Lets talk first about Can I Take The Employee Retention Credit And Ppp :
Our group here what do these people doing everybody in this space is helping teach people about ERC and uh constantly provide a stunning breakfast and have individuals truly find out about the program we need to head to the space where we are able to display a few 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 millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I suggest you understand if you just begin to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I imply 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 confirmed the numbers are verified 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 gone for sure and that’s when they pay so they do not pay anything till they really get the money they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they deposit it into their savings account and they can genuinely trust Wonder trust that the procedure has been ended up and the number of you think you’ve processed considering that 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 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re talking about something really crucial today the worker retention credit which the majority of you have never ever heard of I certainly had not heard of it up until really just recently and found out a lot about it due to the fact that this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have workers in 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 Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call 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 us all about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I love this program it’s going away very soon you got to discover 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 organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund all right go on sorry I simply need to ensure we got that point I indicate that’s a big distinction a loan versus money money I like cash cash that’s what we’re talking 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 tough check in the mail where you get actual cash from the internal revenue service 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 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 needed to have actually owned an organization however it’s based upon you having W-2 employees 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 first six months of 2021 on the W-2 proper 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 three of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part cash how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to a maximum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus because the mayhem 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 as much as 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of money it is now there’s a caution here the PPP cash would need to be decreased 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 on average Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s substantial obviously now the big question is why does nobody understand about this due to the fact that look when I initially heard about this when I first fulfilled Josh you understand I’ve got lots of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make lots of lots of investments in business owners of which lots of 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 extremely easy to do we had our CEOs call the banks they got their loans and that were well should have and we used them sensibly to survive during the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even called to my political leader 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 individuals informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody learn about the employee 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 really clear that if you wanted 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 just process process that’s all um and here there was turmoil due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had actually done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it before do the banks do it nope the banks don’t 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 before unless you have an account that went into this service and bottom line my firm Kevin has actually been in business since 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business clients have actually dealt with bottom line to recuperate 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 employee retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Because of COVID-19 or whose gross receipts, employer whose organization is fully or partly suspended.
decline by more than 50%.
1. The credit is offered to all companies regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation 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 before December 31, 2020.
The meaning of qualifying wages varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing help usually provide know-how and support to help companies browse the complicated procedure of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Can I Take The Employee Retention Credit And Ppp
Eligibility Assessment: These business will examine your service’s eligibility for the ERC based on factors such as your market, revenue, and operations. They can help determine if you meet the requirements for the credit and recognize the maximum credit amount you can declare.
Paperwork and Calculation: ERC filing services will assist in gathering the required documentation, such as payroll records and financial declarations, to support your claim. They will likewise assist compute the credit amount based upon eligible incomes and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can examine your past payroll records and financials to identify potential chances for retroactive credits. They can assist you modify prior income tax return to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and submit the required kinds and documents on your behalf. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have actually developed with time. These business stay updated with the current changes and guarantee that your filings comply with the most current standards. They can also offer continuous support if the internal revenue service demands additional details or carries out an audit related to your ERC claim.
It’s important to research and vet any company providing ERC filing support to guarantee their credibility and expertise. Search for established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who provide ERC submitting support.
Remember that while these business can offer important help, it’s constantly a good concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and guarantee precise 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 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 readily available to eligible employers, consisting of for-profit companies, tax-exempt companies, and specific governmental entities. To certify, companies must meet one of two criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As mentioned earlier, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (up to 70%) of qualified incomes paid to employees, consisting of certain health insurance costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they received a PPP loan. The exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, enabling qualified employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides a chance for organizations to amend 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 Kind 941. If the credit exceeds the quantity of employment taxes owed, the excess can be reimbursed to the company.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have progressed over time. The best course of action is to speak with a tax expert or check out the official internal revenue service site for the most detailed and current info concerning the ERC, consisting of any recent legal changes or updates.
To qualify for the ERC, a company should meet among the following criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and organizations that got a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC involves finishing the required types and including the credit on your work tax return (normally Type 941). The exact time it takes to process the credit can differ based on several elements, consisting of the intricacy of your service and the workload of the internal revenue service. It’s recommended to seek advice from a tax expert for assistance specific to your circumstance.
There are a number of business that can assist with the process of declaring the ERC. Some popular companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based on general knowledge and may not reflect the most recent updates or modifications to the ERC. It is essential to talk to a tax expert or check out the main internal revenue service site for the most current and precise info regarding eligibility, claiming treatments, and available assistance.
Less than 100. If the company had 100 or fewer workers usually in 2019, then the credit is based.
on incomes paid to all employees whether they really worked or not. Simply put, 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 workers on average in 2019.
permitted only for earnings paid to employees who did not work during the calendar quarter.
In both cases, “incomes” consists of not just cash payments however also a part of the expense of employer.
offered health care. Can I Take The Employee Retention Credit And Ppp
Companies can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.