Lets talk first about Employee Retention Credit Full Time Employee :
Our group here what do these people doing everybody in this space is assisting teach people about ERC and uh constantly provide a lovely breakfast and have individuals truly learn about 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 want to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the method I imply you understand if you simply start to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I mean think of how many actual customers that went through the program yeah this is the very end this is the party 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 consumer so that’s how you have the ability to track it you know when you
get this you know the check is opted for sure which’s when they pay so they don’t pay anything till they in fact receive the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their bank account and they can really rely on Wonder trust that the procedure has actually been completed and the number of you believe you have actually processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you need you need 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 Terrific here you’re at my YouTube channel we’re speaking about something actually essential today the staff member retention credit which most of you have actually never ever become aware of I definitely had not heard of it up until really just recently and discovered a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I have actually 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 contact 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 representative for this I enjoy this program it’s disappearing soon you got to find out all 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 developed the cares Act and the cares act provided companies 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 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money cash payroll tax refund fine go on sorry I simply need to make sure we got that point I suggest that’s a huge difference a loan versus money cash I like money cash that’s what we’re speaking about okay 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 difficult check in the mail where you get real cash from the internal revenue service 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 person needed 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 owned a business but it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 employees 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 six months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my favorite part cash just how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s income to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because 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 up to five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of money it is now there’s a caution here the PPP money would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state 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 IRS so it’s substantial undoubtedly now the big question is why does no one know about this since appearance when I initially became aware of this when I first met Josh you know I have actually got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many many 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 really easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them wisely to stay alive throughout the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my political leader pals 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 info out there then a lot of individuals informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does no one learn about the employee retention credit you know what’s fascinating you’re speaking about the banks Kevin due to the fact that 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 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 process process that’s all um and here there was mayhem due to the fact that remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they changed 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 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 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 business your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has actually stayed in business given 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 business customers have worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose business is completely or partly suspended.
decrease by more than 50%.
1. The credit is offered to all companies despite size including tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The amount 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 before December 31, 2020.
The meaning of certifying incomes differs by whether a company had, typically, more or less than.
100 workers in 2019.
Business that focus on ERC filing support normally supply knowledge and support to assist companies browse the complicated process of claiming the credit. They can use different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Full Time Employee
Eligibility Assessment: These business will assess your business’s eligibility for the ERC based on aspects such as your market, income, and operations. They can assist figure out if you fulfill the requirements for the credit and recognize the optimum credit quantity you can claim.
Paperwork and Estimation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit quantity based upon eligible salaries and other certifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the needed kinds and documentation in your place. This includes completing Kind 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have actually developed in time. These companies remain upgraded with the latest changes and ensure that your filings adhere to the most existing guidelines. They can also supply continuous assistance if the internal revenue service demands extra information or conducts an audit related to your ERC claim.
It is very important to research and vet any business offering ERC filing assistance to ensure their trustworthiness and know-how. Look for recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax experts who provide ERC filing support.
Keep in mind that while these business can provide important help, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate organizations to retain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To qualify, employers must fulfill one of two criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly 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 (up to 70%) of qualified incomes paid to employees, including certain health insurance expenses. 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 received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they received a PPP loan. The same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, enabling qualified companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Type 941. The excess can be refunded to the company if the credit goes beyond the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility requirements have actually developed gradually. The best strategy is to talk to a tax expert or visit the official IRS website for the most up-to-date and in-depth information concerning the ERC, consisting of any recent legal modifications or updates.
To qualify for the ERC, a business should fulfill one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and companies that received a PPP loan may have constraints on claiming the credit.
The process for claiming the ERC involves completing the needed forms and including the credit on your work income tax return (usually Form 941). The exact time it requires to process the credit can differ based on numerous elements, consisting of the intricacy of your company and the workload of the IRS. It’s suggested to seek advice from a tax expert for guidance specific to your situation.
There are several companies that can help with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll company. Some popular companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and get in touch with these companies directly to inquire about their charges and services.
Please keep in mind that the info supplied here is based on basic knowledge and may not show the most current updates or changes to the ERC. It is essential to talk to a tax professional or go to the official internal revenue service site for the most accurate and up-to-date info relating to eligibility, claiming treatments, and readily available support.
Less than 100. If the company had 100 or less employees typically in 2019, then the credit is based.
on earnings paid to all workers whether they actually worked or not. In other words, even if the.
workers worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
allowed only for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not just cash payments however likewise a part of the cost of company.
provided healthcare. Employee Retention Credit Full Time Employee
Employers can be immediately compensated for the credit by decreasing the amount of payroll taxes they.