Lets talk first about Advance Employee Retention Credit :
Our team here what do these people doing everyone in this space is assisting teach individuals about ERC and uh always supply a lovely breakfast and have individuals truly find out about the program we should head to the space where we are able to show some of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I suggest you know if you just begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I suggest consider 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 validated the numbers are confirmed 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 gone for sure and that’s when they pay so they do not pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their checking account and they can truly rely on Wonder trust that the process has been completed and the number of you believe you’ve processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing and that’s what you require you require 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 Terrific here you’re at my YouTube channel we’re talking about something truly crucial today the worker retention credit which most of you have actually never ever heard of I certainly hadn’t heard of it until very just recently and discovered a lot about it since this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have workers between five 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 Ideas 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 simply call up your bank supervisor and say provide me a loan it doesn’t 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’ve ended up being yes the Ambassador and paid representative for this I enjoy this program it’s disappearing very soon you got to learn everything 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 came up with the cares Act and the cares act provided businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash cash payroll tax refund alright go on sorry I just have to ensure we got that point I mean that’s a huge difference a loan versus money money I like money cash that’s what we’re discussing alright 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 beautiful difficult check in the mail where you get real cash from the IRS all right so let’s speak about how it works since it seems like to me if it’s a if it’s worker retention credit that person needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for employees right you had to have owned a company however it’s based upon you having W-2 workers 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 six months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s income to a maximum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 after that what happens 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 staff member that is since that’s a lot 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 minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the huge concern is why does nobody understand about this because look when I first found out about this when I initially fulfilled Josh you understand I’ve got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make numerous many investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I do not believe 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 deserved and we utilized them wisely to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my politician good friends Governor Senators they didn’t learn about it I suggest that’s how you know that’s how misinformation is that there’s no details out there then a lot of people told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s fascinating you’re speaking about the banks Kevin because in the PPP loan procedure the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was chaos due to the fact that remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial 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 made it clear to anyone about how to.
do this does your CFO understand how to do this not actually she or he’s never ever 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 accounting professional’s never done this prior to unless you have an account that entered into this company and bottom line my firm Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate customers have dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity 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 developed to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, company whose business is completely or partially suspended.
decline by more than 50%.
1. The credit is offered to all employers despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is totally or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings differs by whether an employer had, usually, basically than.
100 workers in 2019.
Companies that specialize in ERC filing support usually supply knowledge and assistance to help businesses navigate the intricate process of claiming the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Advance Employee Retention Credit
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based on elements such as your market, profits, and operations. They can assist figure out if you satisfy the requirements for the credit and recognize the optimum credit quantity you can declare.
Documents and Estimation: ERC filing services will help in collecting the needed documentation, such as payroll records and financial declarations, to support your claim. They will likewise assist determine the credit quantity based upon qualified earnings and other certifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to identify possible chances for retroactive credits. They can assist you amend previous income tax return to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and send the required kinds and documents on your behalf. This includes completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have actually developed over time. These companies remain updated with the latest changes and ensure that your filings adhere to the most current guidelines. If the Internal revenue service requests extra information or performs an audit associated to your ERC claim, they can likewise supply ongoing support.
It is essential to research study and veterinarian any company using ERC filing help to ensure their reliability and know-how. Look for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax specialists who provide ERC submitting assistance.
Keep in mind that while these companies can supply important help, it’s always a good concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to motivate companies to maintain 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 companies, consisting of for-profit services, tax-exempt companies, and specific governmental entities. To certify, companies must satisfy one of two requirements:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As pointed out earlier, for 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a portion (as much as 70%) of qualified incomes paid to staff members, consisting of specific health insurance costs. 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, businesses that received an Income Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they got a PPP loan. The very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, allowing eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, typically Form 941. The excess can be refunded to the employer if the credit goes beyond the amount of employment taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility criteria have evolved with time. The very best course of action is to seek advice from a tax professional or go to the official internal revenue service website for the most updated and detailed details regarding the ERC, consisting of any recent legal changes or updates.
To qualify for the ERC, a business must satisfy one of the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable 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 right away preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan might have limitations on declaring the credit.
The process for declaring the ERC includes finishing the required kinds and consisting of the credit on your work income tax return (typically Type 941). The exact time it requires to process the credit can differ based on several factors, including the intricacy of your business and the work of the IRS. It’s advised to talk to a tax professional for assistance specific to your scenario.
There are a number of business that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some well-known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business directly to inquire about their charges and services.
Please note that the info provided here is based upon general knowledge and may not reflect the most current updates or changes to the ERC. It’s important to consult with a tax professional or check out the official internal revenue service website for the most up-to-date and precise info concerning eligibility, declaring treatments, and available help.
Less than 100. The credit is based if the company had 100 or less staff members on average in 2019.
on incomes paid to all staff members whether they in fact worked or not. In other words, even if the.
employees worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
enabled only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply cash payments but likewise a part of the cost of company.
provided healthcare. Advance Employee Retention Credit
Employers can be right away compensated for the credit by lowering the amount of payroll taxes they.