Lets talk first about Employee Retention Credit Cares :
Our team here what do these people doing everyone in this room is helping teach people about ERC and uh constantly supply a stunning breakfast and have people truly find out about the program we ought to head to the space where we are able to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars literally Kevin numerous millions of 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 just 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 indicate it’s simply 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 confirmed 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 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 don’t pay anything until they actually get the cash they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their bank account and they can really trust Wonder trust that the procedure has been completed and how many you believe you’ve processed since you began this we have to do with 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 professionals 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 talking about something actually essential today the employee retention credit which the majority of you have never ever become aware of I certainly hadn’t heard of it till really recently and learned a lot about it since this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator 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 just phone your bank manager and say give 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 ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund okay go on sorry I just need to ensure we got that point I suggest that’s a huge distinction a loan versus money 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 tough check in the mail where you get real money from the IRS all right so let’s talk about how it works because it sounds like to me if it’s a if it’s worker retention credit that person had to be an employee so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have actually owned an organization but 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 eligible 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 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. okay so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s salary to a maximum of seven thousand per quarter how did that occur um they simply altered 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 occurs 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 employee that is because that’s a great deal of money it is now there’s a caution here the PPP money would need to be minimized 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 a person so let’s state hypothetically you owned a dining establishment in New York 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 big question is why does nobody know about this due to the fact that look when I first heard about this when I initially met Josh you know I have actually got lots of investments in lots of business I’m a significant supporter for entrepreneurship in America and make numerous lots of investments in business owners of which numerous suffered through the pandemic when I first found out about this I called BS I do not 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 deserved and we utilized them carefully to survive during the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even contacted us to my politician buddies Governor Senators they didn’t know about it I mean that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of people informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one understand about the employee retention credit you understand what’s interesting you’re discussing the banks Kevin because in the PPP loan procedure the federal government made it really 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 mayhem since keep in mind in the initial cares act you could refrain from doing both programs so if you had done PPP you might 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 ever made it clear to anybody about how to.
do this does your CFO know how to do this not actually he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accountant’s never done this before unless you have an account that went into this organization and bottom line my company Kevin has actually been in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge corporate clients have worked with bottom line to recuperate other 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 federal government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
company whose organization is completely or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Schedule.
1. The credit is readily available to all employers despite size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is fully or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the comparable quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying salaries differs by whether a company had, on average, more or less than.
100 workers in 2019.
Companies that focus on ERC filing help usually provide competence and support to assist services navigate the complicated procedure of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Cares
Eligibility Evaluation: These companies will assess your company’s eligibility for the ERC based on aspects such as your market, income, and operations. They can assist determine if you fulfill the requirements for the credit and recognize the optimum credit amount you can claim.
Paperwork and Calculation: ERC filing services will help in gathering the needed documents, such as payroll records and financial statements, to support your claim. They will also help compute the credit amount based upon eligible salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the necessary types and documents on your behalf. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have evolved over time. These companies remain upgraded with the latest modifications and guarantee that your filings abide by the most present guidelines. They can also provide continuous assistance if the IRS demands extra information or conducts an audit related to your ERC claim.
It’s important to research study and vet any company providing ERC filing assistance to ensure their reliability and expertise. Search for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax specialists who offer ERC submitting support.
Bear in mind that while these companies can provide important help, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed choices and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage companies to keep and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit businesses, tax-exempt companies, and certain governmental entities. To qualify, companies must fulfill one of two requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As discussed earlier, for 2021, a substantial decrease is defined as a 20% decrease 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 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 employer’s share of Social Security taxes. The credit amount is equal to a portion (as much as 70%) of certified earnings paid to workers, consisting of certain health insurance costs. 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 got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they received a PPP loan. Nevertheless, the same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, enabling eligible employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers an opportunity for services to modify prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, generally Form 941. The excess can be refunded to the employer if the credit goes beyond the amount of employment taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have evolved over time. The very best course of action is to talk to a tax expert or go to the official IRS website for the most in-depth and up-to-date info relating to the ERC, consisting of any current legislative modifications or updates.
To receive the ERC, a business should satisfy one of the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. Federal government entities and organizations that received a PPP loan might have constraints on claiming the credit.
The procedure for claiming the ERC includes completing the required forms and consisting of the credit on your employment income tax return (generally Type 941). The exact time it requires to process the credit can vary based on numerous elements, including the complexity of your company and the work of the IRS. It’s recommended to consult with a tax professional for guidance particular to your situation.
There are several business that can help with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these business straight to ask about their fees and services.
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 essential to speak with a tax professional or go to the official internal revenue service site for the most accurate and updated information relating to eligibility, declaring treatments, and offered assistance.
Less than 100. If the employer had 100 or less workers typically in 2019, then the credit is based.
on wages paid to all employees 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. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just money payments however likewise a part of the expense of company.
supplied healthcare. Employee Retention Credit Cares
Payment.
Companies can be immediately reimbursed for the credit by lowering the amount of payroll taxes they.