Lets talk first about Employee Retention Credit Individuals :
Our group here what do these men doing everybody in this room is helping teach individuals about ERC and uh always supply a stunning breakfast and have people actually discover the program we need to head to the space where we have the ability to show a few of the checks that we are getting for business and I wish to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I suggest you know if you simply begin to 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 mean it’s simply I indicate consider the number of real clients 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 validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
receive this you understand the check is chosen 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 until this letter is confirmed the check is on the method they transfer it into their savings account and they can really rely on Wonder trust that the process has actually been completed and how many you think you’ve processed because you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’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 Terrific here you’re at my YouTube channel we’re discussing something really essential today the worker retention credit which the majority of you have actually never become aware of I definitely hadn’t become aware of it up until really just recently and found out a lot about it due to the fact that this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder 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 up your bank supervisor and state give me a loan it doesn’t 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 spokesperson for this I enjoy this program it’s disappearing very soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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.
correct the money cash payroll tax refund alright go on sorry I simply need to make sure we got that point I suggest that’s a huge distinction a loan versus money money 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 beautiful tough check in the mail where you get real cash from the internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker retention credit that person needed to be a worker so I’m going to make the Presumption this money 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 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 six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of 7 thousand per quarter how did that happen um they just changed 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 five thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a lot of money it is now there’s a caveat here the PPP money would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average 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 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 huge obviously now the big concern is why does nobody learn about this due to the fact that look when I first found out about this when I first fulfilled Josh you know I’ve got lots of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous numerous 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 utilize the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well should have and we used them carefully to survive during the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my politician buddies Governor Senators they didn’t understand about it I suggest that’s how you know that’s how false information is that there’s no details out there then a bunch of individuals told 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 understand about the employee retention credit you know what’s intriguing you’re speaking about the banks Kevin because 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was mayhem due to the fact that remember 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 original program and when they changed the law in 2021 the banks were refraining from 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 anybody about how to.
do this does your CFO understand how to do this not really she or he’s never done it in the past do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll business your accountant no your accounting professional’s never done this before unless you have an account that went into this company and bottom line my firm Kevin has stayed in business since 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big huge corporate clients have worked with bottom line to recover other government programs we have actually done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Since of COVID-19 or whose gross receipts, employer whose organization is completely or partially suspended.
decline by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt companies. There are.
only two 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 calculated each.
calendar quarter– Either.
o the employer’s service is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. As soon as 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 salaries paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying earnings differs by whether a company had, usually, basically than.
100 employees in 2019.
Business that focus on ERC filing assistance normally supply know-how and support to help services browse the complex procedure of claiming the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Individuals
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based on elements such as your industry, profits, and operations. They can assist figure out if you meet the requirements for the credit and determine the maximum credit quantity you can claim.
Paperwork and Computation: ERC filing services will help in gathering the required documentation, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit amount based on eligible salaries and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can examine your past payroll records and financials to recognize prospective chances for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the required types and paperwork in your place. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have evolved over time. These companies stay updated with the latest modifications and guarantee that your filings adhere to the most current standards. If the IRS requests additional information or conducts an audit associated to your ERC claim, they can also offer ongoing support.
It is very important to research study and veterinarian any company using ERC filing support to guarantee their credibility and proficiency. Search for recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax specialists who offer ERC filing assistance.
Remember that while these companies can provide important help, it’s constantly a great concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure precise 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 objective of the ERC is to motivate services to keep 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 qualified companies, including for-profit organizations, tax-exempt organizations, and particular governmental entities. To qualify, employers need to meet one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As discussed previously, for 2021, a substantial decrease is specified 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 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 quantity amounts to a percentage (approximately 70%) of certified wages paid to employees, including specific health insurance expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. However, the very same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, permitting qualified companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision provides a chance for organizations to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Kind 941. If the credit exceeds the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It’s important to note that the ERC arrangements and eligibility requirements have evolved with time. The best course of action is to seek advice from a tax expert or visit the official internal revenue service site for the most up-to-date and in-depth details relating to the ERC, consisting of any recent legislative changes or updates.
To qualify for the ERC, a service should meet one of the following criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt companies, but there are some exceptions. Federal government entities and organizations that got a PPP loan might have limitations on declaring the credit.
The process for declaring the ERC involves completing the necessary types and including the credit on your employment tax return (normally Type 941). The exact time it requires to process the credit can differ based upon numerous factors, consisting of the complexity of your service and the workload of the IRS. It’s recommended to speak with a tax professional for guidance particular to your situation.
There are a number of companies that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some widely known companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these companies directly to ask about their costs and services.
Please note that the info supplied here is based on basic knowledge and might not reflect the most recent updates or changes to the ERC. It is essential to speak with a tax professional or check out the main internal revenue service website for the most accurate and up-to-date info relating to eligibility, declaring treatments, and readily available support.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on earnings paid to all employees 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. If the employer had more than 100 employees usually in 2019, then the credit is.
enabled only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “incomes” includes not just cash payments however likewise a portion of the expense of employer.
provided health care. Employee Retention Credit Individuals
Companies can be right away compensated for the credit by lowering the amount of payroll taxes they.