Lets talk first about Employee Retention Credit And Ppp Loan Forgiveness :
Our group here what do these men doing everyone in this space is assisting teach individuals about ERC and uh always offer a gorgeous breakfast and have people really discover the program we need to head to the room where we have the ability 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 hundreds of millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I suggest you understand if you simply begin to take a look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I indicate think of the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are validated 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
get this you understand the check is opted for sure which’s when they pay so they don’t pay anything until they actually receive the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they transfer it into their savings account and they can really rely on Wonder trust that the process has been completed and the number of you believe you’ve processed because you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you need you require specialists 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly crucial today the worker retention credit which the majority of you have actually never become aware of I definitely had not heard of it up until really recently and learned a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have workers in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 manager and state offer 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 have actually ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away very soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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.
remedy the money money payroll tax refund all right go on sorry I simply need to make sure we got that point I mean that’s a big difference a loan versus money money I like cash money 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real money from the IRS 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 person had to be a worker 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 staff members 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. so as long as you had W-2 staff members 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 have to be on payroll for the first six months of 2021 on the W-2 appropriate so there were six 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 two and 3 of 2021. all right so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my preferred part cash just how much can you get back per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus because 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 five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a great deal of cash it is now there’s a caveat here the PPP cash would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would decrease 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 state hypothetically you owned a restaurant in New York 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 internal revenue service so it’s huge certainly now the big concern is why does no one learn about this since look when I first found out about this when I initially met Josh you understand I have actually got great deals of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many many financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially became aware of this I called BS I do not think it due to the fact that 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 and that were well should have and we used them carefully to stay alive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even contacted us to my political leader buddies Governor Senators they didn’t know about it I imply that’s how you know that’s how false information is that there’s no info out there then a lot of individuals told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s interesting you’re speaking about the banks Kevin since 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 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 since remember in the initial cares act you could not do both programs so if you had actually 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 since it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never ever done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big big business customers have worked with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Since of COVID-19 or whose gross invoices, employer whose company is fully or partly suspended.
decline by more than 50%.
1. The credit is available to all companies despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the equivalent quarter in 2019. Once the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying earnings 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 wages differs by whether a company had, typically, more or less than.
100 staff members in 2019.
Business that focus on ERC filing help typically provide competence and assistance to help businesses navigate the complicated procedure of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit And Ppp Loan Forgiveness
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. They can help identify if you meet the requirements for the credit and identify the optimum credit quantity you can declare.
Documentation and Computation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and financial declarations, to support your claim. They will likewise assist compute the credit quantity based upon eligible wages and other qualifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can examine your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and submit the necessary kinds and documents on your behalf. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have developed over time. These business remain upgraded with the latest changes and guarantee that your filings abide by the most present standards. They can likewise provide ongoing support if the IRS requests additional information or carries out an audit related to your ERC claim.
It is necessary to research study and veterinarian any business using ERC filing assistance to ensure their reliability and proficiency. Search for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax experts who provide ERC filing support.
Keep in mind that while these business can offer valuable assistance, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to motivate companies to keep and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, companies must satisfy one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As mentioned previously, for 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a percentage (as much as 70%) of qualified salaries paid to employees, 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, companies that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they received a PPP loan. Nevertheless, the exact same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, enabling qualified companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for organizations to change prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, usually Type 941. The excess can be reimbursed to the employer if the credit surpasses the amount of work taxes owed.
It is very important to note that the ERC provisions and eligibility criteria have actually evolved with time. The best strategy is to seek advice from a tax expert or check out the official IRS site for the most comprehensive and updated information concerning the ERC, including any current legislative changes or updates.
To qualify for the ERC, a business must fulfill among the following criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a substantial 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% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and services that received a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC involves completing the essential kinds and including the credit on your employment income tax return (generally Type 941). The exact time it takes to process the credit can differ based on several elements, consisting of the intricacy of your company and the work of the internal revenue service. It’s suggested to consult with a tax expert for guidance specific to your situation.
There are several companies that can help with the procedure of declaring the ERC. Some popular companies that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based upon general understanding and might not reflect the most recent updates or modifications to the ERC. It is very important to talk to a tax expert or visit the main IRS website for the most up-to-date and accurate info regarding eligibility, declaring treatments, 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 employees whether they in fact worked or not. To put it simply, even if the.
employees worked full-time and made money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
enabled just for earnings paid to employees who did not work during the calendar quarter.
In both cases, “salaries” includes not simply cash payments but likewise a portion of the expense of employer.
supplied healthcare. Employee Retention Credit And Ppp Loan Forgiveness
Companies can be instantly reimbursed for the credit by decreasing the quantity of payroll taxes they.