Lets talk first about Can I Still Apply For The Employee Retention Credit :
Our group here what do these guys doing everybody in this space is helping teach people about ERC and uh always offer a lovely breakfast and have people actually discover the program we must head to the space where we have the ability to display some 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 literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I suggest you understand if you simply begin 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 suggest it’s just I suggest consider the number of actual clients that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you know when you
receive this you know the check is opted for sure which’s when they pay so they do not pay anything until they in fact get the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they transfer it into their bank account and they can truly trust Wonder trust that the procedure has been completed and the number of you believe you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’s what you require you need 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 talking about something really essential today the staff member retention credit which the majority of you have actually never become aware of I definitely had not heard of it until very recently and learned a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I’ve got the professional 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 not easy this isn’t like PPP we simply call up your bank supervisor and state 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 have actually 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 simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash money payroll tax refund fine go on sorry I just need to make certain we got that point I indicate that’s a huge distinction a loan versus cash money I like money cash 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 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 talk about how it works because it sounds like to me if it’s a if it’s staff member retention credit that person had to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have owned a service but it’s based upon you having W-2 workers 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 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 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk 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 need to be on the W-2 during that period now let’s talk my favorite part cash just how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum of seven thousand per quarter how did that take place um they simply changed 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 approximately five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 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 cash it is now there’s a caveat here the PPP money would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s say 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 obviously now the huge question is why does no one understand about this because appearance when I initially became aware of this when I first satisfied Josh you know I’ve got lots of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I first found out about this I called BS I do not think it due to the fact that I utilize the PPP we went through the money center Banks to get it it was extremely 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 throughout the pandemic so when I became aware of this I said nah it can’t hold true however when I dug around I even called to my politician pals Guv 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 lot of individuals informed me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does no one learn about the worker retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it really 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure 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 might refrain from doing ERC in the initial 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 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 done it previously do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accountant’s never done this before unless you have an account that went into this company and bottom line my firm Kevin has actually stayed in business since 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate customers have worked with bottom line to recover other government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, employer whose organization is fully or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is fully or partially 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. When the.
employer’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The meaning of certifying salaries varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing support usually provide competence and support to help organizations navigate the complicated process of declaring the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Can I Still Apply For The Employee Retention Credit
Eligibility Assessment: These companies will evaluate your organization’s eligibility for the ERC based on elements such as your market, income, and operations. If you meet the requirements for the credit and recognize the optimum credit amount you can declare, they can assist figure out.
Documentation and Estimation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary statements, to support your claim. They will likewise help compute the credit quantity based on qualified incomes and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can review your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the necessary forms and paperwork in your place. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved gradually. These companies stay updated with the current changes and guarantee that your filings adhere to the most present guidelines. If the Internal revenue service requests extra information or performs an audit related to your ERC claim, they can also supply ongoing support.
It is very important to research study and veterinarian any company providing ERC filing help to guarantee their trustworthiness and expertise. Try to find established firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who offer ERC filing assistance.
Bear in mind that while these companies can supply valuable assistance, it’s always an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure 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 companies to retain and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, companies should fulfill one of two requirements:.
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. As discussed previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of certified wages paid to workers, consisting of certain 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: At first, organizations that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. The very same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, enabling eligible employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit surpasses the amount of work taxes owed, the excess can be reimbursed to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have developed with time. The best course of action is to speak with a tax professional or go to the official IRS website for the most detailed and up-to-date info relating to the ERC, consisting of any current legal changes or updates.
To receive the ERC, an organization needs to fulfill among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt companies, but there are some exceptions. Federal government entities and organizations that received a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC includes completing the needed forms and including the credit on your work income tax return (typically Kind 941). The exact time it requires to process the credit can vary based upon numerous elements, consisting of the complexity of your organization and the workload of the internal revenue service. It’s recommended to talk to a tax expert for assistance particular to your circumstance.
There are numerous business that can help with the procedure of claiming the ERC. Some well-known companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information supplied here is based upon general knowledge and might not reflect the most current updates or changes to the ERC. It is essential to consult with a tax professional or visit the main internal revenue service site for the most precise and current information concerning eligibility, claiming procedures, and available assistance.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on incomes paid to all employees whether they actually worked or not. To put it simply, even if the.
staff members 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 workers on average in 2019.
allowed only for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just cash payments but also a portion of the cost of company.
provided health care. Can I Still Apply For The Employee Retention Credit
Employers can be immediately reimbursed for the credit by reducing the quantity of payroll taxes they.