Lets talk first about Employee Retention Credit Phone Call Scam :
Our team here what do these men doing everyone in this room is helping teach individuals about ERC and uh always provide a stunning breakfast and have people really learn more about the program we need to head to the room where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I mean you understand if you simply start to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I mean consider how many actual customers 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 consumer so that’s how you’re able to track it you understand when you
receive this you understand the check is gone for sure and that’s when they pay so they don’t pay anything till they in fact get the cash they do not pay bottom line Wonder trust anything till this letter is validated the check is on the method they deposit it into their savings account and they can really rely on Wonder trust that the procedure has been finished and the number of you believe you have actually processed since you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need 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 Wonderful here you’re at my YouTube channel we’re discussing something actually crucial today the staff member retention credit which most of you have never heard of I certainly hadn’t become aware of it till very just recently and found out a lot about it due to the fact that this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have workers between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply call your bank manager and say provide me a loan it does not 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’ve become yes the Ambassador and paid representative for this I love this program it’s going away soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund fine go on sorry I simply need to ensure we got that point I imply that’s a big difference a loan versus money cash I like cash cash 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 gorgeous tough 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 needed to be a worker 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 staff members right you needed to have owned an organization but it’s based upon you having W-2 workers 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 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 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 during 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 six quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that take place um they just altered the rules in.
2021 versus due to the fact that the mayhem 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 then what occurs 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 since that’s a great deal of cash it is now there’s a caution here the PPP cash would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment 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 certainly now the huge concern is why does nobody understand about this because appearance when I first became aware of this when I initially fulfilled Josh you understand I’ve got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous many investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not believe it since I utilize the PPP we went through the cash center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them sensibly to survive during the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even contacted us to my political leader friends Governor Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no details out there then a bunch of people told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody understand about the staff member retention credit you understand what’s interesting 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 big 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 simply procedure process that’s all um and here there was mayhem due to the fact that remember in the original cares act you might not do both programs so if you had done PPP you could not do ERC in the original 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 federal 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 done it in the past do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this service and bottom line my company Kevin has actually been in business because 2009 and we’ve been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge huge business customers have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax joblessness tax work opportunity 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 designed to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Since of COVID-19 or whose gross invoices, employer whose business is fully or partially suspended.
decrease by more than 50%.
Availability.
1. The credit is offered to all companies 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 certify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings differs by whether an employer had, usually, basically than.
100 staff members in 2019.
Business that focus on ERC filing assistance usually supply know-how and assistance to assist services browse the intricate procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Phone Call Scam
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based on elements such as your industry, earnings, and operations. They can assist identify if you satisfy the requirements for the credit and identify the optimum credit amount you can claim.
Paperwork and Computation: ERC filing services will assist in gathering the required paperwork, such as payroll records and financial statements, to support your claim. They will also help compute the credit amount based on eligible wages and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you amend prior tax returns to claim these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the necessary forms and paperwork on your behalf. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have developed with time. These business stay updated with the most recent changes and guarantee that your filings comply with the most current standards. If the Internal revenue service demands extra details or conducts an audit associated to your ERC claim, they can likewise supply ongoing assistance.
It is essential to research study and veterinarian any company providing ERC filing support to guarantee their credibility and expertise. Look for recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who offer ERC filing support.
Bear in mind that while these business can supply important assistance, it’s always a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and guarantee 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 businesses to retain and pay their workers during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To qualify, employers must satisfy one of two requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As mentioned earlier, for 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross receipts compared to the exact 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 qualified salaries paid to workers, consisting of particular health insurance 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: At first, companies that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they got a PPP loan. The very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, permitting eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Type 941. The excess can be refunded to the company if the credit surpasses the amount of employment taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have actually developed in time. The best course of action is to talk to a tax professional or visit the main internal revenue service website for the most detailed and updated info regarding the ERC, consisting of any current legal modifications or updates.
To qualify for the ERC, an organization needs to fulfill one of the following 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. For 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, however there are some exceptions. For instance, federal government entities and services that received a PPP loan may have constraints on claiming the credit.
The procedure for claiming the ERC includes completing the needed types and including the credit on your employment tax return (usually Kind 941). The exact time it requires to process the credit can vary based upon several aspects, including the intricacy of your business and the work of the internal revenue service. It’s advised to seek advice from a tax professional for assistance specific to your circumstance.
There are several companies that can assist with the process of claiming the ERC. Some well-known business that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details supplied here is based upon basic knowledge and might not show the most current updates or changes to the ERC. It is essential to seek advice from a tax professional or check out the main IRS website for the most up-to-date and accurate details regarding eligibility, declaring procedures, and readily available help.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on wages paid to all employees whether they really worked or not. To put it simply, 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 company had more than 100 employees typically in 2019, then the credit is.
permitted just for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not simply cash payments however also a portion of the cost of company.
offered health care. Employee Retention Credit Phone Call Scam
Payment.
Employers can be immediately compensated for the credit by minimizing the amount of payroll taxes they.