Lets talk first about Employee Retention Credit Refund Check Status :
Our team here what do these people doing everybody in this room is assisting teach people about ERC and uh constantly offer a lovely breakfast and have people really discover the program we should head to the room where we are able to show some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the method I mean you understand if you just start 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 simply I imply think of the number of 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 validated and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you understand when you
receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything till they actually receive the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they transfer it into their checking account and they can truly trust Wonder trust that the procedure has been finished and how many you believe you’ve processed since you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you need you require 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 Fantastic here you’re at my YouTube channel we’re speaking about something actually crucial today the staff member retention credit which the majority of you have actually never heard of I definitely hadn’t heard of it up until really recently and learned a lot about it since this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call up your bank manager and state provide me a loan it does not 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’ve ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I simply have to ensure we got that point I indicate that’s a big difference a loan versus cash cash I like money cash that’s what we’re speaking 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 original cares Act is the ERC and yes Kevin it is a beautiful tough check in the mail where you get actual cash from the IRS 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 individual needed to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you had to have owned a company however it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the very 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 two 3 and 4 of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part money how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus because the chaos of the pandemic so they wanted to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a lot of cash it is now there’s a caution here the PPP money would have to be decreased 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 usually Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge certainly now the huge question is why does nobody learn about this due to the fact that look when I initially found out about this when I initially fulfilled Josh you know I’ve got lots of financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I do not think it since I utilize the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them wisely to survive during the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my politician buddies Guv Senators they didn’t understand about it I indicate that’s how you know that’s how misinformation is that there’s no info out there then a lot of people told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody learn about the staff member retention credit you understand what’s intriguing you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 process process that’s all um and here there was mayhem because keep in mind in the initial cares act you could not do both programs so if you had actually 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 due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this company and bottom line my company Kevin has actually stayed in business given that 2009 and we have actually been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have actually worked with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
employer whose business is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all companies no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. When the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of qualifying wages varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Business that focus on ERC filing assistance generally supply expertise and support to help organizations browse the complicated process of declaring the credit. They can provide different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Refund Check Status
Eligibility Assessment: These business will evaluate your organization’s eligibility for the ERC based upon aspects such as your industry, income, and operations. They can help figure out if you meet the requirements for the credit and recognize the optimum credit amount you can declare.
Documentation and Computation: ERC filing services will help in gathering the required documentation, such as payroll records and monetary statements, to support your claim. They will also help compute the credit amount based on eligible earnings and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these companies can examine your past payroll records and financials to identify potential opportunities for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and submit the necessary forms and documentation in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually progressed over time. These companies remain upgraded with the most recent changes and make sure that your filings adhere to the most present guidelines. They can also supply continuous support if the IRS demands additional information or conducts an audit related to your ERC claim.
It is essential to research study and veterinarian any business using ERC filing assistance to ensure their trustworthiness and know-how. Try to find established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who offer ERC filing assistance.
Remember that while these companies can offer valuable assistance, it’s constantly a great idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to maintain 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 readily available to qualified employers, including for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, companies need to fulfill one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As mentioned previously, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts compared to the 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 qualified earnings paid to workers, including specific health insurance expenditures. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. However, the exact same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting qualified employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to amend prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, typically Form 941. The excess can be refunded to the company if the credit exceeds the quantity of work taxes owed.
It is essential to note that the ERC arrangements and eligibility requirements have actually evolved in time. The very best strategy is to seek advice from a tax professional or go to the main IRS website for the most detailed and updated information relating to the ERC, including any current legislative modifications or updates.
To qualify for the ERC, a service 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 significant decline in gross invoices. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and companies that received a PPP loan may have constraints on declaring the credit.
The process for claiming the ERC involves finishing the required forms and including the credit on your work tax return (normally Kind 941). The exact time it takes to process the credit can differ based upon a number of aspects, consisting of the intricacy of your business and the workload of the IRS. It’s suggested to consult with a tax expert for assistance specific to your scenario.
There are numerous companies that can help with the procedure of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some popular companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and get in touch with these business straight to ask about their fees and services.
Please note that the info supplied here is based on general understanding and may not show the most recent updates or changes to the ERC. It’s important to seek advice from a tax professional or visit the main IRS site for the most up-to-date and accurate information regarding eligibility, claiming procedures, and offered help.
Less than 100. If the company had 100 or less staff members on average in 2019, then the credit is based.
on salaries paid to all staff members whether they really worked or not. Simply put, even if the.
employees worked full time and got paid for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
allowed just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just money payments but likewise a part of the expense of employer.
offered health care. Employee Retention Credit Refund Check Status
Companies can be right away repaid for the credit by lowering the amount of payroll taxes they.