Lets talk first about Do Part Time Employees Qualify For Employee Retention Credit :
Our team here what do these guys doing everybody in this space is helping teach people about ERC and uh always supply a stunning breakfast and have people truly find out about the program we should head to the space where we are able to display 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 millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I indicate you understand if you just start to look at some 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 imply 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 validated 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 have the ability to track it you understand when you
receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything until they really receive the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their bank account and they can really rely on Wonder trust that the procedure has actually been completed and the number of you think you have actually 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 require you need experts on the other end of the phone to process this and get it to where you get among these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re speaking about something really important today the staff member retention credit which most of you have never heard of I certainly had not heard of it until extremely just recently and learned a lot about it due to the fact that this is most likely the lowest cost of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Ideas 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 phone your bank supervisor and say provide me a loan it doesn’t 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’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to discover all 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 created the cares Act and the cares act provided services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big distinction right there two 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 okay go on sorry I just have to ensure we got that point I imply that’s a big difference a loan versus money money I like cash cash 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 beautiful tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that individual needed to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you had to have actually owned a company however 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 eligible 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 stroll us through the six quarters so you had quarters two 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 during that duration now let’s talk my favorite part cash just how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that take place um they just altered 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 up to 5 thousand Max and after that 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 worker that is since that’s a lot of money it is now there’s a caveat here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred workers 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 concern is why does nobody learn about this since appearance when I initially found out about this when I initially met Josh you know I have actually got great deals of financial investments in great deals of business I’m a major supporter for entrepreneurship in America and make lots of many investments in entrepreneurs of which numerous suffered through the pandemic when I initially became aware of this I called BS I do not believe it since I use 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 utilized them carefully to survive during the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my political leader friends Guv Senators they didn’t understand about it I suggest that’s how you know that’s how misinformation is that there’s no info out there then a lot of individuals informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s interesting you’re talking about the banks Kevin because 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 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 simply process process that’s all um and here there was turmoil since keep in mind in the initial cares act you might refrain from doing 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 refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO know how to do this not really she or he’s never ever done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this service and bottom line my firm Kevin has stayed in business given that 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big big business customers have dealt 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 staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, employer whose organization is completely or partly suspended.
decline by more than 50%.
1. The credit is offered to all companies despite size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
employer’s gross receipts go above 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 qualifying earnings paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes varies by whether an employer had, on average, more or less than.
100 employees in 2019.
Business that concentrate on ERC filing assistance normally supply competence and assistance to assist businesses navigate the complicated procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Do Part Time Employees Qualify For Employee Retention Credit
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based on factors such as your industry, revenue, and operations. If you meet the requirements for the credit and determine the maximum credit quantity you can declare, they can help determine.
Documents and Calculation: ERC filing services will help in gathering the necessary documentation, such as payroll records and monetary statements, to support your claim. They will also assist calculate the credit quantity based upon qualified wages and other qualifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to determine potential opportunities for retroactive credits. They can assist you change prior tax returns to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the needed kinds and documents in your place. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually developed over time. These companies stay upgraded with the current modifications and guarantee that your filings comply with the most existing standards. If the Internal revenue service demands extra details or carries out an audit related to your ERC claim, they can also offer ongoing support.
It is essential to research and vet any business offering ERC filing assistance to ensure their trustworthiness and knowledge. Try to find established firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax experts who use ERC filing assistance.
Remember that while these companies can provide valuable support, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure 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 businesses to retain and pay their workers during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, companies need to fulfill one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. As pointed out earlier, for 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the very 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% decline 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 amounts to a portion (up to 70%) of qualified incomes paid to employees, including specific health plan costs. 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, organizations that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. The very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, permitting qualified companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to change prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, normally Form 941. The excess can be reimbursed to the company if the credit surpasses the amount of employment taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have actually developed over time. The very best strategy is to consult with a tax expert or go to the official IRS website for the most up-to-date and in-depth info regarding the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, an organization must fulfill one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a significant 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 defined 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 right away preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC involves completing the necessary forms and including the credit on your employment tax return (normally Kind 941). The exact time it requires to process the credit can differ based on a number of elements, consisting of the intricacy of your business and the work of the internal revenue service. It’s suggested to talk to a tax professional for guidance particular to your circumstance.
There are numerous companies that can aid with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some well-known business that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and contact these business directly to inquire about their fees and services.
Please keep in mind that the details offered here is based upon basic knowledge and might not show the most current updates or modifications to the ERC. It’s important to speak with a tax professional or go to the main internal revenue service site for the most precise and current information concerning eligibility, declaring procedures, and readily available support.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on salaries paid to all staff members whether they actually worked or not. In other words, even if the.
workers 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 employees on average in 2019.
enabled just for salaries paid to employees who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply money payments however also a portion of the expense of company.
offered health care. Do Part Time Employees Qualify For Employee Retention Credit
Companies can be immediately repaid for the credit by decreasing the quantity of payroll taxes they.