Lets talk first about How Will I Receive My Employee Retention Credit Refund :
Our team here what do these guys doing everybody in this space is assisting teach individuals about ERC and uh constantly supply a gorgeous breakfast and have people truly learn about the program we must head to the room where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of 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 method I indicate you know if you simply begin to take a look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I indicate think about 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 validated and the check is on the mail in the mail from the IRS heading to the customer 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 which’s when they pay so they don’t pay anything up until they actually receive the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their savings account and they can truly trust Wonder trust that the process has actually been finished and how many you think you have actually 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 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 Wonderful here you’re at my YouTube channel we’re speaking about something actually essential today the staff member retention credit which the majority of you have never ever heard of I definitely hadn’t heard of it until very recently and found out a lot about it due to the fact that this is probably the most affordable cost of capital for any small company anywhere
anytime if you have employees 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 largest processor of these ERC credits this is a 170 page program so it’s challenging 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 inform us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to find out everything about it let’s talk staff member 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 provided organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash cash payroll tax refund okay go on sorry I just have to ensure we got that point I mean that’s a big distinction a loan versus money cash I like cash cash that’s what we’re speaking about all right 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 gorgeous difficult check in the mail where you get real money from the IRS all right so let’s speak about how it works since it sounds like to me if it’s a if it’s staff member 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 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 on you having W-2 staff members 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 six months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my preferred part money how much can you return 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 worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s income to a maximum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus due to the fact that 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 up to 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of cash it is now there’s a caution 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 reduce the 26 000 so what we’re seeing usually 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 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 obviously now the big question is why does nobody know about this because appearance when I first heard about this when I initially satisfied Josh you understand I’ve got great deals of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make numerous numerous financial investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t think it due to the fact that 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 should have and we used them wisely 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 good friends Governor Senators they didn’t know about it I suggest that’s how you understand that’s how false information is that there’s no info out there then a lot of people informed 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 nobody learn about the employee retention credit you know what’s intriguing you’re speaking about the banks Kevin since in the PPP loan procedure 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 huge 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 just procedure procedure that’s all um and here there was chaos due to the fact that keep in mind in the original 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 since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’s never done it previously do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this service and bottom line my company Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge huge business customers have dealt with bottom line to recover other government programs we have actually 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 government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
employer whose organization is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all employers regardless of size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries varies by whether an employer had, typically, more or less than.
100 workers in 2019.
Business that specialize in ERC filing assistance generally supply proficiency and assistance to assist companies navigate the intricate process of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? How Will I Receive My Employee Retention Credit Refund
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based upon factors such as your industry, income, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can claim, they can help figure out.
Documents and Estimation: ERC filing services will assist in collecting the required documents, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit quantity based on eligible earnings and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can review your past payroll records and financials to identify possible chances for retroactive credits. They can help you amend prior income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the required kinds and documentation in your place. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved gradually. These companies remain updated with the latest modifications and ensure that your filings adhere to the most present guidelines. If the Internal revenue service demands additional details or conducts an audit associated to your ERC claim, they can likewise supply continuous assistance.
It is essential to research and veterinarian any company offering ERC filing assistance to ensure their credibility and knowledge. Look for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who use ERC submitting assistance.
Remember that while these companies can offer important support, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will help you make informed choices and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to encourage businesses to retain 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 qualified companies, consisting of for-profit organizations, tax-exempt companies, and specific governmental entities. To qualify, companies should satisfy one of two requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As discussed previously, 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 significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a portion (up to 70%) of qualified salaries paid to staff members, consisting of specific health insurance costs. 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, companies that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they received a PPP loan. The exact same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, allowing eligible companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to modify prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Type 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the company.
It is very important to note that the ERC arrangements and eligibility requirements have actually evolved with time. The very best course of action is to seek advice from a tax expert or go to the main internal revenue service site for the most current and in-depth information regarding the ERC, including any recent legal modifications or updates.
To receive the ERC, an organization needs to fulfill one of the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified 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 instantly preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, federal government entities and services that received a PPP loan may have limitations on claiming the credit.
The process for declaring the ERC includes finishing the essential types and including the credit on your employment income tax return (typically Type 941). The exact time it requires to process the credit can vary based upon numerous aspects, consisting of the intricacy of your organization and the workload of the internal revenue service. It’s recommended to speak with a tax expert for assistance particular to your scenario.
There are several companies that can aid with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some popular companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these business straight to ask about their services and fees.
Please note that the info supplied here is based on general knowledge and might not reflect the most current updates or changes to the ERC. It is essential to speak with a tax professional or go to the official internal revenue service site for the most current and accurate info concerning eligibility, declaring treatments, and available help.
Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on salaries paid to all workers whether they actually worked or not. To put it simply, even if the.
employees worked full time and got paid for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
enabled just for earnings paid to workers who did not work during the calendar quarter.
In both cases, “incomes” includes not simply cash payments but likewise a part of the expense of company.
offered health care. How Will I Receive My Employee Retention Credit Refund
Employers can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.