Lets talk first about Claim Your Employee Retention Credit :
Our group here what do these men doing everybody in this space is helping teach people about ERC and uh constantly supply a gorgeous breakfast and have people truly learn about the program we must head to the room where we are able to show some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the method I suggest you know if you simply start to look at a few of these here I suggest 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 how many actual customers that went through the program yeah this is the very end this is the party 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 have the ability to track it you understand when you
receive this you understand the check is gone for sure which’s when they pay so they do not pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the way they deposit it into their bank account and they can genuinely rely on Wonder trust that the procedure has been ended up and the number of you think you’ve processed since you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you need you need 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 Wonderful here you’re at my YouTube channel we’re speaking about something really essential today the staff member retention credit which most of you have actually never become aware of I definitely hadn’t become aware of it until very recently and discovered a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve 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 challenging this isn’t like PPP we just call up your bank manager and say 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 ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away very soon you got to find out all 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 came up with the cares Act and the cares act offered companies 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 big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money money payroll tax refund fine go on sorry I just need to make sure we got that point I suggest that’s a big difference a loan versus money money I like cash money that’s what we’re speaking about all right 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 difficult check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works because it seems like to me if it’s a if it’s worker retention credit that person needed to be an employee 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 needed to have owned an organization but it’s based on you having W-2 staff members 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 eligible so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six 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 three and four of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my favorite part money just 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 salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that occur um they simply changed the rules in.
2021 versus because the mayhem 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 up to 5 thousand Max and then what takes place 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 worker that is since that’s a lot of money it is now there’s a caution here the PPP cash would have 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 usually Kevin is if you took PPP money somewhere around ten 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 cash you would still get a million dollar in the mail from the IRS so it’s huge undoubtedly now the huge concern is why does nobody know about this since appearance when I initially became aware of this when I first fulfilled Josh you know I have actually got great deals of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I don’t believe it since I utilize the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we utilized them carefully to survive during the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even called to my politician friends Governor Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation is that there’s no info out there then a lot of individuals told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody know 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 big 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 just process process that’s all um and here there was mayhem due to the fact that remember in the initial cares act you could not do both programs so if you had done PPP you might not do 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 government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not actually she or he’s never done it before do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accountant’s never ever done this prior to unless you have an account that entered into this service and bottom line my company Kevin has actually been in business considering that 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate customers have actually worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose service is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. Once the.
company’s gross invoices 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 certifying earnings paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of certifying earnings differs by whether an employer had, typically, more or less than.
100 workers in 2019.
Companies that focus on ERC filing support normally provide expertise and support to assist businesses navigate the complicated process of claiming the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Claim Your Employee Retention Credit
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based on elements such as your market, income, and operations. They can assist figure out if you fulfill the requirements for the credit and determine the maximum credit amount you can claim.
Documents and Estimation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and financial statements, to support your claim. They will also help compute the credit quantity based on eligible earnings and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can review your past payroll records and financials to determine potential opportunities for retroactive credits. They can help you modify previous income tax return to claim these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the essential types and paperwork on your behalf. This includes finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have developed in time. These companies remain updated with the latest changes and ensure that your filings abide by the most existing standards. They can likewise offer ongoing assistance if the internal revenue service demands extra details or performs an audit related to your ERC claim.
It’s important to research and vet any company using ERC filing help to ensure their reliability and knowledge. Look for established firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who provide ERC filing assistance.
Bear in mind that while these business can offer valuable assistance, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate services to keep and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To certify, companies should meet one of two criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As discussed earlier, for 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of certified incomes paid to staff members, consisting of specific health insurance expenses. 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 got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they received a PPP loan. However, the exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, allowing qualified companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for organizations to modify prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Form 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It is very important to keep in mind that the ERC provisions and eligibility criteria have actually developed with time. The best strategy is to talk to a tax expert or go to the main IRS website for the most updated and comprehensive info relating to the ERC, consisting of any recent legal modifications or updates.
To get approved for the ERC, a company should fulfill one of the following criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a substantial decrease is specified 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 very same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, government entities and businesses that received a PPP loan might have constraints on claiming the credit.
The process for claiming the ERC involves finishing the essential forms and consisting of the credit on your work income tax return (typically Type 941). The exact time it requires to process the credit can vary based upon a number of elements, including the complexity of your business and the work of the internal revenue service. It’s advised to talk to a tax professional for guidance specific to your situation.
There are numerous business that can help with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some widely known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and contact these business straight to inquire about their charges and services.
Please keep in mind that the details provided here is based upon general knowledge and might not reflect the most recent updates or modifications to the ERC. It’s important to speak with a tax expert or go to the official internal revenue service site for the most up-to-date and precise info relating to eligibility, claiming treatments, and available support.
Less than 100. If the employer had 100 or less employees typically in 2019, then the credit is based.
on incomes paid to all staff members whether they actually worked or not. To put it simply, 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 employer had more than 100 workers on average in 2019.
enabled just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not just money payments but likewise a portion of the expense of employer.
provided healthcare. Claim Your Employee Retention Credit
Companies can be instantly compensated for the credit by lowering the amount of payroll taxes they.