Explore: Employee Retention Credit Bottom Line 2023

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Our group here what do these people doing everyone in this room is assisting teach individuals about ERC and uh always supply a beautiful breakfast and have people truly learn more about the program we ought to head to the space where we have the ability to show some of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I imply you understand 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 imply it’s just I mean think of how many real customers that went through the program yeah this is the very end this is the celebration 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 client so that’s how you have the ability to track it you understand when you

receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything up until they in fact receive the cash 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 genuinely rely on Wonder trust that the procedure has been finished and the number of you believe you have actually processed since you began this we’re about 35 000 of these for

 


about 6 billion dollars wow so plainly they know what they’re doing and that’s what you require you require 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 actually important today the staff member retention credit which most of you have actually never ever become aware of I definitely had not become aware of it till extremely just recently and found out a lot about it because this is most likely the most affordable expense of capital for any small business anywhere

anytime if you have staff members between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 manager and state 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 disappearing very soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.

remedy the cash cash payroll tax refund alright go on sorry I simply have to make certain we got that point I mean that’s a big 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 stunning difficult check in the mail where you get real money from the internal revenue service 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 worker retention credit that person needed to be a staff member so I’m going to make the Presumption this cash is not for the owner not for people 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 employees 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 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 proper so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part cash 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 precise Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that happen um they simply changed the rules in.

2021 versus since the chaos 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 after that what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a lot of money it is now there’s a caveat here the PPP money would have to be decreased 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 usually Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the huge concern is why does no one understand about this because look when I first found out about this when I first satisfied Josh you know I’ve got great deals of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make lots of numerous investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I don’t think it because 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 deserved and we used them sensibly to survive during the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t know about it I mean that’s how you understand that’s how false information is that there’s no details out there then a lot of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one know about the employee retention credit you know what’s interesting you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it extremely 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 simply procedure process that’s all um and here there was turmoil since remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC due to the fact that 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 in the past 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 prior to unless you have an account that entered into this service and bottom line my firm Kevin has actually stayed in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate customers have actually dealt 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 property tax all of these other federal government programs.

The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose business is totally or partially suspended.
decrease by more than 50%.
Accessibility.
1. The credit is available to all employers despite size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. When the.
employer’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.

Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of qualifying earnings differs by whether a company had, usually, basically than.
100 employees in 2019.

Companies that focus on ERC filing support usually provide proficiency and assistance to assist services browse the intricate process of claiming the credit. They can provide different services, consisting of:.

 

How is the employee retention credit calculated? Employee Retention Credit Bottom Line

Eligibility Assessment: These business will evaluate your organization’s eligibility for the ERC based on elements such as your industry, income, and operations. They can assist determine if you meet the requirements for the credit and recognize the maximum credit quantity you can declare.
Documentation and Calculation: ERC filing services will assist in collecting the necessary documents, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit quantity based upon eligible salaries and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can examine your past payroll records and financials to recognize potential chances for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the essential types and paperwork in your place. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually developed gradually. These business stay updated with the current changes and guarantee that your filings adhere to the most current guidelines. They can likewise provide ongoing support if the IRS demands additional info or carries out an audit related to your ERC claim.
It is necessary to research and veterinarian any business using ERC filing help to ensure their credibility and expertise. Search for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax experts who offer ERC submitting support.

Keep in mind that while these companies can provide valuable help, it’s always a good idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and make sure accurate filings.

The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage organizations to maintain and pay their employees throughout the pandemic, even if their operations have actually been affected.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is available to qualified employers, including for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, companies should meet one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned previously, for 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away 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 (approximately 70%) of qualified earnings paid to workers, consisting of certain 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, businesses that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. The same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, permitting qualified employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, typically Form 941. The excess can be refunded to the employer if the credit surpasses the amount of employment taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility criteria have actually evolved with time. The best course of action is to seek advice from a tax professional or check out the official IRS site for the most detailed and current info concerning the ERC, consisting of any current legislative modifications or updates.

To receive the ERC, a service should satisfy among the following criteria:.

The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a significant decrease is specified as a 20% decrease 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 receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For example, federal government entities and services that received a PPP loan may have constraints on claiming the credit.

The procedure for declaring the ERC includes completing the required types and consisting of the credit on your employment income tax return (generally Type 941). The exact time it takes to process the credit can differ based upon several aspects, including the intricacy of your business and the workload of the IRS. It’s advised to consult with a tax expert for assistance specific to your circumstance.

There are several companies that can help with the procedure of claiming the ERC. Some well-known business that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.

Please note that the details offered here is based on general understanding and may not show the most current updates or changes to the ERC. It’s important to consult with a tax professional or go to the official IRS site for the most updated and precise information regarding eligibility, claiming procedures, and readily available assistance.

Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on wages paid to all workers whether they actually worked or not. In other words, 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 on average in 2019, then the credit is.
permitted only for wages paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not simply money payments but likewise a portion of the cost of company.
offered health care. Employee Retention Credit Bottom Line
Payment.

Companies can be right away repaid for the credit by minimizing the quantity of payroll taxes they.