Lets talk first about Deadline To Apply For Employee Retention Credit :
Our team here what do these people doing everyone in this room is assisting teach individuals about ERC and uh constantly supply a stunning breakfast and have people truly learn more about the program we must head to the space where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars literally Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the method I suggest you know if you just start 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 simply I imply consider how many real clients that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you
get this you understand the check is gone for sure and that’s when they pay so they do not pay anything up until they really get the cash 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 savings account and they can genuinely rely on Wonder trust that the process has been ended up and how many you believe you have actually processed because you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand 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 Fantastic here you’re at my YouTube channel we’re speaking about something really crucial today the employee retention credit which most of you have never ever become aware of I certainly had not become aware of it until really recently and discovered a lot about it since this is probably the most affordable expense of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply call up your bank manager and state offer me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash cash payroll tax refund all right go on sorry I just have to ensure we got that point I suggest that’s a big difference a loan versus cash cash I like cash money that’s what we’re talking 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 original cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get real money from the internal revenue service all right so let’s talk about how it works since it sounds like to me if it’s a if it’s worker retention credit that person had to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have owned a company however 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 need to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right 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 money just how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s income to a maximum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wanted to even get more to keep those workers 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 occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a lot of cash it is now there’s a caveat here the PPP cash would need to be lowered 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 typically Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the huge question is why does no one learn about this since appearance when I initially became aware of this when I initially fulfilled Josh you understand I’ve got great deals of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which numerous 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 use the PPP we went through the cash 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 should have and we used them carefully to stay alive throughout the pandemic so when I became aware of 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 suggest that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one understand about the worker retention credit you understand what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan process 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 huge banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process that’s all um and here there was chaos because remember in the initial cares act you might not do both programs so if you had done PPP you might not do 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 federal government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it in the past do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this business and bottom line my firm Kevin has stayed in business given that 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big huge business customers have actually worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Because of COVID-19 or whose gross receipts, company whose service is completely or partly suspended.
decline by more than 50%.
1. The credit is available to all companies despite size including tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is completely 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 equivalent quarter in 2019. When the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries differs by whether a company had, typically, more or less than.
100 workers in 2019.
Companies that focus on ERC filing support normally offer know-how and support to assist organizations browse the intricate process of declaring the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Deadline To Apply For Employee Retention Credit
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based upon elements such as your market, income, and operations. They can assist identify if you fulfill the requirements for the credit and determine the optimum credit quantity you can claim.
Documents and Calculation: ERC filing services will help in gathering the essential documentation, such as payroll records and financial declarations, to support your claim. They will also help determine the credit quantity based on qualified earnings and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to determine prospective chances for retroactive credits. They can assist you amend previous income tax return to claim these refunds.
Filing Help: Business concentrating on ERC filings will prepare and send the necessary kinds and paperwork on your behalf. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed gradually. These business remain upgraded with the latest changes and make sure that your filings adhere to the most current standards. They can likewise supply continuous assistance if the IRS requests additional information or carries out an audit related to your ERC claim.
It is necessary to research study and vet any company using ERC filing help to ensure their credibility and expertise. Look for recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who use ERC submitting support.
Remember that while these companies can supply valuable assistance, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to encourage services to retain and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, employers should satisfy 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 significant decrease in gross receipts. As pointed out previously, for 2021, a significant decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts 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 quantity is equal to a portion (approximately 70%) of certified earnings paid to employees, consisting of certain health insurance 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: Initially, services that received an Income Protection Program (PPP) loan were not eligible for the ERC. However, 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 salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, permitting qualified companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, usually Form 941. If the credit surpasses the quantity of employment taxes owed, the excess can be refunded to the company.
It’s important to note that the ERC provisions and eligibility criteria have actually evolved over time. The best course of action is to speak with a tax expert or check out the main internal revenue service site for the most current and in-depth details concerning the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a company needs to satisfy one of the following requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, federal government entities and organizations that received a PPP loan might have restrictions on claiming the credit.
The procedure for claiming the ERC involves completing the essential kinds and consisting of the credit on your employment tax return (normally Kind 941). The exact time it requires to process the credit can vary based upon a number of elements, consisting of the complexity of your business and the workload of the internal revenue service. It’s recommended to seek advice from a tax expert for guidance specific to your scenario.
There are several companies that can assist with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some popular companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and call these companies straight to inquire about their services and costs.
Please keep in mind that the information offered here is based upon basic understanding and might not reflect the most recent updates or modifications to the ERC. It is essential to talk to a tax professional or go to the official internal revenue service website for the most updated and precise information concerning 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 workers whether they in fact worked or not. To put it simply, even if the.
workers worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
enabled just for salaries paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just money payments but likewise a part of the expense of employer.
offered healthcare. Deadline To Apply For Employee Retention Credit
Companies can be immediately repaid for the credit by minimizing the amount of payroll taxes they.