Lets talk first about Employee Retention Credit Reinstatement Act Congress :
Our team here what do these guys doing everybody in this space is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have individuals actually discover the program we should head to the room where we have the ability to show a few of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I indicate you know if you just begin 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 suggest it’s just I suggest consider 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 confirmed 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
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 receive the money they do not pay bottom line Wonder trust anything till this letter is verified the check is on the method they transfer it into their bank account and they can genuinely trust Wonder trust that the process has been completed and how many you believe you have actually processed considering that you started 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 require specialists 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 Terrific here you’re at my YouTube channel we’re talking about something truly essential today the employee retention credit which the majority of you have actually never become aware of I definitely had not become aware of it until very just recently and learned a lot about it due to the fact that this is probably the most affordable expense of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve got the professional 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 hard this isn’t like PPP we simply phone your bank manager and say give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform 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 love this program it’s disappearing very soon you got to learn everything about it let’s talk worker 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 two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money cash payroll tax refund all right go on sorry I simply need to ensure we got that point I imply that’s a huge distinction a loan versus money money I like cash money that’s what we’re talking about 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 stunning difficult check in the mail where you get actual cash from the IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s worker retention credit that individual needed to be a staff member so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you needed to have actually owned an organization however it’s based upon you having W-2 employees in America not 10.99. so 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 need to be on payroll for the first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you return per employee that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s income to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus due to the fact that 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 as much as 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caution here the PPP cash would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the huge concern is why does no one know about this since appearance when I initially found out about this when I first fulfilled Josh you know I have actually got lots of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many many financial investments in entrepreneurs of which numerous suffered through the pandemic when I first found out about this I called BS I don’t believe it because I use 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 and that were well been worthy of and we used them sensibly to stay alive 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 politician pals Guv Senators they didn’t know about it I mean that’s how you know that’s how false information is that there’s no details out there then a bunch of people informed me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one know about the worker retention credit you know what’s fascinating you’re talking about 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 country and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure procedure that’s all um and here there was mayhem due to the fact that keep in mind in the original cares act you could not do 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 federal government never ever made it clear to any person about how to.
do this does your CFO understand 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 companies yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has actually stayed in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have actually dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose service is fully or partially suspended.
decrease by more than 50%.
1. The credit is offered to all companies despite size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of qualifying wages differs by whether a company had, typically, more or less than.
100 employees in 2019.
Business that concentrate on ERC filing help generally provide know-how and support to help services navigate the complicated procedure of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Reinstatement Act Congress
Eligibility Evaluation: These business will assess your organization’s eligibility for the ERC based on factors such as your industry, earnings, and operations. They can assist identify if you meet the requirements for the credit and determine the optimum credit amount you can declare.
Paperwork and Estimation: ERC filing services will assist in gathering the needed paperwork, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit quantity based upon qualified wages and other certifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to identify potential chances for retroactive credits. They can assist you amend prior income tax return to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and submit the essential types and documentation on your behalf. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved gradually. These companies stay updated with the latest modifications and guarantee that your filings comply with the most existing standards. If the IRS requests extra details or performs an audit associated to your ERC claim, they can likewise provide continuous assistance.
It is necessary to research and veterinarian any business using ERC filing support to guarantee their trustworthiness and proficiency. Look for recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who provide ERC submitting assistance.
Bear in mind that while these business can provide valuable support, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and ensure precise filings.
The Employee 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 encourage organizations to retain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit businesses, tax-exempt companies, and certain governmental entities. To qualify, companies need to meet one of two criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As pointed out earlier, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away 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 (as much as 70%) of qualified incomes paid to staff members, consisting of certain 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, businesses that received an Income Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got a PPP loan. The same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, permitting qualified companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, normally Form 941. The excess can be refunded to the company if the credit exceeds the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have actually developed gradually. The very best strategy is to speak with a tax professional or visit the official IRS website for the most current and comprehensive details relating to the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, a business must satisfy one of the following criteria:.
The 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 receipts. For 2021, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline 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 offered to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that got a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC involves completing the essential kinds and including the credit on your work income tax return (usually Type 941). The exact time it takes to process the credit can differ based on several aspects, including the complexity of your service and the workload of the internal revenue service. It’s suggested to consult with a tax professional for guidance particular to your situation.
There are a number of business that can aid with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some widely known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and call these business directly to inquire about their services and fees.
Please note that the information offered here is based upon basic understanding and might not show the most current updates or changes to the ERC. It is essential to consult with a tax professional or go to the official IRS website for the most precise and up-to-date info concerning eligibility, claiming procedures, and offered support.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on salaries paid to all staff members whether they actually worked or not. Simply put, even if the.
staff members worked full-time and earned money 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 just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not simply money payments however likewise a portion of the expense of employer.
supplied healthcare. Employee Retention Credit Reinstatement Act Congress
Companies can be instantly compensated for the credit by reducing the quantity of payroll taxes they.