Get Employee Retention Credit And R&D Credit 2023

Lets talk first about Employee Retention Credit And R&D Credit :

Our team here what do these men doing everyone in this space is assisting teach individuals about ERC and uh constantly offer a stunning breakfast and have people really find out about the program we must head to the room where we are able to show a few of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I imply you know if you just start to 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 suggest think of 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 confirmed the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you

get this you understand the check is opted for sure and that’s when they pay so they do not pay anything until they actually get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their checking account and they can truly trust Wonder trust that the process has been completed and the number of you think you have actually processed because you began this we’re about 35 000 of these for

 


about 6 billion dollars wow so clearly they know what they’re doing which’s what you require 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 talking about something truly crucial today the employee retention credit which the majority of you have never become aware of I certainly hadn’t become aware of it till very recently and learned a lot about it since this is most likely the lowest cost of capital for any small company anywhere

anytime if you have workers in between 5 and five hundred so I have actually got the expert 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 simply contact your bank supervisor 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 all of us about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away very soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout 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 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.

correct the cash cash payroll tax refund alright go on sorry I just need to make certain we got that point I indicate that’s a big difference a loan versus money money 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 gorgeous difficult check in the mail where you get real cash from the internal revenue service all right so let’s talk about how it works since it sounds like to me if it’s a if it’s worker retention credit that person needed to be an employee so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you needed to have owned a service however it’s based upon you having W-2 employees in America not 10.99. As long as you had W-2 workers 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 6 months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you get back per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to a maximum of 7 thousand per quarter how did that happen um they just altered the rules in.

2021 versus since 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 approximately 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 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 need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around 10 thousand dollars a person so let’s say 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 huge clearly now the big concern is why does no one know about this since look when I first became aware of this when I initially fulfilled Josh you understand I’ve got great deals of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it due to the fact that I utilize the PPP we went through the money 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 deserved and we used them wisely to survive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even called to my politician friends Guv Senators they didn’t know about it I imply that’s how you understand that’s how false information is that there’s no info out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody know about the worker 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 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 process that’s all um and here there was chaos since remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered 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 government never made it clear to anybody 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 company your accounting professional no your accountant’s never ever done this before unless you have an account that entered into this company and bottom line my company Kevin has actually stayed in business because 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity 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 created to encourage.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
employer whose business is totally or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is offered to all companies regardless of size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.

Computation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of certifying salaries differs by whether an employer had, typically, more or less than.
100 workers in 2019.

Business that concentrate on ERC filing assistance typically supply know-how and assistance to assist organizations browse the intricate process of declaring the credit. They can use different services, including:.

 

How is the employee retention credit calculated? Employee Retention Credit And R&D Credit

Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. They can assist identify if you fulfill the requirements for the credit and identify the maximum credit amount you can claim.
Documents and Estimation: ERC filing services will assist in gathering the required documents, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit amount based on eligible incomes and other certifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you modify prior income tax return to claim these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the necessary kinds and documentation in your place. This includes completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have developed in time. These companies remain upgraded with the most recent changes and make sure that your filings abide by the most current standards. If the Internal revenue service requests extra information or conducts an audit related to your ERC claim, they can likewise offer continuous support.
It’s important to research and veterinarian any business offering ERC filing help to guarantee their trustworthiness and know-how. Try to find recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who offer ERC filing support.

Remember that while these business can provide important support, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified choices and ensure precise filings.

The Staff Member 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 employees throughout the pandemic, even if their operations have been impacted.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is available to eligible employers, including for-profit businesses, tax-exempt companies, and specific governmental entities. To certify, companies should 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 considerable decrease in gross invoices. As mentioned previously, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross receipts compared to the 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 company’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of qualified earnings paid to workers, consisting of specific health plan expenditures. 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: At first, organizations that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they received a PPP loan. The very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, allowing qualified companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision offers an opportunity for organizations to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Type 941. The excess can be refunded to the employer if the credit surpasses the quantity of employment taxes owed.
It is essential to note that the ERC arrangements and eligibility criteria have developed over time. The best course of action is to seek advice from a tax professional or go to the official IRS website for the most current and detailed info concerning the ERC, including any current legal modifications or updates.

To qualify for the ERC, a business must fulfill one of the following requirements:.

The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. For 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the 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% decline in gross invoices compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. For example, federal government entities and companies that got a PPP loan may have limitations on declaring the credit.

The process for claiming the ERC involves completing the needed types and consisting of the credit on your employment income tax return (usually Form 941). The exact time it requires to process the credit can differ based on numerous factors, including the intricacy of your organization and the work of the internal revenue service. It’s suggested to consult with a tax professional for assistance specific to your circumstance.

There are a number of companies that can assist with the process of claiming the ERC. Some popular companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.

Please keep in mind that the info provided here is based on basic knowledge and may not reflect the most current updates or modifications to the ERC. It is necessary to seek advice from a tax professional or visit the main IRS site for the most precise and updated info concerning eligibility, claiming procedures, and available help.

Less than 100. If the company had 100 or fewer staff members on average in 2019, then the credit is based.
on incomes paid to all employees whether they really worked or not. To put it simply, even if the.
workers worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
permitted only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just cash payments but also a portion of the cost of company.
supplied healthcare. Employee Retention Credit And R&D Credit
Payment.

Employers can be immediately repaid for the credit by reducing the amount of payroll taxes they.