Lets talk first about Employee Retention Credit Affiliate Program :
Our team here what do these guys doing everybody in this space is assisting teach people about ERC and uh always provide a lovely breakfast and have people actually find out about the program we should head to the room where we are able to show some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I indicate you understand if you simply start 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 just I mean think about the number of actual customers 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 customer so that’s how you have the ability to track it you understand when you
get this you know the check is opted for sure and that’s when they pay so they do not pay anything until they actually get the money they don’t pay bottom line Wonder trust anything till 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 process has been ended up and how many you believe you have actually processed considering that 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 among these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re discussing something truly crucial today the staff member retention credit which most of you have never ever heard of I definitely hadn’t heard of it up until really just recently and found out a lot about it due to the fact that this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers in between 5 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 Principles 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 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 all of us about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I enjoy this program it’s disappearing 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 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 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 all right go on sorry I simply have to make certain we got that point I imply that’s a big difference a loan versus cash cash I like money 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 lovely hard check in the mail where you get actual cash from the internal revenue service all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that individual had to be a staff member so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have actually owned a service but it’s based on you having W-2 employees 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 six months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my favorite part money how much can you get back per worker 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 a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because the turmoil 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 approximately 5 thousand Max and then what happens 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 six thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caution here the PPP money would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York 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 big undoubtedly now the big concern is why does nobody learn about this due to the fact that look when I initially found out about this when I first satisfied Josh you understand I’ve got great deals of investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t believe it because 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 which were well should have and we used them sensibly to survive throughout the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even called to my politician good friends Guv Senators they didn’t understand about it I indicate that’s how you know that’s how misinformation is that there’s no details out there then a lot of individuals informed me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody learn about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 procedure that’s all um and here there was turmoil because remember in the original cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the initial 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 made it clear to anyone about how to.
do this does your CFO know how to do this not actually he or she’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 done this before unless you have an account that entered into this service and bottom line my company Kevin has been in business considering that 2009 and we have actually been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a great deal of our huge big business customers have actually worked with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
company whose service is completely or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. Once 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 incomes paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether a company had, on average, basically than.
100 workers in 2019.
Business that specialize in ERC filing help normally supply expertise and assistance to help businesses browse the complex procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Affiliate Program
Eligibility Assessment: These business will evaluate your organization’s eligibility for the ERC based upon factors such as your market, earnings, and operations. They can help determine if you meet the requirements for the credit and identify the maximum credit amount you can declare.
Documents and Estimation: ERC filing services will help in collecting the needed documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist determine the credit quantity based upon eligible incomes and other certifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these business can examine your past payroll records and financials to identify potential opportunities for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and send the necessary kinds and documents in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have actually evolved in time. These business remain upgraded with the latest changes and guarantee that your filings abide by the most current standards. They can likewise provide continuous support if the IRS requests extra information or conducts an audit related to your ERC claim.
It is essential to research and veterinarian any business providing ERC filing help to guarantee their trustworthiness and proficiency. Look for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax experts who offer ERC filing support.
Bear in mind that while these companies can supply important help, it’s always a great idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate services to retain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To certify, companies should satisfy one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined 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 right away 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 wages paid to employees, consisting of particular health insurance costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they got a PPP loan. The very same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for businesses to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, generally Form 941. The excess can be refunded to the company if the credit surpasses the quantity of employment taxes owed.
It is essential to note that the ERC arrangements and eligibility criteria have actually evolved with time. The best strategy is to talk to a tax professional or visit the official internal revenue service website for the most updated and in-depth details relating to the ERC, including any current legal changes or updates.
To qualify for the ERC, an organization needs to meet among the following criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that got a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC includes finishing the required forms and including the credit on your employment income tax return (generally Form 941). The exact time it takes to process the credit can vary based upon a number of factors, including the intricacy of your service and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for assistance specific to your situation.
There are several companies that can assist with the procedure of claiming the ERC. Some well-known companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on basic understanding and might not show the most recent updates or modifications to the ERC. It is very important to speak with a tax expert or go to the main IRS website for the most up-to-date and precise details concerning eligibility, claiming treatments, and offered support.
Less than 100. If the employer had 100 or fewer workers typically in 2019, then the credit is based.
on incomes paid to all workers 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. If the employer had more than 100 workers typically in 2019, then the credit is.
enabled only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply money payments but also a part of the expense of employer.
offered healthcare. Employee Retention Credit Affiliate Program
Companies can be instantly compensated for the credit by reducing the amount of payroll taxes they.