Lets talk first about Employee Retention Credit Disclosure :
Our team here what do these men doing everybody in this room is helping teach people about ERC and uh always offer a gorgeous breakfast and have individuals truly discover the program we should 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 numerous millions of dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I mean you understand if you simply start to take a look at some 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 clients 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 confirmed and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you’re able to track it you understand when you
get this you understand the check is gone for sure which’s when they pay so they don’t pay anything till they in fact get the money 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 savings account and they can really trust Wonder trust that the process has actually been completed and the number of you believe you’ve processed considering that you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you require 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 Fantastic here you’re at my YouTube channel we’re speaking about something really important today the worker retention credit which most of you have never become aware of I certainly hadn’t heard of it until really recently and found out a lot about it because this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members between five 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 call up your bank supervisor and say give me a loan it does not 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big distinction right there 2 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 alright go on sorry I just have to make sure we got that point I imply that’s a huge distinction a loan versus cash money I like cash money that’s what we’re discussing alright 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 tough check in the mail where you get actual money from the internal revenue service all right so let’s speak about 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 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 owned a service but it’s based upon you having W-2 workers in America not 10.99. so 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 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 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 how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the chaos 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 as much as 5 thousand Max and then what takes place 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 six thousand dollars per employee that is since that’s a great deal of money it is now there’s a caveat here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial clearly now the huge question is why does nobody know about this since appearance when I initially found out about this when I initially met Josh you know I’ve got great deals of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make many lots of investments in entrepreneurs of which numerous suffered through the pandemic when I initially heard about this I called BS I do not think it due to the fact that I utilize the PPP we went through the cash center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we utilized them sensibly to survive during the pandemic so when I heard about this I stated nah it can’t hold true however when I dug around I even called to my politician buddies Guv Senators they didn’t understand about it I suggest that’s how you know that’s how false information is that there’s no details out there then a bunch of individuals told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody know about the staff member retention credit you know what’s intriguing you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it very clear that if you desired 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 simply process procedure that’s all um and here there was chaos due to the fact that keep in mind in the original cares act you might not do both programs so if you had actually done PPP you could not do ERC in the initial program and when they changed 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 federal government never made it clear to any person about how to.
do this does your CFO know how to do this not really he or she’s never ever done it previously 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 company your accountant no your accountant’s never ever done this before unless you have an account that entered into this organization and bottom line my company Kevin has actually stayed in business given that 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our huge big business clients have dealt with bottom line to recover other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, company whose organization is totally or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is available to all companies no matter size consisting of tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. Once the.
employer’s gross invoices exceed 80% of an equivalent 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 qualifying wages paid up to $10,000 in overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages differs by whether a company had, typically, basically than.
100 workers in 2019.
Business that concentrate on ERC filing support generally provide know-how and assistance to assist services navigate the intricate process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Disclosure
Eligibility Assessment: These business will examine your organization’s eligibility for the ERC based on aspects such as your market, revenue, and operations. They can assist figure out if you fulfill the requirements for the credit and determine the optimum credit amount you can claim.
Documentation and Computation: ERC filing services will help in collecting the needed documentation, such as payroll records and monetary declarations, to support your claim. They will also assist calculate the credit quantity based on eligible earnings and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can examine your past payroll records and financials to determine potential chances for retroactive credits. They can assist you modify prior tax returns to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the needed kinds and paperwork in your place. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually progressed in time. These companies stay upgraded with the latest changes and ensure that your filings abide by the most existing guidelines. If the IRS requests additional information or performs an audit related to your ERC claim, they can also provide continuous assistance.
It is essential to research and vet any company offering ERC filing support to ensure their credibility and expertise. Try to find recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax specialists who use ERC filing support.
Keep in mind that while these business can offer valuable assistance, it’s always a great concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure 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 goal of the ERC is to encourage organizations to keep and pay their employees throughout 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 companies, including for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, companies need to meet one of two requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As pointed out previously, for 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the very 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 (up to 70%) of certified earnings paid to workers, consisting of specific health insurance costs. The optimum 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 got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. However, the exact same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, allowing eligible companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to amend prior-year tax returns and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work tax returns, typically Kind 941. The excess can be refunded to the company if the credit exceeds the amount of work taxes owed.
It is very important to note that the ERC provisions and eligibility criteria have actually evolved gradually. The very best course of action is to speak with a tax professional or go to the official internal revenue service website for the most up-to-date and detailed information relating to the ERC, including any current legislative changes or updates.
To qualify for the ERC, a service must meet one of the following requirements:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and organizations that received a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC involves finishing the required forms and consisting of the credit on your work income tax return (generally Kind 941). The exact time it takes to process the credit can vary based on several factors, including the intricacy of your company and the workload of the internal revenue service. It’s advised to talk to a tax expert for guidance specific to your circumstance.
There are numerous companies that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some popular companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these business straight to inquire about their fees and services.
Please note that the details provided here is based upon general understanding and might not show the most recent updates or modifications to the ERC. It is essential to seek advice from a tax expert or visit the main internal revenue service website for the most accurate and up-to-date information concerning eligibility, declaring procedures, and offered support.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on wages paid to all employees whether they really worked or not. Simply put, even if the.
staff members worked full time and got paid for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
permitted just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply money payments but likewise a part of the expense of employer.
supplied healthcare. Employee Retention Credit Disclosure
Payment.
Employers can be instantly compensated for the credit by lowering the quantity of payroll taxes they.