware of it up until very recently and learned a lot about it since this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have employees in between 5 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 Concepts 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 call up your bank manager and say offer me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference 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 need to make sure we got that point I suggest that’s a huge difference a loan versus cash money I like money money that’s what we’re discussing 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 stunning difficult check in the mail where you get real money from the IRS all right so let’s discuss how it works because it seems like to me if it’s a if it’s employee retention credit that individual needed to be an employee 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 staff members right you needed to have owned an organization however it’s based upon 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 have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six 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 2 and 3 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 money just how much can you get back per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the chaos 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 up to 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caution here the PPP cash would need to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 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 staff members and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big obviously now the huge question is why does nobody understand about this due to the fact that look when I initially became aware of this when I initially fulfilled Josh you know I’ve got great deals of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of lots of investments in business owners of which numerous suffered through the pandemic when I initially became aware of this I called BS I don’t think it since 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 which were well been worthy of and we used them carefully to stay alive throughout the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even called to my politician pals Governor Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals 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 know what’s interesting you’re discussing the banks Kevin because in the PPP loan process the federal government made it extremely clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 procedure process that’s all um and here there was chaos since remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it previously do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this before unless you have an account that went into this service 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 government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate customers have worked with bottom line to recover other federal government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
employer whose service is completely or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all companies despite size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries differs by whether an employer had, usually, more or less than.
100 workers in 2019.
Business that specialize in ERC filing help generally provide knowledge and assistance to help businesses navigate the complicated process of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? What Is The Cares Employee Retention Credit
Eligibility Evaluation: These business will examine your organization’s eligibility for the ERC based upon factors such as your industry, profits, and operations. If you satisfy the requirements for the credit and recognize the maximum credit amount you can declare, they can assist figure out.
Documentation and Estimation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist determine the credit amount based upon eligible salaries and other qualifying costs.
Retroactive Claim Review: 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 amend previous tax returns to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the needed forms and documents on your behalf. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have evolved in time. These business stay upgraded with the latest changes and guarantee that your filings comply with the most existing guidelines. If the Internal revenue service requests additional info or performs an audit related to your ERC claim, they can also offer ongoing assistance.
It’s important to research and vet any company offering ERC filing help to ensure their trustworthiness and proficiency. Look for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax specialists who provide ERC filing assistance.
Bear in mind that while these companies can offer important support, it’s constantly a great concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate organizations 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 offered to eligible employers, including for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, employers must fulfill 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 decline in gross invoices. As mentioned earlier, for 2021, a substantial decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of certified earnings paid to staff members, consisting of specific health plan expenditures. 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: Initially, companies that got an Income Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they got a PPP loan. The same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, enabling qualified employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to change prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment income tax return, usually Kind 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC arrangements and eligibility requirements have evolved gradually. The very best strategy is to seek advice from a tax expert or visit the main IRS website for the most comprehensive and up-to-date information regarding the ERC, including any recent legal changes or updates.
To get approved for the ERC, a company should meet among the following criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. 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 substantial decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and companies that got a PPP loan may have constraints on claiming the credit.
The procedure for claiming the ERC includes completing the necessary types and consisting of the credit on your work tax return (normally Form 941). The exact time it takes to process the credit can differ based on a number of aspects, including the intricacy of your organization and the workload of the IRS. It’s advised to consult with a tax professional for guidance particular to your circumstance.
There are a number of companies that can assist with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll provider. Some widely known business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and get in touch with these companies straight to inquire about their costs and services.
Please note that the info supplied here is based on basic understanding and might not show the most recent updates or modifications to the ERC. It is necessary to seek advice from a tax professional or go to the main IRS site for the most updated and precise information regarding eligibility, declaring procedures, and available assistance.
Less than 100. If the employer had 100 or fewer workers on average in 2019, then the credit is based.
on wages paid to all workers whether they actually worked or not. In other words, even if the.
employees 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 employees on average in 2019.
allowed just for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply money payments however likewise a portion of the cost of employer.
offered healthcare. What Is The Cares Employee Retention Credit
Employers can be instantly repaid for the credit by minimizing the amount of payroll taxes they.