Lets talk first about Employee Retention Credit In Us :
Our team here what do these men doing everybody in this space is helping teach people about ERC and uh constantly provide a beautiful breakfast and have people really find out about the program we must head to the room where we are able to display a few of the checks that we are getting for companies and I ‘d like 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 verifying that the check is on the method I indicate you know if you just begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I indicate think about 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 confirmed the numbers are validated 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 understand the check is opted for sure and that’s when they pay so they do not pay anything until they in fact get the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their checking account and they can genuinely rely on Wonder trust that the process has been finished and the number of you think you’ve processed given that you began this we have to do with 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 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 talking about something truly crucial today the staff member retention credit which the majority of you have actually never ever heard of I certainly hadn’t become aware of it up until really recently and learned a lot about it since this is most likely the lowest cost of capital for any small company 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 Ideas they’re the largest 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 supervisor and say give me a loan it doesn’t 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 become yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out everything 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 came up with the cares Act and the cares act provided businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund fine go on sorry I just have to make sure we got that point I indicate that’s a huge difference a loan versus cash cash I like money money that’s what we’re discussing 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 beautiful tough check in the mail where you get real cash from the IRS all right so let’s speak about how it works because it sounds like to me if it’s a if it’s employee retention credit that person needed to be an employee so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for workers right you had to have actually owned a company however it’s based upon you having W-2 staff members 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 need to be on payroll for the first six months of 2021 on the W-2 proper so there were 6 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 two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 during 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 six quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that the turmoil 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 as much as 5 thousand Max and after that what happens 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 6 thousand dollars per staff member that is since that’s a lot of money it is now there’s a caveat here the PPP cash would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere 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 big clearly now the big concern is why does no one understand about this due to the fact that look when I initially found out about this when I first satisfied Josh you know I’ve got great deals of financial investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make many many financial investments in business owners of which numerous suffered through the pandemic when I first heard about this I called BS I do not believe it since I use 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 should have and we used them sensibly to survive during the pandemic so when I heard about this I stated nah it can’t be true however when I dug around I even contacted us to my politician pals Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how false information is that there’s no information out there then a lot 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 understand about the staff member retention credit you understand what’s interesting you’re discussing the banks Kevin because in the PPP loan process 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was chaos since remember in the original cares act you could refrain from doing both programs so if you had done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were not doing ERC because 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 understand how to do this not actually 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 a few of them are doing it as a payroll company your accountant 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 since 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big business clients have actually worked with bottom line to recuperate other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
company whose company is fully or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Schedule.
1. The credit is available to all employers despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. When the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether a company had, typically, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing help normally offer competence and assistance to assist companies browse the complicated process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit In Us
Eligibility Assessment: These companies will examine your company’s eligibility for the ERC based on factors such as your market, revenue, and operations. They can help determine if you satisfy the requirements for the credit and recognize the maximum credit amount you can declare.
Documentation and Estimation: ERC filing services will help in gathering the essential paperwork, such as payroll records and financial declarations, to support your claim. They will also help determine the credit quantity based upon eligible incomes and other certifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can review your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can help you amend previous tax returns to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the required kinds and documents in your place. This includes finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed in time. These business stay updated with the latest modifications and make sure that your filings adhere to the most present standards. If the IRS requests extra info or conducts an audit associated to your ERC claim, they can also offer continuous assistance.
It’s important to research study and veterinarian any business using ERC filing assistance to ensure their reliability and expertise. Search for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax experts who offer ERC submitting assistance.
Remember that while these business can provide valuable support, it’s always an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will help you make informed decisions and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to retain and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, companies must meet one of two criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. As pointed out earlier, for 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the very 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 company’s share of Social Security taxes. The credit quantity amounts to a portion (up to 70%) of certified salaries paid to staff members, including certain health plan 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: Initially, organizations that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they received a PPP loan. However, the very same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, enabling qualified employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to change prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, normally Kind 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the company.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually evolved in time. The best strategy is to speak with a tax professional or visit the official internal revenue service site for the most up-to-date and detailed details concerning the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a company needs to meet one of the following criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The 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 very 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% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and services that received a PPP loan might have restrictions on declaring the credit.
The process for declaring the ERC includes finishing the necessary types and consisting of the credit on your employment income tax return (usually Kind 941). The exact time it requires to process the credit can differ based on numerous elements, including the intricacy of your service and the workload of the IRS. It’s recommended to speak with a tax expert for guidance particular to your circumstance.
There are a number of business that can help with the procedure of claiming the ERC. Some well-known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based on basic understanding and may not reflect the most recent updates or changes to the ERC. It is necessary to talk to a tax expert or go to the official IRS website for the most accurate and current info regarding eligibility, declaring treatments, and readily available support.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on earnings paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers 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 employees typically in 2019, then the credit is.
permitted only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “incomes” consists of not just money payments but also a portion of the expense of company.
offered healthcare. Employee Retention Credit In Us
Payment.
Employers can be right away compensated for the credit by minimizing the amount of payroll taxes they.