Lets talk first about Employee Retention Credit Heroes Act :
Our team here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh constantly supply a beautiful breakfast and have individuals actually learn more about the program we must head to the space 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 millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the method I suggest you understand if you simply begin to 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 simply I suggest think about 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 validated 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’re able to track it you know when you
get this you know the check is gone for sure which’s when they pay so they don’t pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything till this letter is validated the check is on the way they deposit it into their savings account and they can genuinely trust Wonder trust that the procedure has been completed and how many you think you have actually processed because you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you need you need 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 Wonderful here you’re at my YouTube channel we’re discussing something actually important today the staff member retention credit which most of you have actually never ever become aware of I definitely had not heard of it till extremely recently and found out a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have workers in between 5 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 Concepts 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 simply call your bank manager and state offer me a loan it does not work there’s not a loan it’s an application and Josh is going to tell us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund fine go on sorry I simply need to make certain we got that point I suggest that’s a huge difference a loan versus cash money I like cash cash that’s what we’re speaking 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 beautiful difficult check in the mail where you get real money from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have actually owned a service however it’s based on you having W-2 workers 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 first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s wage to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus because the turmoil of the pandemic so they wished 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 after that 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 5 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 cash would need 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 on average Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s state 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 IRS so it’s huge undoubtedly now the huge concern is why does no one understand about this due to the fact that appearance when I first became aware of this when I first met Josh you understand I’ve got great deals of financial investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make many lots of investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it because I utilize the PPP we went through the money 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 carefully to stay alive during the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician good friends Guv Senators they didn’t understand about it I indicate that’s how you understand that’s how false information is that there’s no details out there then a bunch of people told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one learn about the employee retention credit you understand what’s fascinating you’re discussing the banks Kevin since in the PPP loan procedure 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 huge banks in our country and they would process procedure 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 chaos since keep in mind in the original cares act you could not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO understand how to do this not truly she or he’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 accounting professional no your accountant’s never ever done this before unless you have an account that went into this company and bottom line my company Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge big business clients have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
employer whose business is totally or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is offered to all employers no matter size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is fully 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. 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.
Computation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes differs by whether a company had, typically, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing support generally offer expertise and assistance to assist businesses browse the complex procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Heroes Act
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon aspects such as your market, earnings, and operations. They can help figure out if you satisfy the requirements for the credit and recognize the optimum credit amount you can claim.
Documentation and Estimation: ERC filing services will help in collecting the needed documentation, such as payroll records and monetary declarations, to support your claim. They will likewise assist compute the credit quantity based upon eligible wages and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can examine your past payroll records and financials to identify possible chances for retroactive credits. They can assist you amend prior income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the necessary kinds and documents in your place. This consists of finishing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have actually evolved over time. These business remain updated with the latest modifications and make sure that your filings abide by the most current standards. They can likewise provide ongoing support if the IRS demands extra information or carries out an audit related to your ERC claim.
It is necessary to research and vet any company providing ERC filing help to ensure their trustworthiness and proficiency. Search for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who provide ERC filing support.
Remember that while these business can offer important assistance, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified choices and guarantee precise 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 motivate companies to maintain and pay their employees throughout 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 qualified employers, consisting of for-profit businesses, tax-exempt organizations, and certain governmental entities. To qualify, companies must satisfy one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As pointed out earlier, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts 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 percentage (approximately 70%) of qualified wages paid to employees, including particular health insurance expenditures. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they got a PPP loan. However, the 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 boosted, allowing qualified employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies a chance for businesses to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Form 941. The excess can be reimbursed to the company if the credit goes beyond the amount of work taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have progressed in time. The best course of action is to seek advice from a tax professional or visit the official IRS site for the most comprehensive and up-to-date details regarding the ERC, consisting of any recent legal changes or updates.
To qualify for the ERC, an organization needs to meet one of the following requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. Federal government entities and companies that got a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the essential kinds and including the credit on your work tax return (typically Kind 941). The exact time it requires to process the credit can vary based on several aspects, consisting of the intricacy of your business and the workload of the internal revenue service. It’s suggested to talk to a tax professional for assistance particular to your situation.
There are a number of business that can help with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some popular companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these companies directly to inquire about their services and charges.
Please keep in mind that the details supplied here is based on basic understanding and may not show the most current updates or changes to the ERC. It is necessary to seek advice from a tax professional or check out the main IRS site for the most accurate and up-to-date info relating to eligibility, claiming treatments, and offered help.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on salaries paid to all staff members whether they actually worked or not. In other words, even if the.
workers worked full-time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
allowed only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not just money payments however likewise a portion of the expense of employer.
provided health care. Employee Retention Credit Heroes Act
Employers can be right away repaid for the credit by minimizing the quantity of payroll taxes they.