Lets talk first about Employee Retention Credit Insurance Reimbursement :
Our team here what do these guys doing everybody in this space is assisting teach people about ERC and uh always supply a stunning breakfast and have individuals actually find out about the program we should head to the space where we are able to display some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the method I suggest you understand if you just begin 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 just I mean think of 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 validated the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you understand when you
get this you know the check is gone for sure which’s when they pay so they don’t pay anything till they in fact get the cash they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they deposit it into their bank account and they can truly rely on Wonder trust that the procedure has been ended up and how many you believe you have actually processed since you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand 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 Terrific here you’re at my YouTube channel we’re discussing something actually important today the employee retention credit which most of you have never become aware of I certainly hadn’t become aware of it up until really just recently and discovered a lot about it because this is most likely the lowest cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just phone 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 all of us about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away very soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout 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 almost everybody it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund all right go on sorry I just have to make certain we got that point I mean that’s a big distinction a loan versus money cash I like money money that’s what we’re discussing 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 initial cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real cash from the internal revenue service all right so let’s discuss how it works since it seems 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 individuals on the cap table not for investors it’s for employees right you needed to have 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 qualified 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 appropriate so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay 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 money how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact 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 skyrocketed to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the chaos 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 come up with 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 because that’s a great deal of cash it is now there’s a caution here the PPP money would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge obviously now the huge question is why does nobody learn about this since appearance when I first heard about this when I first fulfilled Josh you know I have actually got great deals of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make lots of numerous investments in entrepreneurs of which lots of suffered through the pandemic when I first became aware of 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 utilized them sensibly to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader pals Guv Senators they didn’t learn about it I suggest that’s how you know that’s how false information is that there’s no info 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 know about the worker retention credit you know what’s fascinating you’re speaking about the banks Kevin since in the PPP loan procedure the federal government made it very clear that if you wanted 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 process that’s all um and here there was mayhem because keep in mind in the initial cares act you might refrain from doing both programs so if you had actually done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC since 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 actually he or she’s never 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 company your accounting professional no your accountant’s never ever done this before unless you have an account that entered into this company and bottom line my company Kevin has been in business because 2009 and we’ve been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate clients have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Since of COVID-19 or whose gross invoices, employer whose business is totally or partly suspended.
decline by more than 50%.
1. The credit is available to all employers regardless of size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying incomes varies by whether a company had, on average, basically than.
100 workers in 2019.
Business that concentrate on ERC filing support normally offer expertise and support to help companies browse the complex process of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Insurance Reimbursement
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based on aspects such as your market, earnings, and operations. If you meet the requirements for the credit and identify the maximum credit amount you can claim, they can help determine.
Documentation and Estimation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit amount based upon eligible earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can review your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and submit the necessary types and documents in your place. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have evolved in time. These business stay updated with the current changes and ensure that your filings comply with the most present standards. If the Internal revenue service requests additional info or conducts an audit associated to your ERC claim, they can likewise provide continuous support.
It’s important to research and vet any business using ERC filing assistance to ensure their credibility and competence. Try to find recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who provide ERC submitting assistance.
Remember that while these business can supply important support, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified choices and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate organizations to maintain and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, employers must satisfy one of two requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As mentioned previously, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline 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 amounts to a portion (up to 70%) of qualified wages paid to staff members, including certain health insurance expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they received a PPP loan. The exact same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, enabling eligible employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for organizations to amend prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Form 941. The excess can be reimbursed to the company if the credit surpasses the amount of employment taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have progressed gradually. The very best strategy is to consult with a tax professional or visit the main internal revenue service website for the most in-depth and up-to-date details regarding the ERC, consisting of any recent legal changes or updates.
To receive the ERC, a service must fulfill one of the following criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For example, federal government entities and companies that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC involves completing the essential kinds and consisting of the credit on your employment tax return (typically Form 941). The exact time it takes to process the credit can vary based upon numerous elements, including the complexity of your business and the work of the IRS. It’s suggested to talk to a tax expert for guidance particular to your situation.
There are several business that can assist with the procedure of claiming the ERC. Some well-known companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details provided here is based on basic understanding and may not reflect the most recent updates or modifications to the ERC. It is essential to consult with a tax professional or go to the main internal revenue service website for the most updated and precise information concerning eligibility, declaring procedures, and offered help.
Less than 100. If the company had 100 or fewer employees typically in 2019, then the credit is based.
on earnings paid to all workers whether they really 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. The credit is if the company had more than 100 workers on average in 2019.
permitted only for incomes paid to workers who did not work during the calendar quarter.
In both cases, “salaries” consists of not just cash payments but also a portion of the expense of company.
provided health care. Employee Retention Credit Insurance Reimbursement
Companies can be instantly repaid for the credit by reducing the quantity of payroll taxes they.