Discover: Cares Act Employee Retention Credit Extension 2023

Lets talk first about Cares Act Employee Retention Credit Extension :

Our team here what do these men doing everyone in this room is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have people truly learn about the program we must head to the space where we are able to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I imply you know 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 imply it’s simply I mean think about the number of real 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 IRS heading to the customer so that’s how you’re able to track it you understand when you

get this you know the check is chosen sure which’s when they pay so they do not pay anything up until they really receive the cash they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their checking account and they can truly rely on Wonder trust that the process has been finished and how many you think you’ve processed since you started this we’re about 35 000 of these for

 


about six billion dollars wow so clearly 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 one of these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re speaking about something really essential today the worker retention credit which most of you have actually never heard of I definitely hadn’t become aware of it until very just recently and learned a lot about it since this is most likely the lowest expense of capital for any small company anywhere

anytime if you have workers 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 Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply contact your bank manager and say offer 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 enjoy this program it’s disappearing soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.

fix the cash cash payroll tax refund fine go on sorry I simply have to ensure we got that point I indicate that’s a huge difference a loan versus money 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 initial cares Act is the ERC and yes Kevin it is a beautiful tough check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual needed 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 investors it’s for workers right you had to have owned a business but it’s based on 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 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 correct so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 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 throughout that duration now let’s talk my favorite part money just how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the employee’s salary to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to an optimum of 7 thousand per quarter how did that take place um they simply altered the rules in.

2021 versus since 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 as much as five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caveat 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 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the big concern is why does no one understand about this due to the fact that look when I first found out about this when I initially satisfied Josh you know I have actually got great deals of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of 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 really easy to do we had our CEOs call the banks they got their loans which were well should have and we used them wisely to stay alive 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 friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does no one know about the employee retention credit you understand what’s interesting you’re talking about the banks Kevin due to the fact that 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 procedure procedure that’s all um and here there was turmoil due to the fact that keep in mind in the initial cares act you might not do both programs so if you had actually done PPP you could refrain from doing ERC in the initial 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 made it clear to any person about how to.

do this does your CFO know how to do this not truly she or he’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 company your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this service and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge huge business customers have actually dealt with bottom line to recuperate other government programs we’ve 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 worker retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep workers 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 service is fully or partly suspended.
decline by more than 50%.
Accessibility.
1. The credit is available to all companies despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is fully or partly 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. Once the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.

Computation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, on average, basically than.
100 workers in 2019.

Companies that focus on ERC filing assistance generally supply know-how and support to assist organizations navigate the complicated process of declaring the credit. They can provide numerous services, including:.

 

How is the employee retention credit calculated? Cares Act Employee Retention Credit Extension

Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based on elements such as your industry, income, and operations. If you meet the requirements for the credit and determine the optimum credit quantity you can claim, they can help identify.
Documentation and Estimation: ERC filing services will assist in gathering the needed documents, such as payroll records and monetary statements, to support your claim. They will also help determine the credit amount based upon eligible salaries and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can examine your past payroll records and financials to identify possible chances for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the required types and documentation in your place. This includes finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually developed over time. These business stay updated with the current changes and make sure that your filings abide by the most existing standards. If the Internal revenue service requests extra information or performs an audit related to your ERC claim, they can likewise offer continuous support.
It’s important to research and vet any company providing ERC filing assistance to guarantee their reliability and competence. Look for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who provide ERC submitting support.

Remember that while these companies can offer valuable assistance, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed choices and make sure accurate filings.

The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate businesses to keep and pay their staff members during the pandemic, even if their operations have actually been affected.

Here are some key points about the ERC:.

Eligibility: The ERC is available to qualified companies, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, companies need to meet one of two requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As pointed out earlier, for 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined 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 right away 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 portion (as much as 70%) of qualified wages paid to employees, consisting of certain health insurance expenditures. 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 Defense 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. However, the very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, allowing eligible employers to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision offers a chance for services to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, generally Form 941. If the credit surpasses the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have actually evolved in time. The best strategy is to seek advice from a tax expert or visit the main IRS site for the most in-depth and up-to-date information relating to the ERC, including any recent legal modifications or updates.

To get approved for the ERC, a company must meet one of the following criteria:.

Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. 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% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, government entities and organizations that received a PPP loan might have restrictions on claiming the credit.

The procedure for declaring the ERC includes completing the essential types and consisting of the credit on your work tax return (normally Form 941). The exact time it takes to process the credit can vary based upon several factors, consisting of the intricacy of your company and the workload of the internal revenue service. It’s suggested to talk to a tax expert for guidance particular to your scenario.

There are numerous companies that can help with the process of claiming the ERC. Some popular companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.

Please note that the info supplied here is based on general knowledge and may not reflect the most recent updates or modifications to the ERC. It is essential to consult with a tax professional or visit the official IRS website for the most current and accurate details concerning eligibility, declaring treatments, and readily available support.

Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on incomes paid to all workers whether they actually 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. If the employer had more than 100 workers typically in 2019, then the credit is.
allowed only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just money payments but likewise a portion of the cost of employer.
provided healthcare. Cares Act Employee Retention Credit Extension
Payment.

Companies can be instantly compensated for the credit by lowering the quantity of payroll taxes they.