Lets talk first about Employee Retention Credit Revenue Decline :
Our group here what do these men doing everyone in this space is helping teach individuals about ERC and uh constantly provide a beautiful breakfast and have people truly learn more about the program we need to head to the room where we have the ability to display a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars literally 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 indicate you understand if you simply start to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I indicate think of how many real clients that went through the program yeah this is the very end this is the celebration 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 client so that’s how you have the ability to track it you understand when you
get this you know the check is gone for sure and that’s when they pay so they do not pay anything up until they really receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their checking account and they can truly trust Wonder trust that the procedure has actually been ended up and how many you believe you have actually processed since you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you need you require 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly important today the employee retention credit which most of you have never become aware of I certainly hadn’t heard of it till very just recently and discovered a lot about it because this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 contact your bank supervisor and say offer 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 enjoy this program it’s going away very soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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 money payroll tax refund all right go on sorry I just need to make certain we got that point I imply that’s a big distinction a loan versus cash money I like cash money that’s what we’re speaking 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 original cares Act is the ERC and yes Kevin it is a gorgeous difficult check in the mail where you get real money from the IRS all right so let’s talk about how it works due to the fact that it seems like to me if it’s a if it’s worker retention credit that individual needed to be a worker so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have owned a service however it’s based upon you having W-2 staff members 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 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 appropriate so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s wage 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 salary to a maximum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because the turmoil of the pandemic so they wished 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 up to 5 thousand Max and then what occurs 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 staff member that is because that’s a great deal of cash it is now there’s a caveat here the PPP cash would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge certainly now the huge question is why does no one learn about this since look when I initially became aware of this when I first fulfilled Josh you know I’ve got lots of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially heard about 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 really easy to do we had our CEOs call the banks they got their loans and that were well deserved and we used them sensibly to survive throughout the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even contacted us to my politician buddies Guv Senators they didn’t learn 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 individuals informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one learn about the worker retention credit you know what’s fascinating you’re talking about the banks Kevin since in the PPP loan procedure 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 procedure 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 turmoil since remember in the initial cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not actually he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never done this before unless you have an account that went into this service and bottom line my firm Kevin has actually stayed in business because 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge huge business customers have dealt 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 staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross receipts, company whose business is fully or partially suspended.
decrease by more than 50%.
1. The credit is offered to all employers no matter size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The meaning of certifying incomes varies by whether an employer had, on average, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing help normally provide proficiency and support to assist organizations navigate the intricate process of claiming the credit. They can provide various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Revenue Decline
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based upon elements such as your market, revenue, and operations. They can help determine if you meet the requirements for the credit and determine the maximum credit quantity you can claim.
Documentation and Calculation: ERC filing services will help in collecting the needed documentation, such as payroll records and monetary declarations, to support your claim. They will also help calculate the credit amount based on qualified earnings and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to identify potential chances for retroactive credits. They can help you change prior tax returns to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the needed forms and documentation in your place. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have progressed gradually. These companies remain upgraded with the current changes and ensure that your filings comply with the most current guidelines. If the IRS demands additional info or carries out an audit associated to your ERC claim, they can likewise offer ongoing support.
It’s important to research study and veterinarian any business providing ERC filing support to ensure their reliability and proficiency. Search for established firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax professionals who use ERC filing assistance.
Bear in mind that while these business can provide valuable assistance, it’s always a good concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to keep and pay their workers during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, companies need to satisfy one of two requirements:.
Business operations were totally or partially 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 substantial decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly 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 percentage (up to 70%) of certified wages paid to staff members, consisting of certain health plan expenditures. 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, companies that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. The very same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, allowing qualified employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision offers an opportunity for services to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, generally Form 941. If the credit goes beyond the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is necessary to note that the ERC arrangements and eligibility criteria have actually evolved in time. The best strategy is to speak with a tax professional or check out the official internal revenue service website for the most comprehensive and updated information concerning the ERC, consisting of any current legislative modifications or updates.
To receive the ERC, a service must fulfill among the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and services that received a PPP loan may have restrictions on declaring the credit.
The process for claiming the ERC includes finishing the needed kinds and including the credit on your work tax return (normally Type 941). The exact time it requires to process the credit can differ based upon several factors, including the complexity of your organization and the workload of the IRS. It’s recommended to talk to a tax expert for guidance specific to your circumstance.
There are numerous companies that can help with the procedure of claiming the ERC. Some popular companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based on general knowledge and might not reflect the most current updates or changes to the ERC. It is very important to seek advice from a tax expert or check out the official internal revenue service website for the most precise and updated information concerning eligibility, claiming treatments, and available help.
Less than 100. If the employer had 100 or less staff members on average in 2019, then the credit is based.
on earnings paid to all workers whether they actually worked or not. In other words, even if the.
staff members worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
allowed just for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply money payments however likewise a portion of the expense of employer.
supplied healthcare. Employee Retention Credit Revenue Decline
Employers can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.