Lets talk first about How Do You Get Employee Retention Credit :
Our team here what do these men doing everyone in this room is helping teach individuals about ERC and uh always provide a beautiful breakfast and have people truly find out about the program we need to head to the room where we have the ability to show some of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I indicate you know if you just begin to take a look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I imply think of how many real clients that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything till they really get the money they don’t pay bottom line Wonder trust anything until this letter is verified 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’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’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 truly important today the employee retention credit which the majority of you have actually never heard of I certainly had not become aware of it till extremely recently and found out a lot about it due to the fact that this is most likely 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 Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just contact your bank manager and say 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’ve 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 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 three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash cash payroll tax refund all right go on sorry I simply have to make certain we got that point I indicate that’s a huge difference a loan versus cash money I like cash money that’s what we’re discussing 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 beautiful hard check in the mail where you get real money from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s employee retention credit that individual had to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have actually owned a business but 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 right so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my favorite part cash just how much can you get back per employee that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the employee’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s income to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wanted 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 after that what happens 21 000 Max in 2021 oh that’s how you come up with 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 lot of money it is now there’s a caution 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 typically Kevin is if you took PPP cash somewhere around ten thousand dollars a person so let’s state 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 internal revenue service so it’s big clearly now the huge question is why does nobody understand about this because appearance when I initially became aware of this when I first met Josh you understand I have actually got lots of investments in great deals of business I’m a major advocate for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I do not believe it since I use the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them wisely to stay alive during the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even called to my political leader buddies Governor Senators they didn’t understand 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 people told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody know about the staff member retention credit you understand what’s interesting you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it extremely clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 process process that’s all um and here there was turmoil due to the fact that remember in the initial cares act you might not do both programs so if you had 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 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 truly she or he’s never ever done it previously 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 business your accounting professional no your accountant’s never done this before unless you have an account that entered into this organization and bottom line my firm Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big big business clients have dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work opportunity 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 created to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose organization is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all employers despite size consisting of tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To qualify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
employer’s gross invoices exceed 80% of a similar 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 certifying earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying incomes varies by whether an employer had, typically, basically than.
100 workers in 2019.
Business that concentrate on ERC filing support generally supply proficiency and assistance to help businesses navigate the complicated process of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? How Do You Get Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based on aspects such as your market, profits, and operations. They can help determine if you meet the requirements for the credit and identify the optimum credit amount you can claim.
Documents and Calculation: ERC filing services will assist in gathering the needed documents, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit quantity based on eligible incomes and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can review your previous payroll records and financials to determine potential chances for retroactive credits. They can help you modify previous income tax return to claim these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and submit the needed types and documents in your place. This consists of finishing Type 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have actually evolved gradually. These business remain upgraded with the current changes and guarantee that your filings abide by the most present standards. If the IRS demands additional info or performs an audit associated to your ERC claim, they can likewise provide ongoing support.
It is essential to research and veterinarian any business offering ERC filing assistance to guarantee their reliability and proficiency. Try to find recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who use ERC filing support.
Remember that while these business can provide valuable support, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified 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 measures. The goal of the ERC is to encourage businesses to retain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit services, tax-exempt companies, and specific governmental entities. To qualify, employers need to fulfill one of two criteria:.
The 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. As mentioned previously, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline 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 quantity amounts to a portion (approximately 70%) of qualified wages paid to employees, consisting of particular 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, services that received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. Nevertheless, the exact same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, allowing eligible employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for services to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, normally Type 941. The excess can be refunded to the employer if the credit exceeds the quantity of work taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have progressed with time. The best course of action is to consult with a tax expert or go to the main internal revenue service site for the most updated and detailed information concerning the ERC, including any current legislative changes or updates.
To receive the ERC, a business needs to meet among the following criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross invoices compared to the 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 companies, however there are some exceptions. For example, federal government entities and companies that received a PPP loan might have limitations on claiming the credit.
The procedure for declaring the ERC includes completing the essential kinds and including the credit on your work tax return (usually Form 941). The exact time it requires to process the credit can differ based on a number of factors, including the complexity of your service and the workload of the IRS. It’s advised to seek advice from a tax expert for assistance specific to your scenario.
There are numerous business that can aid with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll company. Some popular companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these companies directly to ask about their charges and services.
Please keep in mind that the details supplied here is based on general understanding and may not reflect the most current updates or changes to the ERC. It’s important to speak with a tax professional or visit the main internal revenue service website for the most updated and precise info regarding eligibility, claiming treatments, and offered 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. To put it simply, even if the.
employees worked full-time and earned money for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers on average in 2019, then the credit is.
permitted just for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply cash payments however likewise a portion of the expense of employer.
offered healthcare. How Do You Get Employee Retention Credit
Employers can be right away reimbursed for the credit by decreasing the amount of payroll taxes they.