Lets talk first about Innovation Refund Solutions :
Our team here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly supply a gorgeous breakfast and have individuals really learn about the program we must head to the room where we have the ability 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 countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients confirming 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 indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I mean think about 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 confirmed 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 know when you
get this you know the check is gone for sure which’s when they pay so they do not pay anything until they actually receive the cash they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they transfer it into their savings account and they can genuinely rely on Wonder trust that the process has been finished 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 know 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 one of these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re talking about something truly essential today the worker retention credit which the majority of you have never become aware of I certainly had not become aware of it until really recently and learned a lot about it because this is probably the lowest cost of capital for any small business anywhere
anytime if you have employees 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 largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call your bank supervisor 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 become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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.
fix the cash cash payroll tax refund alright go on sorry I simply have to make certain we got that point I suggest that’s a big difference a loan versus money cash I like cash money 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 hard check in the mail where you get actual cash from the IRS all right so let’s talk about how it works because 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 cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you had to have actually owned a business 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 first six months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part money how much can you return per employee 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 wage to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to a maximum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wished to even get more to keep those staff members 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 after that what happens 21 000 Max in 2021 oh that’s how you develop 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 since that’s a lot of money it is now there’s a caution here the PPP cash would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing on average 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 City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge obviously now the huge concern is why does nobody learn about this because look when I initially heard about this when I initially met Josh you understand I have actually got great deals of investments in great deals of companies I’m a major supporter 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 do not believe it since I use the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we used them wisely to survive throughout the pandemic so when I became aware of 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 understand about it I imply that’s how you know that’s how misinformation is that there’s no info out there then a lot of people told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody understand about the staff member retention credit you know what’s intriguing you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it really clear that if you desired 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 due to the fact that keep in mind in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly she or he’s never ever 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 accounting professional no your accounting professional’s never done this before unless you have an account that entered into this organization and bottom line my firm Kevin has actually stayed in business since 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have actually dealt with bottom line to recover other government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal 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 up to $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, employer whose organization is fully or partially suspended.
decline by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’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 before December 31, 2020.
The definition of certifying incomes differs by whether a company had, typically, more or less than.
100 employees in 2019.
Business that focus on ERC filing help typically offer proficiency and assistance to assist organizations browse the complex process of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Innovation Refund Solutions
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based on elements such as your market, profits, and operations. They can help identify if you meet the requirements for the credit and recognize the maximum credit amount you can declare.
Paperwork and Estimation: ERC filing services will assist in gathering the essential documentation, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit amount based upon eligible incomes and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can review your past payroll records and financials to determine possible chances for retroactive credits. They can help you amend previous income tax return to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and submit the necessary types and documents on your behalf. This includes completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed gradually. These business stay upgraded with the latest modifications and guarantee that your filings abide by the most existing standards. They can likewise provide continuous support if the IRS requests additional details or conducts an audit related to your ERC claim.
It is essential to research and vet any business offering ERC filing support to guarantee their credibility and competence. Try to find recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who provide ERC filing assistance.
Bear in mind that while these business can provide important assistance, it’s always an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure 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 steps. The goal of the ERC is to motivate services to retain and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To certify, employers must meet one of two requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As mentioned earlier, for 2021, a substantial decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline 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 right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of certified incomes paid to employees, including specific health plan expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that received an Income Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they received a PPP loan. However, the same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, permitting eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to change prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, usually Form 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the employer.
It is necessary to note that the ERC provisions and eligibility requirements have evolved in time. The very best strategy is to consult with a tax professional or check out the main IRS site for the most current and in-depth info concerning the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, an organization should satisfy one of the following requirements:.
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 invoices. For 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline 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 readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and businesses that got a PPP loan may have limitations on claiming the credit.
The process for claiming the ERC involves finishing the essential types and including the credit on your work tax return (normally Type 941). The exact time it requires to process the credit can differ based upon several aspects, including the complexity 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 a number of companies that can assist with the process of declaring the ERC. Some well-known business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based on general understanding and may not show the most recent updates or modifications to the ERC. It is essential to seek advice from a tax expert or check out the main internal revenue service site for the most accurate and updated details regarding eligibility, claiming procedures, and readily available help.
Less than 100. If the company had 100 or fewer employees typically in 2019, then the credit is based.
on earnings paid to all workers whether they really worked or not. To put it simply, even if the.
staff members worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
allowed only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just money payments however also a portion of the cost of company.
provided health care. Innovation Refund Solutions
Companies can be right away repaid for the credit by decreasing the amount of payroll taxes they.