Lets talk first about Employee Retention Credit. :

Our team here what do these men doing everybody in this space is helping teach individuals about ERC and uh constantly offer a lovely breakfast and have individuals actually learn about the program we ought to head to the space where we are able to show some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I imply you know if you just begin to take a look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I indicate think about how many real clients 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 consumer so that’s how you have the ability to track it you know when you

receive this you know the check is chosen sure and that’s when they pay so they don’t pay anything till they in fact receive the money they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they deposit it into their checking account and they can genuinely trust Wonder trust that the procedure has actually been completed and the number of you think you’ve processed since you started this we have to do with 35 000 of these for

 

about six billion dollars wow so plainly they understand what they’re doing which’s what you require you require professionals 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly important today the employee retention credit which the majority of you have never become aware of I definitely hadn’t heard of it until extremely recently and discovered a lot about it since this is probably the most affordable expense of capital for any small company anywhere

anytime if you have employees in between five 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 challenging this isn’t like PPP we just phone your bank manager and state give me a loan it does not 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 become yes the Ambassador and paid spokesperson for this I like this program it’s going away 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 developed 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 big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.

remedy the cash money payroll tax refund alright go on sorry I simply need to make sure we got that point I mean that’s a huge difference a loan versus money money I like cash cash that’s what we’re talking 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 initial cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real money from the IRS all right so let’s discuss how it works since 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 Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have actually owned a business however it’s based upon you having W-2 employees in America not 10.99. 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 first six months of 2021 on the W-2 appropriate so there were six 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 2 and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash just how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of seven thousand per quarter how did that take place um they simply altered the rules in.

2021 versus since 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 approximately five 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 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker 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 reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state 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 obviously now the huge question is why does no one learn about this because look when I initially found out about this when I first met Josh you understand I have actually got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous lots of investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I don’t think it because 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 which were well been worthy of and we used them sensibly to stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even contacted us to my politician buddies Guv Senators they didn’t learn about it I indicate that’s how you know that’s how false information is that there’s no details out there then a lot of individuals informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody know about the employee retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan process 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 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 procedure that’s all um and here there was mayhem because keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the initial 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 government never ever 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 don’t do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that entered into this business and bottom line my firm Kevin has been in business since 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big business customers have actually dealt with bottom line to recuperate other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.

The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
company whose business is completely or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Availability.
1. The credit is readily available to all companies no matter size including tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed 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 qualify.
after completion of that quarter.

Computation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of certifying earnings varies by whether a company had, on average, basically than.
100 employees in 2019.

Business that concentrate on ERC filing assistance generally provide know-how and support to help organizations browse the complicated procedure of declaring the credit. They can use different services, consisting of:.

 

How is the employee retention credit calculated? Employee Retention Credit.

Eligibility Evaluation: These companies will evaluate your service’s eligibility for the ERC based on elements such as your market, revenue, and operations. If you satisfy the requirements for the credit and recognize the maximum credit amount you can claim, they can help identify.
Documentation and Computation: ERC filing services will assist in gathering the required paperwork, such as payroll records and financial statements, to support your claim. They will also help calculate the credit amount based on qualified incomes and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can evaluate your past payroll records and financials to determine possible chances for retroactive credits. They can assist you change previous tax returns to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the required forms and documents in your place. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have developed gradually. These business remain upgraded with the most recent modifications and ensure that your filings adhere to the most present standards. If the IRS requests extra information or carries out an audit associated to your ERC claim, they can likewise offer ongoing assistance.
It is essential to research study and vet any company providing ERC filing assistance to guarantee their reliability and know-how. Search for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who provide ERC filing support.

Keep in mind that while these companies can offer valuable help, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and guarantee precise filings.

The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate organizations to keep and pay their staff members throughout the pandemic, even if their operations have been impacted.

Here are some key points about the ERC:.

Eligibility: The ERC is offered to qualified employers, including for-profit businesses, tax-exempt companies, and particular governmental entities. To certify, employers should fulfill one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As pointed out earlier, for 2021, a significant decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline 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 amount is equal to a percentage (approximately 70%) of certified incomes paid to staff members, including particular health plan expenses. The maximum 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 a Paycheck Defense 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 received 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 expanded and enhanced, permitting eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to change prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment tax returns, usually Type 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the employer.
It’s important to note that the ERC provisions and eligibility criteria have actually evolved with time. The very best course of action is to talk to a tax expert or visit the official IRS site for the most up-to-date and detailed info concerning the ERC, consisting of any current legislative modifications or updates.

To get approved for the ERC, an organization needs to satisfy one of the following requirements:.

The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, however there are some exceptions. For instance, federal government entities and companies that received a PPP loan might have limitations on declaring the credit.

The procedure for declaring the ERC involves finishing the essential kinds and consisting of the credit on your employment tax return (generally Type 941). The exact time it takes to process the credit can vary based on several elements, including the complexity of your company and the work of the IRS. It’s recommended to talk to a tax expert for assistance specific to your scenario.

There are several business that can assist with the procedure of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some popular business that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these companies straight to ask about their fees and services.

Please keep in mind that the information offered here is based on basic understanding and might not show the most current updates or modifications to the ERC. It is very important to consult with a tax expert or go to the official internal revenue service site for the most updated and precise information relating to eligibility, declaring treatments, and readily available assistance.

Less than 100. If the company had 100 or less employees on average in 2019, then the credit is based.
on earnings paid to all employees whether they in fact worked or not. Simply put, even if the.
workers worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled just for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not just money payments but likewise a portion of the cost of company.
provided healthcare. Employee Retention Credit.
Payment.

Companies can be instantly repaid for the credit by reducing the amount of payroll taxes they.

Lets talk first about Employee Retention Credit: :

Our group here what do these guys doing everyone in this space is helping teach people about ERC and uh constantly provide a beautiful breakfast and have people truly learn about the program we should head to the room where we are able 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 millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I imply you understand if you simply start to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I suggest think of 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’re able to track it you understand when you

get this you understand the check is chosen sure which’s when they pay so they don’t pay anything until they in fact get the cash they do not pay bottom line Wonder trust anything until this letter is verified the check is on the way they transfer it into their bank account and they can really rely on Wonder trust that the process has been completed and the number of you believe you’ve processed since you started this we’re about 35 000 of these for

 

about six billion dollars wow so clearly they know what they’re doing which’s what you need you need professionals 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly important today the staff member retention credit which the majority of you have never heard of I definitely hadn’t heard of it up until really recently and found out a lot about it because this is probably the most affordable expense of capital for any small company anywhere

anytime if you have staff members in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 just contact your bank manager and state give 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 have actually ended up being yes the Ambassador and paid representative for this I love this program it’s going away soon you got to discover everything 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 used organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody 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.

remedy the money money payroll tax refund all right go on sorry I just have to make sure we got that point I suggest that’s a huge difference a loan versus money cash 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 initial cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual money 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 staff member retention credit that individual needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for staff members right you needed to have actually owned a company however it’s based upon 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 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 appropriate so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s salary to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that happen um they just altered the rules in.

2021 versus because the mayhem of the pandemic so they wished 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 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a lot of cash it is now there’s a caution here the PPP cash would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten 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 cash you would still get a million dollar in the mail from the IRS so it’s big undoubtedly now the big question is why does no one know about this since look when I initially heard about this when I initially fulfilled Josh you know I’ve got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make lots of many investments in business owners of which lots of suffered through the pandemic when I first found out about this I called BS I don’t think it due to the fact that 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 deserved and we used them carefully to survive throughout the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even contacted us to my political leader buddies Guv Senators they didn’t know about it I suggest that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one know about the worker retention credit you understand what’s interesting you’re speaking 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 procedure that’s all um and here there was chaos because keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anybody about how to.

do this does your CFO understand how to do this not truly she or he’s never ever 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 company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this company and bottom line my firm Kevin has stayed in business since 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 big huge business clients have dealt with bottom line to recuperate other government programs we’ve 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 government programs.

The employee 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 wages paid by an.
employer whose company is totally or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Accessibility.
1. The credit is offered to all companies despite size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is totally 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 an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.

Estimation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of certifying incomes varies by whether a company had, typically, basically than.
100 workers in 2019.

Business that concentrate on ERC filing help usually provide knowledge and assistance to assist companies navigate the complex procedure of claiming the credit. They can provide various services, consisting of:.

 

How is the employee retention credit calculated? Employee Retention Credit:

Eligibility Evaluation: These business will evaluate your service’s eligibility for the ERC based upon aspects such as your market, profits, and operations. They can assist determine if you fulfill the requirements for the credit and identify the maximum credit amount you can declare.
Documents and Calculation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit quantity based on eligible wages and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these companies can evaluate your past payroll records and financials to recognize possible chances for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the needed forms and documentation on your behalf. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have developed over time. These business stay updated with the latest changes and guarantee that your filings adhere to the most current standards. They can also supply continuous assistance if the IRS requests extra information or conducts an audit related to your ERC claim.
It is necessary to research and vet any business using ERC filing support to ensure their trustworthiness and competence. Try to find established firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax experts who offer ERC submitting assistance.

Keep in mind that while these business can provide important assistance, it’s always a great idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and make sure precise filings.

The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage companies to keep and pay their employees throughout the pandemic, even if their operations have actually been affected.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is readily available to eligible companies, consisting of for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, employers need to meet one of two 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 invoices. As mentioned earlier, 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 substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of certified salaries paid to staff members, including specific health plan 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, companies that received an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. The very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, enabling eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for organizations to change prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Form 941. If the credit exceeds the amount of work taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC arrangements and eligibility criteria have actually progressed with time. The best course of action is to talk to a tax professional or visit the main internal revenue service website for the most current and detailed information relating to the ERC, consisting of any current legal modifications or updates.

To qualify for the ERC, a business must meet one of the following requirements:.

The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a considerable decline is defined 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 receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, federal government entities and organizations that received a PPP loan might have limitations on declaring the credit.

The process for claiming the ERC involves finishing the required types and consisting of the credit on your work tax return (normally Type 941). The exact time it takes to process the credit can vary based upon numerous elements, consisting of the intricacy of your business and the work of the internal revenue service. It’s advised to seek advice from a tax expert for assistance specific to your situation.

There are a number of companies that can assist with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some well-known companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these companies straight to inquire about their fees and services.

Please note that the details offered here is based upon basic understanding and may not show the most current updates or changes to the ERC. It is essential to seek advice from a tax expert or check out the main internal revenue service site for the most accurate and up-to-date information concerning eligibility, declaring treatments, and available support.

Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on salaries paid to all staff members whether they in fact worked or not. In other words, even if the.
employees worked full-time and earned money 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 staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply cash payments but also a portion of the cost of employer.
offered healthcare. Employee Retention Credit:
Payment.

Companies can be immediately repaid for the credit by decreasing the amount of payroll taxes they.

Lets talk first about Employee Retention Credit :

Our team here what do these men doing everyone in this space is helping teach individuals about ERC and uh always provide a stunning breakfast and have people really find out about the program we must head to the room where we have the ability to show some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I mean you understand if you just begin to take a 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 simply I mean think about 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 verified the numbers are confirmed 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 understand the check is opted for sure which’s when they pay so they do not pay anything up until they in fact receive the money they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their bank account and they can truly rely on Wonder trust that the process has been completed and the number of you believe you have actually processed because you started 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 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 Terrific here you’re at my YouTube channel we’re speaking about something actually crucial today the worker retention credit which most of you have actually never heard of I certainly hadn’t become aware of it till really just recently and found out a lot about it since this is probably the lowest cost of capital for any small company anywhere

anytime if you have workers 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 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 just call up your bank supervisor and state provide me a loan it does not 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 spokesperson for this I love this program it’s disappearing very soon you got to discover 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 used services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge difference right there two 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 fine go on sorry I just need to make certain we got that point I suggest that’s a huge difference a loan versus money money I like money 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 stunning hard check in the mail where you get actual money from the internal revenue service all right so let’s talk about how it works because it sounds like to me if it’s a if it’s staff member retention credit that person had to be a worker so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have owned a company however it’s based upon you having W-2 workers 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 need to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to a maximum of 7 thousand per quarter how did that occur um they simply changed the rules in.

2021 versus due to the fact that the chaos of the pandemic so they wished 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 five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with 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 since that’s a lot of money it is now there’s a caveat here the PPP cash would need 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 usually Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New York 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 big undoubtedly now the big question is why does nobody understand about this due to the fact that appearance when I initially found out about this when I first satisfied Josh you understand I have actually got great deals of financial investments in great deals of business I’m a major advocate for entrepreneurship in America and make numerous numerous investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I do not think it because I use the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them carefully to stay alive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even called to my political leader good friends Guv Senators they didn’t understand about it I suggest that’s how you know that’s how false information is that there’s no information out there then a bunch of people told me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does no one know about the worker retention credit you know what’s interesting you’re speaking about the banks Kevin since 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 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 procedure process that’s all um and here there was turmoil because remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing 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 government never ever made it clear to any person about how to.

do this does your CFO understand how to do this not actually she or he’s never ever 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 accountant’s never ever done this before unless you have an account that entered into this business and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge corporate clients have actually worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.

The worker retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Because of COVID-19 or whose gross receipts, employer whose service is totally or partly suspended.
decline by more than 50%.
Availability.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.

Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying wages differs by whether an employer had, on average, basically than.
100 staff members in 2019.

Companies that specialize in ERC filing help generally provide knowledge and assistance to assist businesses navigate the complex procedure of declaring the credit. They can use different services, including:.

 

How is the employee retention credit calculated? Employee Retention Credit

Eligibility Assessment: These companies will examine your service’s eligibility for the ERC based upon aspects such as your market, revenue, and operations. If you fulfill the requirements for the credit and recognize the maximum credit quantity you can declare, they can help figure out.
Paperwork and Calculation: ERC filing services will help in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will likewise assist determine the credit quantity based on eligible salaries and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to determine possible chances for retroactive credits. They can assist you amend previous tax returns to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the necessary kinds and paperwork in your place. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have progressed with time. These companies remain updated with the current changes and guarantee that your filings adhere to the most present standards. If the IRS requests additional info or conducts an audit associated to your ERC claim, they can also provide continuous support.
It is necessary to research and veterinarian any company offering ERC filing help to ensure their reliability and know-how. Look for established companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who offer ERC filing assistance.

Keep in mind that while these business can provide valuable help, it’s constantly a great idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified choices and make sure precise filings.

The Employee 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 maintain and pay their employees during the pandemic, even if their operations have been affected.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is offered to qualified employers, including for-profit services, tax-exempt companies, and particular governmental entities. To certify, employers must satisfy one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. As pointed out earlier, for 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts 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 amount amounts to a percentage (as much as 70%) of qualified wages paid to staff members, consisting of particular health plan expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they received a PPP loan. However, the exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, enabling qualified companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Type 941. If the credit surpasses the amount of work taxes owed, the excess can be refunded to the company.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually developed over time. The best course of action is to talk to a tax expert or check out the official internal revenue service site for the most in-depth and updated details concerning the ERC, including any recent legal modifications or updates.

To receive the ERC, a company should meet one of the following requirements:.

Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a significant decline is specified 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% decline in gross receipts compared to the instantly preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and companies that got a PPP loan might have restrictions on declaring the credit.

The procedure for declaring the ERC involves completing the essential types and consisting of the credit on your work income tax return (generally Form 941). The exact time it takes to process the credit can differ based upon a number of elements, consisting of the complexity of your organization and the work of the internal revenue service. It’s suggested to speak with a tax professional for assistance particular to your scenario.

There are numerous companies that can assist with the procedure of declaring the ERC. Some well-known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.

Please keep in mind that the info supplied here is based upon basic knowledge and may not reflect the most recent updates or changes to the ERC. It is essential to consult with a tax professional or go to the main IRS site for the most up-to-date and precise information concerning eligibility, declaring treatments, and offered help.

Less than 100. If the employer had 100 or less employees usually in 2019, then the credit is based.
on earnings paid to all workers whether they actually worked or not. Simply put, even if the.
employees worked full time and earned money 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.
enabled just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply money payments however also a portion of the cost of employer.
offered health care. Employee Retention Credit
Payment.

Companies can be immediately repaid for the credit by decreasing the quantity of payroll taxes they.