Lets talk first about How To Check Status Of Employee Retention Credit Refund :
Our group here what do these men doing everyone in this space is assisting teach individuals about ERC and uh constantly offer a stunning breakfast and have individuals really find out about the program we must head to the space where we are able 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 actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I imply you know if you simply start to take a look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I suggest consider how many actual customers 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 internal revenue service heading to the client so that’s how you have the ability to track it you understand when you
receive this you understand the check is chosen sure and that’s when they pay so they don’t pay anything up until they really receive the cash they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they deposit it into their checking account and they can genuinely rely on Wonder trust that the process has actually been ended up and how many you believe you’ve processed considering that you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you need 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 Wonderful here you’re at my YouTube channel we’re talking about something really crucial today the worker retention credit which most of you have never ever become aware of I definitely had not heard of it till extremely recently and found out a lot about it because this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees in between five and five hundred so I’ve got the specialist 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 simply phone your bank manager and state offer 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 have actually become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big distinction 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 alright go on sorry I just need to make sure we got that point I imply that’s a huge difference a loan versus money cash I like money cash that’s what we’re speaking 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 actual 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 employee retention credit that person had to be an employee 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 workers right you had to have actually owned a company however it’s based on you having W-2 employees 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 eligible so you have to be on payroll in 2020 on the W-2 and you need 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 walk us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part money how much can you get back per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that occur um they simply changed 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 then what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 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 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 reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial obviously now the big question is why does nobody understand about this since appearance when I first became aware of this when I initially met Josh you understand I have actually got lots of investments in lots of business I’m a significant supporter for entrepreneurship in America and make many many financial investments in business owners of which lots of suffered through the pandemic when I initially heard about this I called BS I don’t think it because I use the PPP we went through the cash center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them sensibly to stay alive throughout the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even called to my political leader pals 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 bunch of people told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody know about the employee retention credit you understand what’s fascinating you’re speaking about the banks Kevin because 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 huge 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 just procedure procedure that’s all um and here there was mayhem because remember in the initial cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the government never made it clear to anybody 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 don’t do it the payroll companies 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 entered into this company and bottom line my firm Kevin has actually stayed in business given that 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our huge big corporate clients have actually worked with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
company whose business is fully or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is offered to all companies regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying wages differs by whether a company had, on average, basically than.
100 workers in 2019.
Business that concentrate on ERC filing assistance typically offer expertise and support to help organizations browse the complicated process of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? How To Check Status Of Employee Retention Credit Refund
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon factors such as your market, revenue, and operations. They can assist figure out if you meet the requirements for the credit and determine the maximum credit amount you can claim.
Paperwork and Calculation: ERC filing services will assist in collecting the essential documentation, such as payroll records and financial statements, to support your claim. They will likewise help calculate the credit amount based upon eligible earnings and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you modify previous income tax return to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the essential types and documentation in your place. This consists of finishing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have actually evolved in time. These business stay updated with the current modifications and guarantee that your filings abide by the most present standards. If the IRS demands additional details or carries out an audit related to your ERC claim, they can likewise supply ongoing support.
It is necessary to research study and veterinarian any company providing ERC filing assistance to ensure their trustworthiness and competence. Try to find established companies with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax experts who use ERC submitting assistance.
Keep in mind that while these business can provide important assistance, it’s always a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to motivate companies to keep and pay their staff members during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, consisting of for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, employers need to fulfill one of two requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As mentioned earlier, for 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a percentage (approximately 70%) of qualified earnings paid to workers, consisting of specific health insurance expenses. 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: Initially, businesses that received an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. The same earnings 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 qualified companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to modify prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, generally Kind 941. If the credit goes beyond the amount of employment taxes owed, the excess can be refunded to the company.
It is necessary to note that the ERC arrangements and eligibility criteria have progressed in time. The best strategy is to talk to a tax expert 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 get approved for the ERC, a service should fulfill one of the following requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and businesses that received a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC involves finishing the required forms and consisting of the credit on your work income tax return (usually Type 941). The exact time it takes to process the credit can differ based upon numerous aspects, consisting of the intricacy of your organization and the workload of the IRS. It’s advised to consult with a tax professional for guidance particular to your situation.
There are a number of business that can assist with the process of declaring the ERC. Some widely known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info provided 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 expert or go to the main IRS site for the most accurate and current details relating to eligibility, declaring procedures, and available help.
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.
staff members worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees on average in 2019, then the credit is.
allowed just for earnings paid to workers who did not work during the calendar quarter.
In both cases, “earnings” includes not simply cash payments but also a part of the cost of employer.
offered healthcare. How To Check Status Of Employee Retention Credit Refund
Companies can be immediately reimbursed for the credit by reducing the amount of payroll taxes they.