Lets talk first about Do I Qualify For Employee Retention Credit :
Our group here what do these men doing everybody in this space is helping teach people about ERC and uh constantly offer a gorgeous breakfast and have individuals really learn more about the program we ought to head to the space where we have the ability to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I mean you know if you simply begin to 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 indicate it’s simply 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 verified the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you have the ability to track it you know when you
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything till they in fact receive the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the process has actually been finished and the number of you think you have actually processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you require you require 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 Terrific here you’re at my YouTube channel we’re discussing something really crucial today the staff member retention credit which the majority of you have never ever become aware of I definitely had not heard of it till extremely recently and discovered a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I have actually 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 difficult this isn’t like PPP we just contact 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 representative for this I like this program it’s disappearing very soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund alright go on sorry I just need to make sure we got that point I mean that’s a big difference a loan versus money cash I like money 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 initial cares Act is the ERC and yes Kevin it is a lovely tough check in the mail where you get actual money from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s employee retention credit that individual needed to be an employee so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have owned an organization but it’s based upon you having W-2 workers 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 proper so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part money just how much can you get back per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be exact 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 increased to 70 of the worker’s wage to an optimum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus due to the fact that the chaos 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 then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of cash 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 2 you would reduce the 26 000 so what we’re seeing typically 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 workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s substantial certainly now the big concern is why does nobody learn about this because look when I first heard about this when I first fulfilled Josh you understand I’ve got great deals of investments in lots of business I’m a major advocate for entrepreneurship in America and make numerous lots of investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it because I utilize 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 which were well deserved and we used them carefully to survive during the pandemic so when I heard about this I stated nah it can’t hold true however when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t know about it I mean that’s how you know that’s how misinformation is that there’s no information out there then a lot of individuals told me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one understand about the worker retention credit you understand what’s fascinating 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 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 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 chaos because keep in mind in the initial cares act you could refrain from doing both programs so if you had done PPP you might refrain from doing 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 made it clear to anyone about how to.
do this does your CFO know how to do this not really he or she’s never 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 accountant no your accounting professional’s never ever done this before unless you have an account that entered into this business and bottom line my firm Kevin has actually been in business because 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business clients have worked with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness 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 staff members on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose company is totally or partially suspended.
decline by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. When the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes 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 incomes differs by whether a company had, typically, basically than.
100 workers in 2019.
Companies that concentrate on ERC filing assistance normally offer competence and support to assist services browse the complicated process of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Do I Qualify For Employee Retention Credit
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based upon factors such as your market, profits, and operations. If you meet the requirements for the credit and identify the maximum credit amount you can declare, they can assist figure out.
Documentation and Computation: ERC filing services will help in gathering the required documents, such as payroll records and monetary declarations, to support your claim. They will likewise help calculate the credit quantity based upon qualified wages and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your past payroll records and financials to determine prospective chances for retroactive credits. They can assist you amend previous tax returns to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the required types and documentation on your behalf. This includes completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have progressed gradually. These companies stay updated with the current modifications and guarantee that your filings adhere to the most current guidelines. If the IRS requests extra details or carries out an audit associated to your ERC claim, they can also provide continuous support.
It is essential to research and vet any company offering ERC filing support to guarantee their reliability and know-how. Search for recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax experts who offer ERC filing assistance.
Remember that while these business can provide important assistance, it’s always a good idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to keep 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 available to eligible employers, consisting of for-profit businesses, tax-exempt organizations, and certain governmental entities. To qualify, employers must meet one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (as much as 70%) of certified incomes paid to workers, consisting of specific health insurance expenses. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they got a PPP loan. Nevertheless, the exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, allowing qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Kind 941. If the credit surpasses the amount of work taxes owed, the excess can be reimbursed to the employer.
It’s important to note that the ERC provisions and eligibility requirements have actually evolved in time. The very best course of action is to seek advice from a tax expert or visit the official internal revenue service website for the most detailed and up-to-date information regarding the ERC, consisting of any current legislative changes or updates.
To receive the ERC, a company must meet among the following requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the very 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, including tax-exempt companies, but there are some exceptions. For instance, government entities and companies that received a PPP loan may have restrictions on claiming the credit.
The process for declaring the ERC involves completing the required types and including the credit on your employment income tax return (normally Kind 941). The exact time it takes to process the credit can differ based upon numerous aspects, including the intricacy of your business and the work of the IRS. It’s suggested to talk to a tax expert for assistance specific to your situation.
There are numerous business that can aid with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some popular companies that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these business directly to inquire about their costs and services.
Please note that the details provided here is based upon basic understanding and might not show the most recent updates or changes to the ERC. It’s important to speak with a tax expert or check out the official IRS site for the most accurate and current details concerning eligibility, claiming treatments, and available help.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on wages paid to all workers whether they in fact worked or not. Simply put, even if the.
workers worked full time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
permitted just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply money payments but also a part of the expense of employer.
offered healthcare. Do I Qualify For Employee Retention Credit
Companies can be right away repaid for the credit by minimizing the quantity of payroll taxes they.