Lets talk first about Employee Retention Credit Update :
Our group here what do these men doing everyone in this space is helping teach individuals about ERC and uh constantly supply a stunning breakfast and have individuals really learn about the program we must head to the room where we are able to display some of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I indicate you know if you just 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 indicate it’s just I suggest consider how many actual clients 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 client so that’s how you have the ability to track it you know when you
receive this you understand the check is chosen sure which’s when they pay so they do not pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their checking account and they can truly trust Wonder trust that the process has been ended up and how many you think you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly 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 speaking about something truly essential today the employee retention credit which the majority of you have actually never become aware of I certainly had not heard of it up until really just recently and found out a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just call up your bank supervisor and state give me a loan it doesn’t 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 ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund alright go on sorry I simply need to make certain we got that point I imply that’s a big difference a loan versus cash money I like cash money 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 original cares Act is the ERC and yes Kevin it is a beautiful tough check in the mail where you get actual money from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker retention credit that individual had to be an employee 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 employees right you needed to have actually owned an organization however it’s based on 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part cash just 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 specific Kevin is 50 of the employee’s income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s salary 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 chaos 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 approximately five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of money it is now there’s a caution here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere 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 IRS so it’s huge undoubtedly now the big concern is why does no one learn 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 lots of companies I’m a major advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not think it because I use 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 which were well been worthy of and we utilized them sensibly to stay alive during the pandemic so when I heard about this I stated nah it can’t be true however when I dug around I even called to my politician good friends Guv Senators they didn’t understand about it I mean that’s how you know that’s how false information is that there’s no info out there then a lot of individuals 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 talking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process 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 not do ERC in the original program and when they changed the law in 2021 the banks were not doing ERC due to the fact that 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 truly she or he’s never done it previously 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 done this before unless you have an account that entered into this service and bottom line my firm Kevin has been in business given that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big business customers have worked with bottom line to recover other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
employer whose company is fully or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is readily available to all companies regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages differs by whether a company had, typically, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing help usually provide proficiency and assistance to help businesses browse the intricate procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Update
Eligibility Evaluation: These companies will assess your service’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. If you satisfy the requirements for the credit and recognize the maximum credit quantity you can declare, they can assist identify.
Paperwork and Calculation: ERC filing services will assist in gathering the needed documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist determine the credit quantity based on eligible wages and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these business can review your past payroll records and financials to determine prospective opportunities for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and submit the necessary kinds and paperwork in your place. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have progressed in time. These companies stay updated with the current modifications and ensure that your filings comply with the most existing standards. They can also offer ongoing support if the IRS requests additional info or conducts an audit related to your ERC claim.
It is essential to research and vet any business offering ERC filing support to guarantee their trustworthiness and knowledge. Look for established companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax professionals who use ERC submitting support.
Keep in mind that while these business can provide important assistance, it’s always an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage companies to retain 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 offered to eligible employers, consisting of for-profit companies, tax-exempt companies, and specific governmental entities. To certify, companies should meet one of two requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts 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 (approximately 70%) of qualified incomes 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: At first, companies that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. The same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, enabling 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 receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Form 941. If the credit surpasses the quantity of work taxes owed, the excess can be refunded to the company.
It is very important to note that the ERC provisions and eligibility criteria have actually progressed with time. The best strategy is to seek advice from a tax expert or check out the main internal revenue service site for the most updated and detailed information relating to the ERC, including any current legislative changes or updates.
To receive the ERC, a company must satisfy one of the following criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a significant decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts 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 instance, government entities and companies that got a PPP loan might have constraints on claiming the credit.
The procedure for declaring the ERC involves finishing the required kinds and consisting of the credit on your employment tax return (typically Form 941). The exact time it takes to process the credit can vary based on a number of elements, consisting of the intricacy of your organization and the workload of the IRS. It’s suggested to speak with a tax expert for guidance particular to your scenario.
There are several business that can aid with the procedure of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some well-known companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these business directly to inquire about their costs and services.
Please note that the information supplied here is based on basic knowledge and may not reflect the most current updates or modifications to the ERC. It is essential to talk to a tax professional or visit the official IRS site for the most precise and up-to-date information concerning eligibility, declaring procedures, and available assistance.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on salaries paid to all staff members whether they really worked or not. Simply put, 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 company had more than 100 employees on average in 2019.
allowed just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just cash payments but also a part of the cost of employer.
provided health care. Employee Retention Credit Update
Employers can be immediately compensated for the credit by decreasing the amount of payroll taxes they.