Lets talk first about Employee Retention Credit Refund Timeline :
Our group here what do these guys doing everybody in this space is helping teach people about ERC and uh constantly supply a lovely breakfast and have people really find out about the program we must head to the space where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I imply you know if you simply start to take a look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I imply think about the number of real 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 IRS heading to the consumer so that’s how you have the ability to track it you understand when you
receive this you know the check is gone for sure and that’s when they pay so they do not pay anything till they really get the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their checking account and they can really trust Wonder trust that the procedure has actually been finished and the number of you think you’ve processed considering that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand 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 among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re discussing something actually essential today the employee retention credit which most of you have never ever become aware of I certainly had not become aware of it up until very recently and discovered a lot about it because this is probably the most affordable cost of capital for any small business anywhere
anytime if you have employees between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder 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 simply phone your bank manager and state offer 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 representative for this I like this program it’s going away very soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund okay go on sorry I just need to make certain we got that point I imply that’s a huge difference a loan versus money money I like cash cash that’s what we’re speaking about alright 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 lovely hard check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works because it seems like to me if it’s a if it’s employee 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 a service but it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 workers 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 appropriate so there were six 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. fine so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my favorite part money how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the turmoil of the pandemic so they wanted 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 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 six thousand dollars per staff member that is because that’s a great deal of money it is now there’s a caution here the PPP cash would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease 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 state hypothetically you owned a restaurant in New york city 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 big obviously now the huge concern is why does nobody learn about this because appearance when I first found out about this when I initially met Josh you understand I’ve got lots of financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I do not believe 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 and that were well deserved and we utilized them sensibly to stay alive 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 political leader buddies Governor Senators they didn’t know 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 informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody know about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin due to the fact that 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 procedure that’s all um and here there was chaos because keep in mind in the original cares act you might not do both programs so if you had actually done PPP you could refrain from doing ERC in the initial 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 federal government never made it clear to anyone about how to.
do this does your CFO know how to do this not truly she or he’s never done it before do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this organization 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 cash for Fortune 500 Fortune 1000 companies so a lot of our huge big corporate customers have actually dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment 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 earnings paid by an.
employer whose business is completely or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all employers despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. When the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, on average, basically than.
100 workers in 2019.
Companies that focus on ERC filing support normally offer competence and support to assist companies browse the intricate process of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Refund Timeline
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can claim, they can assist determine.
Paperwork and Estimation: ERC filing services will help in collecting the necessary documentation, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based upon qualified incomes and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to identify possible opportunities for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the necessary forms and documentation in your place. This includes finishing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have actually developed gradually. These business remain upgraded with the latest changes and ensure that your filings adhere to the most present standards. They can also provide ongoing support if the IRS demands additional info or performs an audit related to your ERC claim.
It is essential to research and veterinarian any company providing ERC filing support to ensure their trustworthiness and expertise. Search for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who provide ERC filing support.
Bear in mind that while these companies can provide valuable assistance, it’s constantly a good concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage companies to retain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit companies, tax-exempt companies, and specific governmental entities. To qualify, companies must meet one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As discussed earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
Credit Amount: 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 certified incomes paid to employees, consisting of specific 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: Initially, organizations that received an Income Security 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 got a PPP loan. The exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, allowing eligible companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to modify prior-year tax returns and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work tax returns, generally Type 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the company.
It’s important to note that the ERC arrangements and eligibility criteria have progressed gradually. The best course of action is to seek advice from a tax professional or go to the official IRS website for the most detailed and up-to-date details relating to the ERC, including any current legislative modifications or updates.
To get approved for the ERC, a service should fulfill among the following criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and businesses that received a PPP loan might have restrictions on claiming the credit.
The procedure for claiming the ERC involves completing the required types and consisting of the credit on your work tax return (normally Form 941). The exact time it takes to process the credit can differ based upon a number of elements, consisting of the intricacy of your organization and the workload of the internal revenue service. It’s suggested to talk to a tax professional for guidance specific to your situation.
There are several business 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 provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these companies directly to ask about their services and fees.
Please note that the information supplied here is based upon basic understanding and may not show the most recent updates or modifications to the ERC. It’s important to seek advice from a tax expert or check out the main IRS website for the most updated and accurate info regarding eligibility, claiming procedures, and readily available help.
Less than 100. If the company had 100 or less staff members typically in 2019, then the credit is based.
on salaries paid to all workers whether they actually worked or not. In other words, even if the.
workers 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.
permitted just for earnings paid to workers who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but also a part of the expense of company.
provided healthcare. Employee Retention Credit Refund Timeline
Employers can be instantly repaid for the credit by reducing the quantity of payroll taxes they.