Lets talk first about Are Tips Included In The Employee Retention Credit :
Our group 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 discover the program we must head to the room where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I suggest you know if you simply 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 indicate it’s just I indicate think of the number of actual clients 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 validated and the check is on the mail in the mail from the internal revenue service 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 do not pay anything up until they actually get the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their checking account and they can really rely on Wonder trust that the procedure has been finished and the number of you think you have actually processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need 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 Wonderful here you’re at my YouTube channel we’re talking about something actually essential today the employee retention credit which the majority of you have never ever become aware of I certainly had not become aware of it up until really recently and discovered a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator 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 state give me a loan it doesn’t 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’ve become yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered organizations three 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 distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I just have to make certain we got that point I suggest 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 original cares Act is the ERC and yes Kevin it is a gorgeous difficult check in the mail where you get real cash from the internal revenue service all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual had to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have owned an organization but it’s based upon you having W-2 employees in America not 10.99. so 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 need 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 walk 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. all right so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part cash how much can you return per staff member 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 salary to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the turmoil of the pandemic so they wished 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 as much as five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you create twenty 6 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 great deal of cash it is now there’s a caveat here the PPP money would have to be decreased from the twenty six 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 ten thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge certainly now the big concern is why does nobody learn about this since look when I first became aware of this when I initially met Josh you understand I have actually got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make many lots of investments in entrepreneurs of which numerous suffered through the pandemic when I initially found out about this I called BS I don’t believe it since I utilize the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well should have and we utilized them carefully to stay alive during the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my political leader buddies Governor Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation is that there’s no details 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 nobody understand about the staff member retention credit you understand what’s fascinating you’re discussing the banks Kevin due to the fact that in the PPP loan process 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 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 simply process process that’s all um and here there was chaos because keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the original program and when they changed 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 anybody about how to.
do this does your CFO understand how to do this not actually he or she’s never done it previously 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 business your accountant no your accounting professional’s never ever done this before unless you have an account that went into this business and bottom line my firm Kevin has been in business because 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big big business clients have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, company whose company is fully or partially suspended.
decrease by more than 50%.
1. The credit is available to all employers despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether a company had, typically, basically than.
100 workers in 2019.
Business that concentrate on ERC filing help generally supply competence and assistance to help services browse the complicated procedure of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Are Tips Included In The Employee Retention Credit
Eligibility Assessment: These companies will examine your organization’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you meet the requirements for the credit and identify the optimum credit quantity you can claim, they can assist figure out.
Documents and Estimation: ERC filing services will help in collecting the necessary paperwork, such as payroll records and financial statements, to support your claim. They will also help determine the credit amount based upon qualified wages and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to determine possible chances for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the essential types and documents in your place. This consists of finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved with time. These companies stay upgraded with the most recent changes and ensure that your filings abide by the most existing guidelines. They can also provide continuous support if the internal revenue service demands extra information or conducts an audit related to your ERC claim.
It’s important to research and vet any business offering ERC filing help to guarantee their trustworthiness and know-how. Try to find recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax specialists who use ERC filing assistance.
Bear in mind that while these business can provide important support, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to motivate services to retain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers should fulfill one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross invoices. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline 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 quantity amounts to a portion (as much as 70%) of qualified incomes paid to employees, consisting of certain health plan expenses. 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, businesses that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. The same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, allowing qualified employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for businesses to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work tax returns, normally Type 941. The excess can be reimbursed to the company if the credit surpasses the amount of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have actually developed with time. The very best strategy is to consult with a tax expert or check out the official internal revenue service site for the most detailed and current info relating to the ERC, including any current legal modifications or updates.
To receive the ERC, a service must satisfy one of the following requirements:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt companies, but there are some exceptions. For example, federal government entities and organizations that got a PPP loan might have restrictions on claiming the credit.
The procedure for declaring the ERC involves finishing the needed types and including the credit on your employment tax return (usually Form 941). The exact time it requires to process the credit can vary based on a number of aspects, including the intricacy of your service and the workload of the IRS. It’s recommended to seek advice from a tax professional for guidance specific to your scenario.
There are a number of business that can assist with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll company. Some well-known business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and get in touch with these companies straight to inquire about their services and costs.
Please keep in mind that the details supplied here is based upon basic understanding and may not show the most recent updates or modifications to the ERC. It’s important to talk to a tax expert or go to the main IRS website for the most precise and up-to-date information regarding eligibility, declaring treatments, and readily available help.
Less than 100. If the employer had 100 or less employees typically in 2019, then the credit is based.
on incomes paid to all employees whether they actually worked or not. In other words, even if the.
staff members worked full time and made money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers usually in 2019, then the credit is.
permitted only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply money payments however also a portion of the expense of employer.
supplied healthcare. Are Tips Included In The Employee Retention Credit
Employers can be instantly repaid for the credit by reducing the amount of payroll taxes they.