Lets talk first about Employee Retention Credit And Payroll Protection Program :
Our team here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh always offer a stunning breakfast and have individuals really find out about the program we ought to head to the space where we are able to display 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 millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I suggest you know if you simply begin to take a look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I mean think of how many 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 validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you understand when you
get this you understand the check is opted for sure which’s when they pay so they don’t pay anything till they really get the money they do not pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their checking account and they can genuinely rely on Wonder trust that the process has been finished and the number of you believe you’ve processed given that 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 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 Terrific here you’re at my YouTube channel we’re talking about something truly important today the employee retention credit which most of you have never ever heard of I definitely hadn’t become aware of it up until extremely just recently and learned a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 simply call your bank supervisor and say give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing very soon you got to find out 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 came up with the cares Act and the cares act provided businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference right there 2 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 fine go on sorry I simply have to make sure we got that point I imply that’s a big difference a loan versus cash money I like money money that’s what we’re speaking 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 hard check in the mail where you get real cash from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual had to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you needed to have actually owned a business however 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 first six months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three 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 preferred part cash just how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to a maximum of 7 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 wished 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 then what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 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 caution here the PPP money would need to be reduced 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 money somewhere around 10 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 employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial undoubtedly now the big question is why does no one understand about this since appearance when I first found out about this when I initially fulfilled Josh you understand I’ve got lots of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many lots of investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I do not think it since I use the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well should have and we used them wisely to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader pals Governor Senators they didn’t learn about it I indicate that’s how you understand that’s how false information is that there’s no information out there then a lot of people 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 nobody understand about the staff member retention credit you know what’s intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very clear that if you desired 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 just process procedure that’s all um and here there was mayhem due to the fact that keep in mind in the original cares act you could not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed 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 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 done it before do the banks do it nope the banks don’t do it the payroll companies yeah a few 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 entered into this organization and bottom line my firm Kevin has actually been in business considering that 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our big big corporate clients have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, employer whose business is totally or partly suspended.
decrease by more than 50%.
Availability.
1. The credit is readily available to all companies regardless of size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is completely or partially 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 comparable quarter in 2019. When the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after the end 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 is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, usually, more or less than.
100 staff members in 2019.
Companies that focus on ERC filing help generally supply proficiency and assistance to help services browse the intricate procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit And Payroll Protection Program
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based upon factors such as your industry, profits, and operations. They can assist determine if you meet the requirements for the credit and recognize the optimum credit amount you can claim.
Paperwork and Estimation: ERC filing services will help in gathering the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit quantity based upon eligible incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can evaluate your past payroll records and financials to determine potential chances for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and send the necessary types and documents on your behalf. This consists of completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have developed in time. These companies remain updated with the latest changes and make sure that your filings adhere to the most existing standards. If the Internal revenue service demands extra details or conducts an audit associated to your ERC claim, they can also offer ongoing support.
It is very important to research and veterinarian any business offering ERC filing assistance to ensure their credibility and proficiency. Search for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who provide ERC submitting support.
Keep in mind that while these companies can supply valuable assistance, it’s always a great concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed choices and guarantee precise filings.
The Employee 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 services to maintain and pay their workers during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit organizations, tax-exempt companies, and specific governmental entities. To qualify, companies need to fulfill one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As mentioned earlier, for 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (up to 70%) of certified salaries paid to workers, including certain health plan expenses. The maximum 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 got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. Nevertheless, the same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, permitting eligible companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for services to change prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, generally Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the employer.
It is necessary to note that the ERC arrangements and eligibility requirements have developed with time. The best course of action is to speak with a tax expert or go to the main IRS website for the most comprehensive and up-to-date details regarding the ERC, consisting of any recent legal modifications or updates.
To get approved for the ERC, a business should fulfill among the following criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and companies that received a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC includes finishing the essential forms and consisting of the credit on your employment income tax return (usually Form 941). The exact time it takes to process the credit can vary based upon several factors, consisting of the intricacy of your business and the workload of the internal revenue service. It’s suggested to talk to a tax expert for assistance particular to your circumstance.
There are numerous business that can assist with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some well-known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these companies directly to ask about their costs and services.
Please note that the info offered here is based upon general knowledge and might not reflect the most current updates or modifications to the ERC. It is very important to speak with a tax expert or check out the main IRS website for the most precise and up-to-date details regarding eligibility, claiming procedures, and readily available help.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on salaries paid to all workers whether they really worked or not. To put it simply, even if the.
employees worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members usually in 2019, then the credit is.
enabled just for wages paid to workers who did not work during the calendar quarter.
In both cases, “salaries” consists of not just money payments however also a part of the cost of employer.
supplied healthcare. Employee Retention Credit And Payroll Protection Program
Payment.
Companies can be instantly compensated for the credit by minimizing the amount of payroll taxes they.