Lets talk first about Infrastructure Employee Retention Credit :
Our group here what do these guys doing everybody in this room is helping teach people about ERC and uh constantly provide a beautiful breakfast and have people really discover the program we ought to head to the room where we are able to show 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 hundreds of millions of dollars so these are replicate copies of the letters that go to customers confirming that the check is on the method I mean you know if you simply start to 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 suggest it’s just I mean consider how many actual customers that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you understand when you
get this you understand the check is chosen sure which’s when they pay so they don’t pay anything till they really receive the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the way they deposit it into their checking account and they can really trust Wonder trust that the process has actually been ended up and how many you think you’ve processed because you started this we’re about 35 000 of these for
about six 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 talking about something truly essential today the staff member retention credit which the majority of you have never ever become aware of I definitely had not heard of it up until extremely just recently and learned a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just phone your bank supervisor and state provide 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’ve become yes the Ambassador and paid representative for this I love this program it’s going away soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund fine go on sorry I just need to make certain we got that point I indicate that’s a huge difference a loan versus money cash I like money money that’s what we’re talking about 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 initial cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual money from the internal revenue service all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual had to be an employee so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned an organization however it’s based upon you having W-2 workers 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 need to be on payroll for the very first six months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part money how much can you return per worker that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s wage to a maximum of 7 thousand per quarter how did that take place um they simply changed 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 approximately 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of money it is now there’s a caution here the PPP money would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten 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 staff members and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial obviously now the big question is why does no one learn about this since appearance when I first became aware of this when I initially fulfilled Josh you understand I have actually got lots of investments in lots of companies I’m a major supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially found out about this I called BS I do not 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 been worthy of and we utilized them wisely to survive throughout the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even called to my politician pals Guv Senators they didn’t know about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a lot of individuals informed me well you can’t get it because 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 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 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 chaos due to the fact that remember in the initial cares act you might not do both programs so if you had done PPP you could not do 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 government never made it clear to anybody about how to.
do this does your CFO understand how to do this not truly she or he’s never done it previously do the banks do it nope the banks do not do it the payroll business yeah a few 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 organization and bottom line my company Kevin has stayed in business because 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 big huge business customers have actually worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, company whose business is fully or partly suspended.
decline by more than 50%.
Schedule.
1. The credit is available to all employers no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that specialize in ERC filing support generally supply expertise and support to help organizations browse the complicated procedure of declaring the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Infrastructure Employee Retention Credit
Eligibility Evaluation: These companies will examine your service’s eligibility for the ERC based on elements such as your industry, earnings, and operations. If you meet the requirements for the credit and recognize the maximum credit quantity you can declare, they can assist determine.
Documents and Estimation: ERC filing services will assist in collecting the needed documents, such as payroll records and financial declarations, to support your claim. They will also help calculate the credit quantity based on qualified incomes and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your past payroll records and financials to recognize potential opportunities for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the essential kinds and documentation on your behalf. This consists of completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have developed in time. These business stay updated with the most recent modifications and ensure that your filings adhere to the most existing guidelines. If the IRS requests additional information or carries out an audit associated to your ERC claim, they can also offer continuous assistance.
It is essential to research study and vet any business using ERC filing assistance to guarantee their credibility and know-how. Look for recognized firms with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax specialists who use ERC submitting assistance.
Remember that while these business can provide important help, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and guarantee precise filings.
The Employee 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 encourage organizations to retain and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit businesses, tax-exempt organizations, and certain governmental entities. To certify, companies must satisfy one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of certified wages paid to employees, including specific health plan expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they got a PPP loan. Nevertheless, the same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling qualified employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to amend prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment income tax return, usually Type 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the company.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have actually progressed in time. The very best course of action is to consult with a tax expert or go to the main internal revenue service website for the most updated and comprehensive info concerning the ERC, consisting of any current legal modifications or updates.
To receive the ERC, an organization should meet one of the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to services of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and organizations that got a PPP loan may have constraints on declaring the credit.
The process for claiming the ERC includes completing the required kinds and consisting of the credit on your employment tax return (normally Type 941). The exact time it takes to process the credit can differ based upon a number of aspects, consisting of the intricacy of your service and the work of the internal revenue service. It’s suggested to consult with a tax expert for assistance specific to your scenario.
There are several companies that can assist with the procedure of declaring the ERC. Some widely known companies that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based on basic understanding and might not show the most current updates or modifications to the ERC. It’s important to speak with a tax expert or visit the official internal revenue service website for the most accurate and current info relating to eligibility, declaring procedures, and readily available help.
Less than 100. If the company had 100 or fewer workers on average in 2019, then the credit is based.
on incomes paid to all employees whether they in fact worked or not. In other words, even if the.
employees 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 workers on average in 2019.
permitted only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “wages” includes not simply cash payments but also a portion of the expense of employer.
offered healthcare. Infrastructure Employee Retention Credit
Payment.
Employers can be right away reimbursed for the credit by minimizing the amount of payroll taxes they.