Lets talk first about Will The Employee Retention Credit Be Extended :
Our team here what do these people doing everyone in this space is assisting teach individuals about ERC and uh always provide a beautiful breakfast and have people really find out about the program we should head to the space where we are able to show a few of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I indicate you understand if you just begin to take a look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I suggest think about how many real clients that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are validated and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you know when you
receive this you know the check is opted for sure and that’s when they pay so they don’t pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they transfer it into their checking account and they can genuinely rely on Wonder trust that the procedure has actually been finished and how many you think you’ve processed given that you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you require you require specialists 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 discussing something actually essential today the employee retention credit which the majority of you have never become aware of I certainly hadn’t heard of it up until really recently and discovered a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers in between 5 and five hundred so I’ve got the expert 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 challenging this isn’t like PPP we simply contact 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 us all about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing very soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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 fine go on sorry I just need to ensure we got that point I imply that’s a huge distinction a loan versus money money I like money 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 tough check in the mail where you get actual cash from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s employee retention credit that person had to be an employee so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have owned a company however it’s based on 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six months of 2021 on the W-2 correct so there were 6 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 two and 3 of 2021. okay so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s salary to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the chaos 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 as much as 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 worker that is because that’s a lot of money it is now there’s a caveat here the PPP money would have to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP cash 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 obviously now the huge concern is why does no one know about this due to the fact that look when I first heard about this when I initially satisfied Josh you understand I’ve got lots of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make lots of numerous financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it because I utilize 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 which were well should have and we utilized them wisely to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even contacted us to my political leader pals Governor Senators they didn’t learn about it I indicate that’s how you know that’s how false information is that there’s no information out there then a bunch of individuals informed me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody learn about the worker retention credit you understand what’s intriguing you’re speaking about the banks Kevin because 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 process 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 since keep in mind in the original cares act you could not do both programs so if you had actually done PPP you might not do 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 federal government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not truly she or he’s never done it in the past 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 organization and bottom line my firm Kevin has actually been in business because 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients have actually dealt with bottom line to recover other federal government programs we have actually 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 government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, employer whose service is completely or partly suspended.
decrease by more than 50%.
1. The credit is readily available to all companies regardless of size including tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
employer’s gross receipts exceed 80% of a similar 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 qualifying earnings paid up to $10,000 in overall.
It works for incomes 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 employees in 2019.
Companies that concentrate on ERC filing help normally offer knowledge and support to help companies browse the complex process of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Will The Employee Retention Credit Be Extended
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon elements such as your market, income, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity 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 statements, to support your claim. They will likewise help compute the credit quantity based on qualified wages and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you modify previous income tax return to claim these refunds.
Filing Support: Business focusing on ERC filings will prepare and submit the required forms and documentation on your behalf. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have developed over time. These business remain updated with the current modifications and make sure that your filings adhere to the most current standards. They can also offer continuous support if the IRS demands extra information or carries out an audit related to your ERC claim.
It’s important to research study and veterinarian any company offering ERC filing help to ensure their reliability and knowledge. Search for recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who offer ERC filing assistance.
Remember that while these companies can supply important assistance, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified decisions and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to motivate services to keep and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit services, tax-exempt organizations, and specific governmental entities. To qualify, employers should fulfill one of two requirements:.
The business operations were fully or partially 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 considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline 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 amount is equal to a portion (as much as 70%) of qualified incomes paid to staff members, consisting of particular health insurance expenditures. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. However, the same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, allowing eligible companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to amend prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Form 941. If the credit exceeds the quantity of employment taxes owed, the excess can be refunded to the employer.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually evolved gradually. The very best course of action is to speak with a tax professional or check out the main internal revenue service website for the most comprehensive and up-to-date details regarding the ERC, including any current legal changes or updates.
To qualify for the ERC, a business should fulfill among the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a substantial decline is specified as a 20% decline in gross invoices 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 same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt companies, but there are some exceptions. For example, federal government entities and organizations that received a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes finishing the needed forms and including the credit on your employment income tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon a number of aspects, consisting of the intricacy of your business and the work of the IRS. It’s advised to talk to a tax expert for assistance particular to your scenario.
There are numerous companies that can help with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some well-known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these companies directly to ask about their services and charges.
Please keep in mind that the info provided here is based on basic knowledge and might not reflect the most current updates or modifications to the ERC. It’s important to consult with a tax expert or visit the main internal revenue service website for the most accurate and current info concerning eligibility, claiming treatments, and offered assistance.
Less than 100. The credit is based if the company had 100 or less staff members on average in 2019.
on earnings paid to all employees whether they actually worked or not. Simply put, even if the.
employees worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 workers on average in 2019, then the credit is.
enabled just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just cash payments however also a part of the cost of employer.
supplied healthcare. Will The Employee Retention Credit Be Extended
Employers can be immediately reimbursed for the credit by minimizing the quantity of payroll taxes they.