Lets talk first about Infrastructure Bill And Employee Retention Credit :
Our group here what do these guys doing everybody in this room is helping teach individuals about ERC and uh constantly offer a stunning breakfast and have people really find out about the program we need to head to the space where we are able to display some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars literally Kevin numerous millions of 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 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 mean it’s just I imply consider the number of actual customers that went through the program yeah this is the very end this is the celebration 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 client so that’s how you’re able to track it you know when you
get this you understand the check is chosen sure which’s when they pay so they don’t pay anything till they in fact get the money they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they transfer it into their savings account and they can genuinely rely on Wonder trust that the procedure has actually been completed and the number of you believe you have actually processed given that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing which’s what you require 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 talking about something actually crucial today the staff member retention credit which most of you have never become aware of I definitely had not heard of it up until very recently and discovered a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have staff members in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call up your bank manager and say provide me a loan it does not work there’s not a loan it’s an application and Josh is going to tell us all about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I enjoy this program it’s going away very soon you got to discover all about it let’s talk staff member 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 used organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I simply have to make certain we got that point I imply that’s a big distinction a loan versus money cash 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 lovely hard check in the mail where you get real money from the IRS all right so let’s talk about how it works because it sounds like to me if it’s a if it’s worker retention credit that individual had to be an employee so I’m going to make the Assumption 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 however it’s based upon 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 very first 6 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 two 3 and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you return 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 staff member’s income to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that take place um they simply 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 takes place 21 000 Max in 2021 oh that’s how you come up with 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 lot of cash it is now there’s a caution here the PPP cash would have to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP money 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 huge obviously now the huge question is why does no one learn about this because appearance when I first heard about this when I initially satisfied Josh you know I have actually got great deals of investments in lots of companies I’m a major advocate for entrepreneurship in America and make numerous numerous investments in business owners of which numerous 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 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 been worthy of and we used them sensibly to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t learn about it I suggest that’s how you understand that’s how false information is that there’s no details out there then a lot of people informed me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s fascinating you’re speaking about the banks Kevin because in the PPP loan process the federal government made it really 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 procedure that’s all um and here there was mayhem because remember in the original cares act you could refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the original program and when they altered 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 federal government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it previously do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this service and bottom line my firm Kevin has been in business since 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our big huge business customers have actually worked with bottom line to recuperate other government programs we have actually 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 government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
company whose service is totally or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all employers regardless of size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer certify.
after the end 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 certifying incomes differs by whether a company had, on average, more or less than.
100 workers in 2019.
Business that focus on ERC filing support typically provide expertise and support to help businesses navigate the complicated procedure of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Infrastructure Bill And Employee Retention Credit
Eligibility Evaluation: These business will assess your organization’s eligibility for the ERC based on aspects such as your industry, earnings, and operations. They can assist identify if you meet the requirements for the credit and determine the maximum credit quantity you can claim.
Documents and Estimation: ERC filing services will help in collecting the necessary documents, such as payroll records and financial statements, to support your claim. They will also help calculate the credit amount based on qualified wages and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these companies can review your past payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you change previous tax returns to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the necessary forms and documents on your behalf. This consists of finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have actually developed gradually. These business stay updated with the current modifications and make sure that your filings comply with the most current standards. They can also supply ongoing support if the internal revenue service requests extra information or performs an audit related to your ERC claim.
It’s important to research and veterinarian any company offering ERC filing assistance to guarantee their credibility and competence. Try to find recognized firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax professionals who offer ERC filing support.
Keep in mind that while these business can offer important assistance, it’s constantly a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed choices and ensure 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 procedures. The goal of the ERC is to encourage businesses to keep and pay their workers during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit businesses, tax-exempt organizations, and specific governmental entities. To certify, companies need to meet one of two criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned earlier, 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 significant decrease is defined as a 20% decline in gross invoices 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 company’s share of Social Security taxes. The credit quantity is equal to a percentage (as much as 70%) of certified wages paid to employees, consisting of specific health insurance expenditures. 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: At first, companies that received an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they received a PPP loan. The very same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, allowing qualified companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers a chance for services to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, normally Type 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the company.
It is essential to note that the ERC provisions and eligibility criteria have progressed with time. The best course of action is to seek advice from a tax professional or check out the main IRS site for the most current and detailed information concerning the ERC, consisting of any current legislative modifications or updates.
To receive the ERC, a business must fulfill one of the following criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. For instance, government entities and businesses that got a PPP loan may have limitations on claiming the credit.
The procedure for declaring the ERC involves completing the required kinds and including the credit on your employment tax return (usually Kind 941). The exact time it takes to process the credit can differ based upon several factors, consisting of the complexity of your company and the workload of the internal revenue service. It’s advised to talk to a tax expert for guidance particular to your scenario.
There are a number of companies that can help with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll company. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and get in touch with these companies straight to ask about their services and costs.
Please note that the details offered here is based on general understanding and might not reflect the most recent updates or changes to the ERC. It’s important to seek advice from a tax professional or visit the main internal revenue service site for the most up-to-date and accurate details regarding eligibility, declaring treatments, and offered help.
Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on earnings paid to all workers whether they really worked or not. Simply put, even if the.
employees worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 staff members typically in 2019, then the credit is.
allowed just for wages paid to employees who did not work during the calendar quarter.
In both cases, “wages” includes not simply cash payments however also a part of the cost of company.
offered health care. Infrastructure Bill And Employee Retention Credit
Employers can be instantly compensated for the credit by lowering the quantity of payroll taxes they.