Lets talk first about Employee Retention Credit Change Of Ownership :
Our team here what do these people doing everyone in this room is assisting teach individuals about ERC and uh constantly supply a gorgeous breakfast and have people actually learn about the program we need to head to the room where we are able to show a few of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I suggest you understand if you simply start to 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 mean it’s simply I mean consider the number of real customers 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 internal revenue service heading to the client so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure and that’s when they pay so they do not pay anything until they really get the money they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they deposit it into their savings account and they can really rely on 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 six billion dollars wow so clearly they know what they’re doing and that’s what you require you need specialists 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 Fantastic here you’re at my YouTube channel we’re speaking about something really important today the employee retention credit which the majority of you have actually never ever heard of I definitely had not become aware of it up until really recently and discovered a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call up your bank supervisor and say offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I enjoy this program it’s disappearing very soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund alright go on sorry I simply need to make sure we got that point I suggest that’s a big difference a loan versus cash money I like cash 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 beautiful difficult check in the mail where you get real money from the internal revenue service all right so let’s speak 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 a staff member so I’m going to make the Presumption 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 owned a service but it’s based on 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 very first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and 3 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 favorite part cash just how much can you get back per employee 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 income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wanted 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 five thousand Max and after that what happens 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 worker that is because that’s a lot of cash it is now there’s a caution here the PPP cash would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s say hypothetically you owned a restaurant 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 big certainly now the huge concern is why does nobody know about this since look when I initially became aware of this when I initially met Josh you know I’ve got great deals of financial investments in great deals of business I’m a major supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially found out about this I called BS I don’t believe it because I utilize 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 should have and we used them sensibly to survive throughout the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even called to my politician buddies Governor Senators they didn’t learn about it I mean that’s how you know that’s how misinformation is that there’s no details out there then a bunch of people informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s fascinating you’re discussing the banks Kevin due to the fact that in the PPP loan process the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process procedure 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 keep in mind in the initial cares act you might not do both programs so if you had actually done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not truly he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this before unless you have an account that entered into this company and bottom line my firm Kevin has actually been in business because 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have actually dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
company whose company is fully or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Schedule.
1. The credit is offered to all employers no matter size consisting of tax exempt companies. There are.
only 2 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 satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. Once the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying 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 qualifying earnings differs by whether a company had, usually, more or less than.
100 staff members in 2019.
Business that concentrate on ERC filing help usually provide expertise and support to help services navigate the intricate process of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Change Of Ownership
Eligibility Assessment: These companies 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 recognize the maximum credit amount you can claim.
Documentation and Computation: ERC filing services will help in gathering the essential documentation, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit amount based upon qualified salaries and other certifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can evaluate your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you amend previous tax returns to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the required types and documentation on your behalf. This includes finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have progressed gradually. These companies stay upgraded with the most recent changes and guarantee that your filings abide by the most existing guidelines. They can also offer continuous assistance if the IRS demands extra information or carries out an audit related to your ERC claim.
It is essential to research and vet any business using ERC filing help to guarantee their reliability and knowledge. Search for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who provide ERC filing assistance.
Keep in mind that while these business can offer important assistance, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and ensure 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 procedures. The goal of the ERC is to encourage companies to keep and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, companies need to fulfill one of two requirements:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As pointed out 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 substantial decline is specified as a 20% decline in gross receipts compared to the exact 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 portion (approximately 70%) of certified salaries paid to staff members, consisting of certain health insurance expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they received a PPP loan. The very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, allowing eligible employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision offers an opportunity for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, normally Kind 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC provisions and eligibility requirements have progressed gradually. The best strategy is to consult with a tax professional or check out the official IRS website for the most in-depth and up-to-date info concerning the ERC, consisting of any recent legislative modifications or updates.
To get approved for the ERC, a service must fulfill one of the following requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is offered to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and organizations that got a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC involves completing the essential types and consisting of the credit on your work tax return (typically Kind 941). The exact time it requires to process the credit can vary based on numerous elements, including the intricacy of your organization and the work of the IRS. It’s advised to speak with a tax professional for guidance particular to your scenario.
There are numerous companies that can assist with the process of declaring the ERC. Some widely known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based on general knowledge and might not show the most recent updates or modifications to the ERC. It is very important to consult with a tax expert or check out the official internal revenue service website for the most up-to-date and accurate information concerning eligibility, claiming treatments, and available assistance.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on salaries paid to all staff members whether they in fact worked or not. To put it simply, even if the.
employees worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
allowed only for wages paid to workers who did not work during the calendar quarter.
In both cases, “salaries” includes not just cash payments however likewise a portion of the cost of company.
supplied health care. Employee Retention Credit Change Of Ownership
Payment.
Employers can be right away compensated for the credit by minimizing the quantity of payroll taxes they.