Lets talk first about Employee Retention Credit For Disaster Zones :
Our group here what do these guys doing everybody in this room is helping teach people about ERC and uh constantly provide a beautiful breakfast and have individuals really learn about the program we must head to the room where we have the ability to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I mean you know if you just begin to look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I indicate think about 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 confirmed the numbers are verified 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 gone for sure which’s when they pay so they do not pay anything up until they in fact get the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their bank account and they can truly rely on Wonder trust that the process has been finished and the number of you believe you’ve 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 and that’s what you require you need 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 Wonderful here you’re at my YouTube channel we’re speaking about something actually crucial today the employee retention credit which the majority of you have actually never ever heard of I certainly hadn’t heard of it up until very just recently and learned a lot about it since this is probably the most affordable expense of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just phone 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 us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money money payroll tax refund okay go on sorry I simply need to ensure we got that point I indicate that’s a huge difference a loan versus cash money I like money money that’s what we’re talking about 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 beautiful tough check in the mail where you get real money from the IRS all right so let’s speak about how it works because it seems like to me if it’s a if it’s worker retention credit that individual had 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 workers right you needed to have owned a company but it’s based upon you having W-2 staff members 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 first six months of 2021 on the W-2 correct 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 two and three of 2021. fine 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 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 employee’s income to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to a maximum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the mayhem 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 then what takes place 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP money would have to be lowered 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 money someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred employees 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 first became aware of this when I first met Josh you know I’ve got great deals of investments in great deals of business I’m a major supporter for entrepreneurship in America and make numerous numerous investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I do not think it since 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 and that were well should have and we used them wisely to stay alive throughout the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even called to my politician buddies Guv Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no information out there then a lot 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 no one learn about the staff member retention credit you understand what’s intriguing you’re discussing the banks Kevin because in the PPP loan process 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was turmoil because remember in the original cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they altered 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 government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not really he or she’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 business your accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this organization and bottom line my company Kevin has actually stayed in business because 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge big business 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 property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Because of COVID-19 or whose gross receipts, company whose organization is completely or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a comparable 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 salaries paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying incomes varies by whether an employer had, on average, basically than.
100 staff members in 2019.
Business that specialize in ERC filing help normally supply know-how and support to help services navigate the complex procedure of declaring the credit. They can use different services, including:.
How is the employee retention credit calculated? Employee Retention Credit For Disaster Zones
Eligibility Assessment: These companies will examine your organization’s eligibility for the ERC based upon elements such as your market, profits, and operations. They can assist identify if you meet the requirements for the credit and recognize the optimum credit amount you can declare.
Documentation and Estimation: ERC filing services will help in collecting the essential documentation, such as payroll records and monetary declarations, to support your claim. They will likewise help compute the credit amount based upon qualified earnings and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can review your past payroll records and financials to recognize prospective chances for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the required types and documentation on your behalf. This consists of finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved gradually. These business stay upgraded with the most recent changes and make sure that your filings comply with the most existing standards. If the IRS requests extra details or conducts an audit related to your ERC claim, they can also offer ongoing assistance.
It’s important to research study and veterinarian any company providing ERC filing help to guarantee their credibility and knowledge. Search for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who provide ERC submitting support.
Remember that while these companies can supply important support, it’s constantly a good idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed choices and ensure 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 measures. The objective of the ERC is to encourage organizations to keep and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To certify, employers should meet one of two requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined 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 instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a percentage (as much as 70%) of qualified salaries paid to workers, 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: Initially, services that received an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations 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 Arrangement: The ERC has been retroactively expanded and improved, permitting qualified employers to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to modify prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, typically Type 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the company.
It is necessary to note that the ERC provisions and eligibility criteria have actually evolved gradually. The best course of action is to seek advice from a tax expert or visit the main IRS website for the most in-depth and up-to-date details concerning the ERC, consisting of any recent legislative changes or updates.
To receive the ERC, an organization needs to 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 considerable decline in gross receipts. For 2021, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, federal government entities and services that received a PPP loan may have restrictions on declaring the credit.
The process for claiming the ERC includes completing the necessary types and consisting of the credit on your work income tax return (usually Type 941). The exact time it takes to process the credit can differ based upon numerous aspects, consisting of the intricacy of your service and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for guidance particular to your situation.
There are a number of business that can help with the process of declaring the ERC. Some well-known companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based upon basic knowledge and may not show the most current updates or changes to the ERC. It is essential to speak with a tax expert or go to the official IRS website for the most current and precise information regarding eligibility, claiming procedures, and readily available help.
Less than 100. The credit is based if the employer had 100 or less staff members 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 got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
enabled only for salaries paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not just money payments however likewise a portion of the expense of employer.
offered healthcare. Employee Retention Credit For Disaster Zones
Companies can be instantly compensated for the credit by minimizing the amount of payroll taxes they.