Lets talk first about Employee Retention Credit Hotline :
Our group here what do these people doing everyone in this room is assisting teach individuals about ERC and uh always supply a beautiful breakfast and have people truly find out about the program we ought to 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 numerous countless dollars literally Kevin numerous 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 just start to take a look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I indicate consider how many actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you understand when you
get this you know the check is gone for sure and that’s when they pay so they do not pay anything till they actually get the cash 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 genuinely rely on Wonder trust that the process has actually been ended up and how many you think you have actually processed considering that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you require you require professionals 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 Terrific here you’re at my YouTube channel we’re talking about something really important today the employee retention credit which the majority of you have actually never ever heard of I certainly hadn’t heard of it till very recently and discovered a lot about it since this is probably the lowest expense of capital for any small company anywhere
anytime if you have employees 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 Ideas 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 simply call your bank manager and state give 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 have actually become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing very soon you got to learn everything about it let’s talk employee 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 provided organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund okay go on sorry I simply need to make certain we got that point I suggest that’s a big difference a loan versus money cash I like money money that’s what we’re talking 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 lovely difficult check in the mail where you get actual money from the IRS all right so let’s speak about how it works since it sounds like to me if it’s a if it’s staff member 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 people on the cap table not for shareholders it’s for staff members right you needed to have owned a business however it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 staff members 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 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. okay so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part money how much can you get back per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to an optimum of 7 thousand per quarter how did that happen um they simply altered the rules in.
2021 versus since the chaos of the pandemic so they wanted to even get more to keep those employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 up to 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caveat here the PPP cash would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment 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 substantial obviously now the big concern is why does nobody know about this due to the fact that appearance when I initially found out about this when I first fulfilled Josh you understand I’ve got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in business owners of which numerous suffered through the pandemic when I initially found out about this I called BS I do not believe it due to the fact that I use 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 should have and we used them wisely to stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my politician pals Guv Senators they didn’t know about it I indicate that’s how you know that’s how misinformation is that there’s no info out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does nobody know about the worker retention credit you understand what’s interesting you’re speaking about the banks Kevin since in the PPP loan process the federal government made it really clear that if you desired 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 procedure that’s all um and here there was turmoil because keep in mind in the initial 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 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 any person about how to.
do this does your CFO know how to do this not really she or he’s never done it before do the banks do it nope the banks do not 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 prior to unless you have an account that went into this service and bottom line my firm Kevin has stayed in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose service is totally or partially suspended.
decline by more than 50%.
1. The credit is readily available to all companies despite size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’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 below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying earnings varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing assistance usually offer competence and support to assist companies navigate the intricate process of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Hotline
Eligibility Evaluation: These business will examine your service’s eligibility for the ERC based on aspects such as your market, earnings, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can claim, they can help determine.
Documentation and Calculation: ERC filing services will help in collecting the needed paperwork, such as payroll records and financial statements, to support your claim. They will also help determine the credit quantity based upon eligible earnings and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can examine your previous payroll records and financials to identify prospective opportunities for retroactive credits. They can help you modify prior tax returns to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the necessary types and documentation on your behalf. This consists of finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have actually progressed with time. These business stay updated with the current modifications and ensure that your filings adhere to the most present guidelines. They can also offer ongoing assistance if the internal revenue service requests extra info or performs an audit related to your ERC claim.
It is very important to research and veterinarian any company providing ERC filing support to guarantee their trustworthiness and knowledge. Look for recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax professionals who offer ERC submitting assistance.
Remember that while these companies can offer valuable help, it’s always a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified choices and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage companies to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit services, tax-exempt companies, and specific governmental entities. To certify, employers must fulfill one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As pointed out earlier, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease 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 right away 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 (as much as 70%) of certified earnings paid to workers, including specific health plan expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got an Income Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. The exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision offers an opportunity for services to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, usually Kind 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the company.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have evolved with time. The very best strategy is to seek advice from a tax expert or check out the official IRS website for the most updated and comprehensive information concerning the ERC, including any current legislative modifications or updates.
To qualify for the ERC, a company needs to fulfill among the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. For 2021, a substantial decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease 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 organizations of all sizes, including tax-exempt organizations, however there are some exceptions. For instance, government entities and organizations that got a PPP loan may have constraints on declaring the credit.
The procedure for claiming the ERC includes completing the required forms and consisting of the credit on your work tax return (normally Kind 941). The exact time it requires to process the credit can differ based on several aspects, including the complexity of your service and the work of the internal revenue service. It’s advised to consult with a tax professional for assistance particular to your situation.
There are several companies that can assist with the process of declaring the ERC. Some well-known companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information offered here is based upon general understanding and might not reflect the most recent updates or modifications to the ERC. It is very important to speak with a tax professional or visit the main internal revenue service site for the most precise and up-to-date info regarding eligibility, claiming procedures, and readily available assistance.
Less than 100. If the company had 100 or fewer workers usually in 2019, then the credit is based.
on earnings paid to all employees whether they in fact worked or not. To put it simply, 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 company had more than 100 employees usually in 2019, then the credit is.
enabled only for salaries paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply money payments but likewise a portion of the expense of employer.
supplied healthcare. Employee Retention Credit Hotline
Companies can be immediately reimbursed for the credit by minimizing the quantity of payroll taxes they.