Lets talk first about Georgia Employee Retention Credit :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh always offer a gorgeous breakfast and have individuals truly find out about the program we should head to the space where we have the ability to display some of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars literally 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 suggest you understand if you just begin 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 indicate it’s simply I mean consider how many real customers 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 validated 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 and that’s when they pay so they don’t pay anything till they really get the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their bank account and they can really rely on Wonder trust that the procedure has actually been finished and how many you think you have actually processed given that you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing which’s what you require 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 Terrific here you’re at my YouTube channel we’re discussing something really important today the staff member retention credit which the majority of you have never ever heard of I definitely hadn’t heard of it till really just recently and found out a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have employees between five and five hundred so I have actually 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 your bank manager and state give me a loan it doesn’t 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 become yes the Ambassador and paid spokesperson for this I like this program it’s going away very 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 developed the cares Act and the cares act provided organizations 3 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund okay go on sorry I just need to make sure we got that point I indicate that’s a big difference a loan versus cash cash I like cash cash 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 difficult check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member retention credit that person needed to be an employee so I’m going to make the Assumption this cash 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 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 workers 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 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 throughout 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 estimation in 2020 to be specific Kevin is 50 of the employee’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus since 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 as much as 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caution here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars a person 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 cash you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the huge concern is why does nobody understand about this because appearance when I first heard about this when I initially met Josh you know I have actually got great deals of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous many investments in business owners of which numerous suffered through the pandemic when I initially became aware of this I called BS I do not think 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 should have and we utilized them carefully to stay alive throughout the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even contacted us to my politician friends Governor Senators they didn’t know about it I imply that’s how you know that’s how false information is that there’s no info out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one know about the staff member retention credit you know what’s fascinating you’re talking about the banks Kevin since in the PPP loan process the federal government made it very 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 simply procedure process that’s all um and here there was mayhem since remember in the original cares act you could refrain from doing 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 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 he or she’s never done it before do the banks do it nope the banks do not do it the payroll business yeah some 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 company and bottom line my company Kevin has actually been in business because 2009 and we have actually been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big 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 property real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose company is fully or partially suspended.
decrease by more than 50%.
Availability.
1. The credit is readily available to all employers regardless of size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is fully or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. When the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of certifying salaries varies by whether a company had, usually, more or less than.
100 staff members in 2019.
Companies that concentrate on ERC filing support generally provide proficiency and support to assist services navigate the complicated process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Georgia Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based on aspects such as your market, revenue, and operations. If you satisfy the requirements for the credit and determine the maximum credit quantity you can declare, they can assist identify.
Documents and Computation: ERC filing services will help in collecting the required documentation, such as payroll records and monetary statements, to support your claim. They will also assist calculate the credit quantity based on qualified incomes and other certifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can examine your past payroll records and financials to identify possible chances for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and submit the needed kinds and documentation on your behalf. This consists of finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have actually evolved in time. These business remain upgraded with the current modifications and make sure that your filings adhere to the most present standards. If the Internal revenue service demands additional info or performs an audit associated to your ERC claim, they can likewise offer ongoing assistance.
It is necessary to research and vet any business providing ERC filing help to ensure their credibility and knowledge. Search for established firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who use ERC filing assistance.
Bear in mind that while these business can provide valuable help, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure accurate 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 services to keep and pay their employees 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 qualified companies, including for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, companies need to satisfy one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As mentioned previously, for 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (approximately 70%) of certified wages paid to staff members, consisting of specific health insurance expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they got a PPP loan. However, the very same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, enabling eligible companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, usually Type 941. The excess can be refunded to the company if the credit goes beyond the amount of employment taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have progressed with time. The best strategy is to consult with a tax professional or visit the official internal revenue service site for the most detailed and updated information regarding the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a business must fulfill one of the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease 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 instantly preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For example, federal government entities and organizations that received a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes completing the required forms and including the credit on your employment tax return (typically Type 941). The exact time it requires to process the credit can vary based upon numerous elements, including the complexity of your company and the work of the internal revenue service. It’s advised to speak with a tax expert for assistance particular to your situation.
There are numerous business that can help with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll company. Some popular companies that provide help 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 costs and services.
Please note that the info offered here is based on general knowledge and might not reflect the most recent updates or changes to the ERC. It is very important to consult with a tax expert or check out the official IRS website for the most accurate and current details regarding eligibility, declaring procedures, and readily available support.
Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on earnings paid to all workers whether they actually 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. If the company had more than 100 staff members on average in 2019, then the credit is.
permitted only for incomes paid to workers who did not work during the calendar quarter.
In both cases, “earnings” consists of not just money payments however also a part of the expense of company.
provided health care. Georgia Employee Retention Credit
Payment.
Companies can be immediately reimbursed for the credit by decreasing the quantity of payroll taxes they.