Lets talk first about How To Check Status Of Employee Retention Credit :
Our group here what do these men doing everybody in this room is helping teach people about ERC and uh constantly offer a lovely breakfast and have individuals really discover the program we must head to the room where we are able to display some of the checks that we are getting for business and I wish to see that what is this this is uh numerous 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 understand if you just 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 simply I imply think of the number of 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 verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything until they in fact receive the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their savings account and they can genuinely trust Wonder trust that the procedure has been ended up and the number of you believe you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand 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 one of these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re talking about something truly crucial today the employee retention credit which the majority of you have actually never ever heard of I certainly hadn’t heard of it till very just recently and learned a lot about it due to the fact that this is probably the most affordable expense of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder 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 contact your bank manager and say 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 become yes the Ambassador and paid representative for this I enjoy 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 throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money cash payroll tax refund fine go on sorry I just need to ensure we got that point I mean that’s a huge distinction a loan versus money money I like cash cash that’s what we’re talking 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 lovely difficult check in the mail where you get real money from the IRS 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 person needed to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for staff members right you needed to have owned a company but it’s based upon 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 have to be on payroll for the first six months of 2021 on the W-2 appropriate 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 two and three of 2021. okay 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 staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the turmoil of the pandemic so they wanted 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 approximately 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you create 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 since that’s a great deal of cash it is now there’s a caveat here the PPP cash would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment 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 internal revenue service so it’s big obviously now the huge question is why does nobody know about this due to the fact that appearance when I first heard about this when I initially met Josh you understand I’ve got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out 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 really easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we utilized them wisely to survive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even contacted us to my politician good friends Governor Senators they didn’t learn about it I mean that’s how you know that’s how misinformation is that there’s no info out there then a lot of individuals told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one learn 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 really 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 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 due to the fact that 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 made it clear to anyone 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 companies yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this business and bottom line my company Kevin has stayed in business considering 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 lot of our huge huge corporate customers have worked 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 property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
company whose organization is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Schedule.
1. The credit is readily available to all companies no matter size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. When the.
employer’s gross invoices go above 80% of a comparable quarter in 2019 they no longer qualify.
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 definition of qualifying incomes differs by whether a company had, typically, more or less than.
100 workers in 2019.
Companies that focus on ERC filing assistance usually offer proficiency and support to assist services 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
Eligibility Evaluation: These business will assess your business’s eligibility for the ERC based upon elements such as your industry, income, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can declare, they can assist determine.
Paperwork and Computation: ERC filing services will help in gathering the essential documentation, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit amount based upon eligible incomes and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can examine your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you amend prior income tax return to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the required types and documents in your place. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have evolved over time. These business stay upgraded with the latest modifications and guarantee that your filings abide by the most current standards. They can also supply ongoing assistance if the IRS requests additional details or carries out an audit related to your ERC claim.
It’s important to research study and vet any business providing ERC filing assistance to ensure their credibility and competence. Search for recognized firms with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax experts who provide ERC submitting support.
Keep in mind that while these business can offer important support, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified choices and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage companies to maintain and pay their workers 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 businesses, tax-exempt companies, and certain governmental entities. To certify, employers need to fulfill one of two requirements:.
The 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. As pointed out earlier, for 2021, a substantial decline is specified 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% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away 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 percentage (up to 70%) of certified earnings paid to employees, consisting of specific 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 got an Income Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they received a PPP loan. The exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, allowing eligible employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for companies to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work tax returns, generally Kind 941. If the credit surpasses the amount of employment taxes owed, the excess can be reimbursed to the company.
It is necessary to note that the ERC provisions and eligibility criteria have progressed gradually. The very best strategy is to speak with a tax professional or visit the official IRS website for the most comprehensive and up-to-date information concerning the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a business needs to fulfill among the following criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and businesses that received a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC includes finishing the needed types and including the credit on your employment income tax return (generally Form 941). The exact time it requires to process the credit can vary based upon several elements, consisting of the complexity of your organization and the work of the internal revenue service. It’s recommended to talk to a tax expert for guidance particular to your scenario.
There are several companies that can help with the procedure of claiming the ERC. Some widely known companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details offered here is based upon basic understanding and may not show the most current updates or modifications to the ERC. It is very important to talk to a tax expert or check out the main internal revenue service website for the most up-to-date and precise details regarding eligibility, declaring treatments, and available help.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on wages paid to all staff members whether they actually worked or not. Simply put, even if the.
staff members worked full time and got paid for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
allowed just for incomes paid to workers who did not work during the calendar quarter.
In both cases, “salaries” includes not just cash payments but also a part of the expense of employer.
offered healthcare. How To Check Status Of Employee Retention Credit
Payment.
Companies can be immediately repaid for the credit by minimizing the amount of payroll taxes they.