Lets talk first about Innovation Refunds Better Business Bureau :
Our team here what do these men doing everyone in this room is assisting teach people about ERC and uh always offer a beautiful breakfast and have individuals actually discover the program we must head to the room where we have the ability to display 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 countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I mean you understand if you just begin to take a look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I suggest think of the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are confirmed 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 understand when you
receive this you understand 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 until this letter is verified the check is on the method they deposit it into their savings account and they can genuinely trust Wonder trust that the procedure has been ended up and the number of you believe you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you need 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 actually essential today the staff member retention credit which most of you have actually never heard of I certainly had not heard of it till very recently and found out a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have employees between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call your bank manager and state offer 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 ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away very soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a big difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash money payroll tax refund all right 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 money 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 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 seems like to me if it’s a if it’s employee retention credit that individual needed to be a worker so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have owned a business however it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 staff members 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 two 3 and four of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my preferred part cash just how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to a maximum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus because the chaos 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 as much as 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create 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 great deal of cash 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 minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say 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 IRS so it’s big undoubtedly now the big question is why does no one understand about this because look when I first found out about this when I initially fulfilled Josh you understand I’ve got lots of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make numerous many investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t believe it since I utilize 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 deserved and we used them carefully to survive during the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t learn about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a lot of individuals informed me well you can’t get it because you took the PPP likewise not true 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 very 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 procedure 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 mayhem since keep in mind in the initial cares act you could not do both programs so if you had done PPP you might not do 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 government never made it clear to any person about how to.
do this does your CFO understand how to do this not actually he or she’s never done it before 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 accounting professional 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 actually been in business because 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have worked with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, company whose company is fully or partly suspended.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is totally 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 comparable quarter in 2019. When the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of certifying wages differs by whether an employer had, usually, basically than.
100 employees in 2019.
Companies that specialize in ERC filing help generally provide competence and support to assist services navigate the intricate procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Innovation Refunds Better Business Bureau
Eligibility Assessment: These business will evaluate your company’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. If you satisfy the requirements for the credit and identify the maximum credit amount you can declare, they can help identify.
Documents and Computation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit quantity based upon eligible salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can examine your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you modify prior income tax return to claim these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the necessary kinds and paperwork on your behalf. This includes finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have evolved with time. These business stay upgraded with the most recent changes and ensure that your filings abide by the most existing guidelines. They can likewise provide ongoing support if the IRS demands additional information or performs an audit related to your ERC claim.
It’s important to research and veterinarian any company providing ERC filing help to guarantee their credibility and expertise. Try to find established companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who offer ERC filing support.
Keep in mind that while these companies can supply valuable assistance, it’s constantly a good idea to have a basic understanding of the ERC requirements and procedure 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. federal government as part of COVID-19 relief procedures. The objective of the ERC is to encourage businesses to retain and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, employers should meet one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As mentioned earlier, for 2021, a substantial decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross invoices compared to the 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 employer’s share of Social Security taxes. The credit quantity 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: At first, services that got an Income 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 received a PPP loan. The very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, permitting eligible employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to modify prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Kind 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the employer.
It is very important to note that the ERC provisions and eligibility requirements have actually progressed over time. The best strategy is to seek advice from a tax professional or check out the main IRS website for the most updated and detailed information relating to the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, a company needs to meet one of the following requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a significant decline is defined as a 20% decrease 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 invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For example, government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the required forms and including the credit on your work tax return (typically Form 941). The exact time it requires to process the credit can vary based on numerous factors, including the intricacy of your organization and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for assistance specific to your situation.
There are a number of business that can aid with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll provider. Some popular business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these business straight to ask about their costs and services.
Please keep in mind that the info offered here is based upon basic understanding and may not reflect the most recent updates or modifications to the ERC. It is necessary to seek advice from a tax professional or check out the official IRS site for the most precise and current information regarding eligibility, claiming treatments, and readily available help.
Less than 100. If the company had 100 or fewer staff members usually in 2019, then the credit is based.
on salaries paid to all workers whether they in fact worked or not. Simply put, even if the.
staff members worked full-time and made money for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled only for earnings 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 employer.
provided healthcare. Innovation Refunds Better Business Bureau
Companies can be right away compensated for the credit by reducing the quantity of payroll taxes they.