Lets talk first about Wisconsin Employee Retention Credit :
Our team here what do these men doing everyone in this space is helping teach individuals about ERC and uh always provide a stunning breakfast and have people really learn about the program we should head to the room where we have the ability to display some of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I imply you understand if you simply begin to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I imply think of how many actual customers that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed 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 understand when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything until they really receive the money they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the way they deposit it into their bank account and they can truly trust Wonder trust that the procedure has been finished and how many you believe you have actually processed given that you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing which’s what you require you require professionals 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 speaking about something really essential today the staff member retention credit which the majority of you have never heard of I definitely had not become aware of it up until very just recently and found out a lot about it because this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the professional 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 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 representative for this I like this program it’s disappearing very soon you got to learn all about it let’s talk worker 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 used services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I simply have to ensure we got that point I imply that’s a huge distinction a loan versus cash cash I like cash cash that’s what we’re talking about all right 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 gorgeous hard check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works because it seems like to me if it’s a if it’s staff member retention credit that individual needed 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 needed to have actually owned an organization but it’s based upon you having W-2 staff members 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 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 appropriate so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the staff member’s salary to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus since 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 up to five 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 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state 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 certainly now the big concern is why does no one know about this due to the fact that look when I initially became aware of this when I first satisfied Josh you understand I’ve got great deals of investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous many financial investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I do not think it since I utilize the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them sensibly to stay alive throughout the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even called to my politician buddies Guv Senators they didn’t learn about it I mean that’s how you understand that’s how false information is that there’s no information out there then a lot of people informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody know about the employee retention credit you understand what’s fascinating you’re speaking about the banks Kevin because in the PPP loan process 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 country and they would process process 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 mayhem since remember in the original cares act you might refrain from doing 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 refraining from doing ERC since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO know how to do this not really she or he’s never ever done it before 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 accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this company and bottom line my company Kevin has been in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our big big business customers have actually worked with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Since of COVID-19 or whose gross invoices, company whose organization is completely or partly suspended.
decrease by more than 50%.
1. The credit is readily available to all companies regardless of size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service 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 equivalent quarter in 2019. Once the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying earnings varies by whether an employer had, typically, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing assistance generally offer knowledge and support to help businesses browse the complicated procedure of claiming the credit. They can provide various services, including:.
How is the employee retention credit calculated? Wisconsin Employee Retention Credit
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based on aspects such as your industry, income, and operations. They can help determine if you fulfill the requirements for the credit and determine the maximum credit quantity you can claim.
Documents and Calculation: ERC filing services will assist in gathering the required documents, such as payroll records and monetary statements, to support your claim. They will also assist calculate the credit amount based on qualified salaries and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the essential kinds and documents on your behalf. This includes completing Kind 941 or any other required tax return.
Compliance and Updates: ERC regulations and guidance have progressed in time. These companies remain upgraded with the current modifications and ensure that your filings comply with the most current guidelines. They can likewise supply ongoing support if the internal revenue service requests additional information or carries out an audit related to your ERC claim.
It is very important to research study and vet any company providing ERC filing assistance to ensure their credibility and know-how. Search for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax professionals who use ERC submitting support.
Remember that while these companies can supply important help, it’s constantly a great idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and ensure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage organizations to keep and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, employers must satisfy one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified 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 instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (as much as 70%) of certified wages paid to staff members, consisting of certain health insurance expenditures. The optimum 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, services that got an Income Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they received a PPP loan. The exact same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, enabling qualified employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, normally Form 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of employment taxes owed.
It is necessary to note that the ERC provisions and eligibility requirements have actually developed over time. The best course of action is to talk to a tax professional or go to the main IRS website for the most detailed and current information concerning the ERC, consisting of any current legal changes or updates.
To get approved for the ERC, an organization must meet among the following 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. For 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable 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.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, federal government entities and companies that received a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC involves completing the required forms and including the credit on your work tax return (usually Form 941). The exact time it requires to process the credit can vary based upon a number of elements, including the complexity of your company and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for assistance specific to your circumstance.
There are several companies that can assist with the process of claiming the ERC. Some well-known companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based on general knowledge and may not reflect the most current updates or modifications to the ERC. It is very important to consult with a tax professional or go to the official internal revenue service website for the most accurate and updated details regarding eligibility, claiming treatments, and available help.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on earnings paid to all staff members 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. If the company had more than 100 employees typically in 2019, then the credit is.
permitted only for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply cash payments but likewise a portion of the cost of company.
supplied healthcare. Wisconsin Employee Retention Credit
Employers can be instantly repaid for the credit by reducing the quantity of payroll taxes they.