Lets talk first about Filing Deadline For Employee Retention Credit :
Our group here what do these men doing everyone in this space is assisting teach individuals about ERC and uh constantly supply a gorgeous breakfast and have people really learn about the program we must head to the space where we are able to display some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I indicate you know if you simply begin to 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 suggest it’s just I indicate consider the number of real 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 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’re able to track it you understand when you
get this you know the check is gone for sure which’s when they pay so they don’t pay anything up until they actually receive the money they do not pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their bank account and they can truly trust Wonder trust that the procedure has been finished and how many you believe you have actually processed given that you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’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 Fantastic 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 become aware of I certainly had not heard of it up until really recently and learned a lot about it since this is probably the lowest cost of capital for any small business anywhere
anytime if you have staff members 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 Principles 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 call up your bank supervisor and say provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell us all about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund all right go on sorry I simply need to ensure we got that point I mean that’s a huge distinction a loan versus cash cash I like money money 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 lovely tough check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works because 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 Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for workers right you had to have owned a company but it’s based on you having W-2 staff members 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 very first six months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my preferred part money just how much can you return 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 staff member’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that 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 as much as 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of money it is now there’s a caution here the PPP cash would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment 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 IRS so it’s substantial clearly now the huge question is why does no one learn about this due to the fact that appearance when I first found out about this when I first fulfilled Josh you know I’ve got lots of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make numerous lots of investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not believe 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 should have and we utilized them carefully to survive during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even called to my political leader pals Guv Senators they didn’t understand about it I indicate that’s how you know that’s how misinformation is that there’s no details out there then a bunch of individuals told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s intriguing you’re discussing the banks Kevin because in the PPP loan process the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 simply procedure process that’s all um and here there was chaos since keep in mind in the original cares act you might not do both programs so if you had actually 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 government never made it clear to anyone about how to.
do this does your CFO understand how to do this not actually she or he’s never 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 accountant no your accounting professional’s never ever done this before unless you have an account that went 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 recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge big business customers have actually dealt with bottom line to recover other government programs we’ve done sales tax and use tax joblessness 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 motivate.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
company whose organization is fully or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all employers regardless of size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent 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 earnings paid up to $10,000 in total.
It works for incomes 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 staff members in 2019.
Business that concentrate on ERC filing assistance generally supply expertise and support to assist businesses browse the complex procedure of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Filing Deadline For Employee Retention Credit
Eligibility Evaluation: These business will evaluate your service’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. They can help figure out if you fulfill the requirements for the credit and identify the maximum credit amount you can declare.
Documents and Computation: ERC filing services will help in gathering the required documents, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit quantity based on qualified salaries and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can review your previous payroll records and financials to recognize potential chances for retroactive credits. They can help you change previous income tax return to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the necessary forms and documentation on your behalf. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually progressed with time. These business stay upgraded with the latest changes and guarantee that your filings abide by the most current guidelines. If the IRS demands additional details or carries out an audit associated to your ERC claim, they can likewise offer ongoing assistance.
It’s important to research study and veterinarian any company using ERC filing support to ensure their credibility and know-how. Try to find established firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who provide ERC submitting support.
Keep in mind that while these business can provide valuable support, it’s always a great concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to encourage organizations to maintain and pay their workers during 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 companies, including for-profit companies, tax-exempt companies, and particular governmental entities. To certify, companies should fulfill one of two requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As discussed previously, for 2021, a substantial decrease is defined as a 20% decrease 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 very 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 quantity amounts to a portion (as much as 70%) of certified incomes paid to employees, including 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, companies that got an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they got a PPP loan. The very same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, permitting eligible employers to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision provides an opportunity for businesses to change prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, usually Form 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the company.
It is essential to keep in mind that the ERC provisions and eligibility requirements have evolved with time. The very best course of action is to seek advice from a tax expert or visit the official IRS website for the most current and comprehensive info relating to the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, a business needs to fulfill among the following criteria:.
Business operations were completely 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 substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and businesses that received a PPP loan may have limitations on claiming the credit.
The process for claiming the ERC involves completing the required forms and including the credit on your employment tax return (usually Type 941). The exact time it requires to process the credit can differ based on numerous elements, including the complexity of your service and the workload of the internal revenue service. It’s suggested to speak with a tax expert for guidance specific to your situation.
There are numerous business that can help with the procedure of declaring the ERC. Some well-known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based upon general understanding and might not show the most current updates or modifications to the ERC. It is necessary to speak with a tax professional or visit the main IRS website for the most updated and precise info concerning eligibility, declaring procedures, and available support.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on incomes paid to all staff members whether they actually worked or not. In other words, even if the.
workers worked full-time and made money for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 workers on average in 2019, then the credit is.
allowed just for salaries paid to workers who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but likewise a portion of the expense of company.
offered healthcare. Filing Deadline For Employee Retention Credit
Companies can be instantly compensated for the credit by decreasing the amount of payroll taxes they.