Lets talk first about Hurricane Florence Employee Retention Credit :
Our team here what do these men doing everyone in this space is helping teach people about ERC and uh constantly provide a beautiful breakfast and have people actually discover the program we should head to the room where we have the ability to display some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I indicate you know if you simply begin to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I suggest consider how many actual clients 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 internal revenue service 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 up until they actually get the money they don’t pay bottom line Wonder trust anything until 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 procedure has actually been finished and the number of you think you’ve processed given that you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’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 Wonderful here you’re at my YouTube channel we’re discussing something actually essential today the employee retention credit which the majority of you have never heard of I definitely hadn’t heard of it till really 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 five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 simply call your bank manager and state offer 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 discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided services three chances 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund okay go on sorry I just need to make certain we got that point I suggest that’s a huge difference a loan versus money cash I like cash cash 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 original cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works since it seems 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 Assumption this money is not for the owner not for individuals on the cap table not for investors 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 workers 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 first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you return per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s salary to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus since the mayhem 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 up to five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty six 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 lot of money it is now there’s a caveat here the PPP cash would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars an individual 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 internal revenue service so it’s big undoubtedly now the big question is why does no one learn about this due to the fact that appearance when I initially heard about this when I first met Josh you understand I’ve got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous many financial investments in entrepreneurs of which numerous suffered through the pandemic when I first heard about this I called BS I don’t think it since I use the PPP we went through the money 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 deserved and we used them carefully to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my political leader good friends Guv Senators they didn’t understand about it I suggest that’s how you understand that’s how false information is that there’s no information out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one know about the staff member retention credit you know what’s fascinating you’re discussing the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very clear that if you wanted 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 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 not do ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really 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 business your accountant no your accountant’s never ever done this before unless you have an account that went into this business and bottom line my company Kevin has been in business given 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 huge corporate customers have dealt with bottom line to recover other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance 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 developed to motivate.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, employer whose service is totally or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is available to all employers despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is totally or partially 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 comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying wages differs by whether a company had, typically, basically than.
100 workers in 2019.
Business that focus on ERC filing help normally supply knowledge and support to help businesses browse the intricate process of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? Hurricane Florence Employee Retention Credit
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based upon elements such as your industry, revenue, and operations. If you meet the requirements for the credit and determine the optimum credit amount you can claim, they can assist determine.
Documents and Estimation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and monetary statements, to support your claim. They will also help compute the credit quantity based upon eligible incomes and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you change prior tax returns to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and send the essential forms and documentation in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have progressed in time. These companies stay upgraded with the latest changes and guarantee that your filings abide by the most present guidelines. They can likewise provide continuous support if the internal revenue service requests extra info or conducts an audit related to your ERC claim.
It’s important to research and vet any company providing ERC filing support to guarantee their trustworthiness and expertise. Try to find recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax experts who provide ERC filing support.
Keep in mind that while these companies can supply important support, it’s constantly a great concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified choices and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate companies to maintain and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, employers should satisfy one of two criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As discussed previously, for 2021, a significant decline is specified as a 20% decline in gross receipts compared to the very 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 immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a portion (up to 70%) of certified wages paid to employees, consisting of certain health plan expenditures. 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: At first, organizations that got an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to claim 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 Provision: The ERC has actually been retroactively broadened and boosted, permitting qualified employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for businesses to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be reimbursed to the company if the credit surpasses the quantity of work taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have actually evolved with time. The best course of action is to talk to a tax expert or visit the official internal revenue service site for the most detailed and up-to-date info relating to the ERC, including any current legislative modifications or updates.
To receive the ERC, a company should fulfill one of the following criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The process for declaring the ERC involves finishing the necessary forms and consisting of the credit on your work tax return (normally Form 941). The exact time it takes to process the credit can vary based upon several aspects, including the complexity of your organization and the work of the IRS. It’s advised to seek advice from a tax professional for assistance specific to your scenario.
There are several business that can aid with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some widely known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these companies straight to inquire about their fees and services.
Please note that the information offered here is based upon general knowledge and may not reflect the most current updates or modifications to the ERC. It is necessary to talk to a tax expert or check out the official internal revenue service website for the most updated and precise details relating to eligibility, claiming procedures, and offered support.
Less than 100. The credit is based if the employer had 100 or less 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 company still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
enabled only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments but also a part of the cost of company.
offered health care. Hurricane Florence Employee Retention Credit
Payment.
Employers can be right away compensated for the credit by decreasing the quantity of payroll taxes they.