Lets talk first about How To Qualify For The Employee Retention Credit :
Our team here what do these guys doing everyone in this room is helping teach individuals about ERC and uh always offer a beautiful breakfast and have individuals truly find out about the program we ought to head to the space where we have the ability to show some of the checks that we are getting for companies and I ‘d like 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 verifying that the check is on the way I indicate you understand if you simply 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 just I imply think of the number of real customers that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you understand when you
receive this you know the check is chosen sure and that’s when they pay so they do not pay anything up until they really get the cash they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the process has actually been completed and the number of you believe you’ve processed considering that you began 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 need 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 Fantastic here you’re at my YouTube channel we’re discussing something actually crucial today the worker retention credit which the majority of you have never ever become aware of I definitely had not heard of it till really just recently and found out a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have workers in between five 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 Ideas 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 just phone 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 inform all of us about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing very soon you got to discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided organizations 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 big distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund fine go on sorry I simply have to ensure we got that point I imply that’s a big distinction a loan versus money money I like cash money 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 gorgeous tough check in the mail where you get actual money from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that person needed to be a staff member 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 needed to have actually owned an organization but it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 employees 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 very first 6 months of 2021 on the W-2 right so there were six 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 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 six quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s income to an optimum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wished 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 as much as 5 thousand Max and then what takes place 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 because that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be lowered 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 say hypothetically you owned a dining establishment in New york city 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 big certainly now the huge concern is why does nobody learn about this because look when I initially found out about this when I initially fulfilled Josh you know I have actually got great deals of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make many numerous financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it because I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we utilized them sensibly to stay alive throughout the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even called to my politician pals Guv Senators they didn’t know about it I suggest that’s how you know that’s how false information is that there’s no information out there then a bunch of people told me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one know about the employee retention credit you understand what’s intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan process the federal government made it extremely clear that if you wanted 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 process process that’s all um and here there was turmoil since keep in mind 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 initial program and when they changed the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the government never made it clear to any person about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it previously 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 accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this company and bottom line my company Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our huge big corporate customers have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Since of COVID-19 or whose gross receipts, employer whose organization is fully or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is offered to all employers regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, typically, basically than.
100 workers in 2019.
Business that focus on ERC filing support typically supply proficiency and assistance to help businesses navigate the complex procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? How To Qualify For The Employee Retention Credit
Eligibility Evaluation: These business will evaluate your company’s eligibility for the ERC based on factors such as your market, profits, and operations. They can help determine if you fulfill the requirements for the credit and identify the maximum credit amount you can claim.
Documents and Computation: ERC filing services will help in collecting the essential paperwork, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit quantity based upon qualified salaries and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can review your previous payroll records and financials to determine potential chances for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the required kinds and documents on your behalf. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually progressed in time. These companies remain upgraded with the current modifications and make sure that your filings comply with the most present standards. If the IRS requests additional information or performs an audit associated to your ERC claim, they can likewise offer continuous support.
It is very important to research and veterinarian any business offering ERC filing support to ensure their trustworthiness and proficiency. Look for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who use ERC filing support.
Bear in mind that while these business can offer important support, it’s always a good concept to have a basic understanding of the ERC requirements and process yourself. This will help you make informed decisions and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate companies to retain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit organizations, tax-exempt organizations, and particular governmental entities. To qualify, employers should meet one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As discussed earlier, for 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of certified wages paid to employees, including certain health insurance costs. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. The same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, usually Kind 941. The excess can be refunded to the company if the credit surpasses the amount of employment taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have evolved over time. The best course of action is to speak with a tax expert or go to the official IRS site for the most in-depth and updated info regarding the ERC, including any recent legislative modifications or updates.
To get approved for the ERC, a business must satisfy one of the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and organizations that received a PPP loan may have limitations on claiming the credit.
The process for claiming the ERC includes completing the essential forms and consisting of the credit on your work tax return (usually Type 941). The exact time it requires to process the credit can vary based upon numerous aspects, consisting of the intricacy of your service and the workload of the IRS. It’s recommended to talk to a tax professional for guidance specific to your circumstance.
There are numerous companies that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some widely known business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these business straight to inquire about their charges and services.
Please note that the information offered here is based upon basic understanding and may not show the most recent updates or modifications to the ERC. It is very important to consult with a tax expert or check out the main internal revenue service site for the most precise and up-to-date information relating to eligibility, declaring procedures, and offered support.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on salaries paid to all employees whether they really worked or not. Simply put, even if the.
staff members worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “wages” consists of not just cash payments however also a part of the cost of company.
supplied healthcare. How To Qualify For The Employee Retention Credit
Payment.
Employers can be right away compensated for the credit by lowering the amount of payroll taxes they.