Lets talk first about Employee Retention Credit Los Angeles :
Our team here what do these people doing everybody in this space is assisting teach people about ERC and uh always provide a beautiful breakfast and have people really learn more 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 business and I want to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I suggest you understand if you just begin to 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 indicate it’s simply I indicate think of the number of real customers 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 validated 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
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything until they really receive the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their savings account and they can truly trust Wonder trust that the procedure has been completed and how many you think you have actually processed because 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 require you need 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly important today the worker retention credit which most of you have actually never become aware of I certainly had not become aware of it up until very just recently and discovered a lot about it due to the fact that this is probably the most affordable expense of capital for any small company anywhere
anytime if you have workers 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply call up your bank manager 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 us all about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I like this program it’s going away very soon you got to learn 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 organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody 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 money payroll tax refund all right go on sorry I simply need to ensure we got that point I suggest that’s a huge distinction a loan versus money cash I like money cash that’s what we’re talking about 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 lovely tough check in the mail where you get actual money from the internal revenue service all right so let’s talk about 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 staff member so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for staff members right you had to have owned an organization but it’s based on you having W-2 staff members 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 6 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 two three and 4 of 2020 and you had quarters one two and three of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you get back per employee that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the employee’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since 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 then what takes place 21 000 Max in 2021 oh that’s how you come up with 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 because that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be minimized 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 usually Kevin is if you took PPP money someplace around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred workers 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 concern is why does no one understand about this due to the fact that look when I first became aware of this when I initially fulfilled Josh you understand I’ve got lots of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make many many financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I do not think it because 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 been worthy of 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 but when I dug around I even contacted us to my political leader friends Guv Senators they didn’t understand about it I mean that’s how you know that’s how misinformation is that there’s no details out there then a lot of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody know about the staff member retention credit you know what’s fascinating you’re talking about the banks Kevin because in the PPP loan process the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 just process process that’s all um and here there was mayhem due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had 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 because 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 understand how to do this not actually she or he’s never done it previously 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 accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this company and bottom line my company Kevin has been in business because 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our huge big business clients have actually dealt with bottom line to recover other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
employer whose service is completely or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is available to all companies regardless of size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries varies by whether a company had, usually, more or less than.
100 employees in 2019.
Business that specialize in ERC filing assistance usually supply know-how and support to assist businesses navigate the complicated process of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Los Angeles
Eligibility Evaluation: These business will evaluate your company’s eligibility for the ERC based on aspects such as your market, earnings, and operations. They can assist identify if you fulfill the requirements for the credit and determine the optimum credit amount you can declare.
Paperwork and Computation: ERC filing services will help in gathering the needed documentation, such as payroll records and financial statements, to support your claim. They will likewise help compute the credit quantity based upon qualified salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize possible chances for retroactive credits. They can help you amend prior income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the essential types and documents on your behalf. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have developed in time. These business stay upgraded with the latest modifications and guarantee that your filings adhere to the most existing guidelines. They can also offer ongoing support if the IRS demands extra info or conducts an audit related to your ERC claim.
It is very important to research and veterinarian any business offering ERC filing assistance to guarantee their trustworthiness and expertise. Search for recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who provide ERC filing support.
Bear in mind that while these companies can provide valuable assistance, it’s always a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to encourage businesses to keep and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, employers must satisfy one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As mentioned earlier, for 2021, a significant decline is specified as a 20% decrease 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 invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of certified salaries paid to workers, consisting of particular health insurance costs. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. However, the exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, permitting eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for services to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Kind 941. If the credit surpasses the amount of employment taxes owed, the excess can be reimbursed to the company.
It is essential to keep in mind that the ERC provisions and eligibility requirements have actually developed with time. The best course of action is to speak with a tax professional or go to the main internal revenue service site for the most detailed and up-to-date details concerning the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company should satisfy among the following requirements:.
Business operations were fully or partially suspended due to a 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 considerable 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 instantly preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and services that got a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC includes completing the required forms and including the credit on your work income tax return (normally Type 941). The exact time it takes to process the credit can differ based upon numerous elements, consisting of the complexity of your service and the work of the internal revenue service. It’s advised to seek advice from a tax expert for assistance specific to your situation.
There are numerous business that can assist with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll company. Some popular business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these companies directly to inquire about their charges and services.
Please note that the information supplied here is based upon basic understanding and may not reflect the most recent updates or changes to the ERC. It is very important to speak with a tax professional or check out the official internal revenue service site for the most current and accurate details regarding eligibility, claiming procedures, and readily available assistance.
Less than 100. If the company had 100 or less employees on average in 2019, then the credit is based.
on salaries paid to all employees whether they really worked or not. Simply put, 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 employer had more than 100 staff members on average in 2019.
permitted only for wages paid to workers who did not work during the calendar quarter.
In both cases, “incomes” includes not just money payments however likewise a part of the cost of company.
provided healthcare. Employee Retention Credit Los Angeles
Payment.
Companies can be instantly reimbursed for the credit by reducing the quantity of payroll taxes they.