Lets talk first about Employee Retention Credit 501C3 :
Our group here what do these guys doing everybody in this space is assisting teach individuals about ERC and uh always provide a gorgeous breakfast and have people actually learn about the program we ought to head to the room where we are able to show a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of countless dollars actually 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 indicate you understand if you just start to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just 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 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 opted for sure which’s when they pay so they don’t pay anything until they really receive the money they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the method they deposit it into their bank account and they can truly trust Wonder trust that the process has been ended up and how many you believe you’ve processed given that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you need you require 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 Terrific here you’re at my YouTube channel we’re speaking about something truly essential today the staff member retention credit which the majority of you have never ever become aware of I definitely hadn’t heard of it till really recently and learned a lot about it because this is probably the lowest cost 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 Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply contact your bank manager and say provide me a loan it doesn’t 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’ve become yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to learn everything 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 used 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 huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund fine go on sorry I simply have to make sure we got that point I mean that’s a huge difference a loan versus cash cash I like cash cash that’s what we’re talking about fine 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 gorgeous tough check in the mail where you get real cash from the IRS all right so let’s talk about 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 an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you had to have owned a company however it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one two and three of 2021. fine so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s salary 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 employee’s income to a maximum of seven thousand per quarter how did that take place um they simply 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 employees 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 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 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caution here the PPP cash would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city 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 big clearly now the big question is why does no one learn about this due to the fact that look when I initially found out about this when I first met Josh you know I’ve got great deals of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make numerous many investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe 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 been worthy of and we used them carefully to survive throughout the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t learn about it I imply that’s how you understand that’s how false information is that there’s no information out there then a lot of individuals informed 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 nobody know about the worker retention credit you know what’s intriguing 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 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 procedure that’s all um and here there was chaos since remember in the original cares act you could refrain from doing both programs so if you had done PPP you might not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not really he or she’s never done it before do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accountant’s never ever done this before unless you have an account that went into this company and bottom line my company Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients 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 federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
company whose organization is totally or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is fully or partly suspended by federal 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. Once the.
company’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries differs by whether a company had, usually, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing help normally offer expertise and support to help businesses navigate the complex procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit 501C3
Eligibility Assessment: These business will evaluate your company’s eligibility for the ERC based on aspects such as your industry, revenue, and operations. If you fulfill the requirements for the credit and identify the optimum credit amount you can claim, they can help identify.
Documentation and Computation: ERC filing services will help in gathering the essential paperwork, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit quantity based on eligible wages and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can examine your past payroll records and financials to identify possible opportunities for retroactive credits. They can help you amend prior tax returns to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and submit the necessary forms and paperwork on your behalf. This includes completing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have actually developed over time. These companies stay updated with the current changes and guarantee that your filings comply with the most present guidelines. They can likewise provide continuous assistance if the IRS demands additional information or performs an audit related to your ERC claim.
It is very important to research and vet any business using ERC filing assistance to guarantee their trustworthiness and competence. Search for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who provide ERC filing assistance.
Keep in mind that while these business can supply important assistance, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure 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 measures. The goal of the ERC is to encourage companies to retain and pay their workers during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, employers need to satisfy one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts 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 (approximately 70%) of certified earnings paid to staff members, consisting of certain health plan expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got an Income Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. The same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and enhanced, permitting eligible employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers an opportunity for organizations to amend prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, normally Form 941. The excess can be refunded to the company if the credit surpasses the amount of work taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have actually evolved over time. The very best strategy is to talk to a tax professional or check out the official internal revenue service website for the most updated and in-depth information concerning the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, a service needs to meet one of the following criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, federal government entities and services that got a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC involves completing the required types and including the credit on your employment tax return (usually Form 941). The exact time it takes to process the credit can differ based on a number of factors, including the intricacy of your company and the work of the IRS. It’s advised to seek advice from a tax professional for guidance specific to your circumstance.
There are a number of companies that can assist with the procedure of claiming the ERC. Some popular companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information offered here is based upon basic understanding and may not reflect the most recent updates or modifications to the ERC. It is very important to seek advice from a tax professional or check out the official IRS site for the most current and precise information concerning eligibility, declaring treatments, and available assistance.
Less than 100. If the company had 100 or less staff members on average in 2019, then the credit is based.
on salaries paid to all staff members whether they really worked or not. In other words, even if the.
workers worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
permitted only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “incomes” consists of not just money payments but also a part of the expense of company.
offered health care. Employee Retention Credit 501C3
Companies can be immediately repaid for the credit by decreasing the amount of payroll taxes they.