Lets talk first about Innovation Refunds Com Commercial :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have people truly learn more about the program we ought to head to the space where we have the ability to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous countless dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I imply you understand if you simply begin 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 suggest it’s just I indicate consider 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 confirmed the numbers are verified and the check is on the mail in the mail from the internal revenue service 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 opted for 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 method they transfer it into their checking account and they can really trust Wonder trust that the process has been completed and the number of you believe you’ve processed since you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you require you need experts 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 Terrific here you’re at my YouTube channel we’re speaking about something really crucial today the employee retention credit which most of you have never ever become aware of I certainly had not heard of it up until really recently and learned a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I’ve got the specialist 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 difficult this isn’t like PPP we just phone your bank manager and say give me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve ended up being 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 staff member retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses 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 distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money money payroll tax refund fine go on sorry I just have to make sure we got that point I mean that’s a huge difference a loan versus cash cash I like money cash that’s what we’re speaking 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 original cares Act is the ERC and yes Kevin it is a lovely tough check in the mail where you get real cash from the internal revenue service all right so let’s discuss how it works since it seems like to me if it’s a if it’s staff member retention credit that individual needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for employees right you needed to have owned a company but it’s based upon you having W-2 workers 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 eligible 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 walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two 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 get back per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s salary to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s wage to an optimum of seven thousand per quarter how did that occur um they simply changed the rules in.
2021 versus due to the fact that the mayhem 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 as much as 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of money it is now there’s a caution here the PPP money would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would reduce 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 dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big clearly now the big question is why does no one know about this because look when I first became aware of this when I initially fulfilled Josh you understand I’ve got lots of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make lots of numerous investments in business owners of which many suffered through the pandemic when I first 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 and that were well been worthy of and we used them sensibly to stay alive during 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 political leader buddies Governor Senators they didn’t understand about it I imply that’s how you understand that’s how misinformation is that there’s no details out there then a bunch of people informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s intriguing you’re talking about the banks Kevin since 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 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 just procedure procedure that’s all um and here there was mayhem because keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original 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 ever made it clear to any person about how to.
do this does your CFO know how to do this not actually she or he’s never ever done it previously do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this before unless you have an account that went into this business and bottom line my firm Kevin has actually been in business given that 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our big big business clients have actually dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
employer whose business is fully or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Schedule.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is fully or partially suspended by 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. As soon as the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Companies that focus on ERC filing support typically provide proficiency and support to help services browse the complex procedure of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Com Commercial
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based on factors such as your industry, revenue, and operations. If you meet the requirements for the credit and determine the optimum credit quantity you can declare, they can assist identify.
Documentation and Estimation: ERC filing services will help in gathering the required documentation, such as payroll records and financial statements, to support your claim. They will likewise assist compute the credit quantity based upon eligible salaries and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify potential chances for retroactive credits. They can help you modify prior income tax return to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the essential types and documentation in your place. This includes finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have evolved with time. These companies stay upgraded with the most recent modifications and guarantee that your filings abide by the most existing standards. If the Internal revenue service demands extra details or performs an audit associated to your ERC claim, they can likewise provide ongoing assistance.
It’s important to research and veterinarian any company offering ERC filing help to ensure their reliability and proficiency. Try to find recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who use ERC submitting support.
Bear in mind that while these business can supply important help, it’s always a great concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed decisions and make sure 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 measures. The objective of the ERC is to encourage businesses to retain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, companies need to meet one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As pointed out 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 significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices 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 quantity amounts to a percentage (up to 70%) of certified earnings paid to staff members, including particular health insurance expenses. 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 a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they received a PPP loan. The exact same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting eligible companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision offers an opportunity for organizations to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Kind 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the company.
It’s important to note that the ERC arrangements and eligibility requirements have actually developed in time. The very best strategy is to speak with a tax expert or go to the main internal revenue service site for the most up-to-date and detailed information regarding the ERC, consisting of any current legal changes or updates.
To receive the ERC, a business must meet among the following criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. For 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt companies, however there are some exceptions. For instance, federal government entities and businesses that got a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC includes finishing the essential forms and consisting of the credit on your work tax return (generally Type 941). The exact time it takes to process the credit can differ based on a number of elements, including the complexity of your service and the workload of the internal revenue service. It’s recommended to consult with a tax professional for assistance specific to your scenario.
There are several business that can aid with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some popular companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and get in touch with these companies directly to ask about their fees and services.
Please note that the info supplied here is based upon general understanding and may not show the most recent updates or modifications to the ERC. It is very important to seek advice from a tax professional or go to the main IRS site for the most updated and precise details relating to eligibility, claiming procedures, and readily available assistance.
Less than 100. If the company had 100 or fewer employees on average in 2019, then the credit is based.
on earnings paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers 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 employees on average in 2019, then the credit is.
enabled just for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not simply cash payments but likewise a portion of the cost of company.
offered healthcare. Innovation Refunds Com Commercial
Payment.
Companies can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.