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Our team here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh always supply a gorgeous breakfast and have people really discover the program we ought to head to the room where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I indicate you understand if you just 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 suggest it’s simply I indicate consider how many real 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 verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you have the ability to track it you understand when you
get this you understand the check is opted for sure which’s when they pay so they do not pay anything till they really receive the cash they do not pay bottom line Wonder trust anything till this letter is validated the check is on the method they deposit it into their checking account and they can genuinely rely on Wonder trust that the procedure has been ended up and the number of you believe you have actually processed given that you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you require you need professionals 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 Wonderful here you’re at my YouTube channel we’re talking about something really crucial today the employee retention credit which the majority of you have actually never ever become aware of I certainly had not heard of it up until very recently and learned a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just 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 inform us all about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone 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 cash payroll tax refund fine go on sorry I simply need to ensure we got that point I imply that’s a huge difference a loan versus cash cash I like cash money 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 initial cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get actual money from the internal revenue service 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 needed 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 service however it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be eligible so you need 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 proper so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one 2 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 favorite part money how much can you return per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the employee’s income 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 staff member’s wage to a maximum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus because the chaos 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 up to 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 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 need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s state hypothetically you owned a restaurant in New York 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 internal revenue service so it’s big clearly now the big concern is why does nobody understand about this due to the fact that appearance when I first found out about this when I initially satisfied Josh you know I’ve got great deals of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make numerous lots of investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t think it since I utilize 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 deserved and we utilized them wisely to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my politician buddies Guv Senators they didn’t understand about it I indicate that’s how you know that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does nobody know about the employee retention credit you understand what’s fascinating you’re speaking about the banks Kevin because in the PPP loan procedure 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 huge 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 just process process that’s all um and here there was turmoil because keep in mind in the initial 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 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 anyone about how to.
do this does your CFO know how to do this not actually he or she’s never 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 business your accountant no your accountant’s never done this before unless you have an account that entered into this company 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 federal government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have actually dealt with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate 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 staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose organization is completely or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Availability.
1. The credit is available to all employers no matter size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by 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 invoices go above 80% of an equivalent 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 qualifying wages paid up to $10,000 in total.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether a company had, on average, basically than.
100 employees in 2019.
Companies that concentrate on ERC filing assistance generally offer competence and assistance to help services browse the complicated procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Innovation Refunds Complaints
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based upon factors such as your market, revenue, and operations. They can help identify if you satisfy the requirements for the credit and identify the optimum credit amount you can declare.
Documentation and Estimation: ERC filing services will assist in collecting the required documentation, such as payroll records and monetary statements, to support your claim. They will likewise help calculate the credit quantity based upon eligible earnings and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you change prior tax returns to declare these refunds.
Filing Support: Business specializing in ERC filings will prepare and submit the necessary types and documentation in your place. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually developed over time. These companies stay updated with the most recent modifications and make sure that your filings adhere to the most existing guidelines. They can likewise provide ongoing support if the internal revenue service requests extra details or carries out an audit related to your ERC claim.
It is very important to research and vet any business providing ERC filing assistance to guarantee their trustworthiness and know-how. Search for established firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax professionals who provide ERC filing support.
Keep in mind that while these business can supply important help, it’s always a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to motivate businesses to keep and pay their workers during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers should satisfy one of two criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As discussed previously, 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 substantial decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease 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 amount is equal to a percentage (approximately 70%) of qualified incomes paid to staff members, including particular health plan 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: Initially, businesses that received an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they got 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 actually been retroactively expanded and enhanced, allowing qualified employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, generally Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC arrangements and eligibility requirements have progressed in time. The best course of action is to seek advice from a tax professional or go to the official internal revenue service website for the most detailed and current info concerning the ERC, including any current legislative modifications or updates.
To receive the ERC, a service should meet one of the following criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a substantial decline is defined 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% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt companies, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan might have limitations on claiming the credit.
The process for claiming the ERC involves finishing the necessary types and including the credit on your work tax return (typically Type 941). The exact time it takes to process the credit can differ based upon several aspects, including the complexity of your business and the workload of the internal revenue service. It’s suggested to talk to a tax expert for guidance particular to your circumstance.
There are several business that can assist with the procedure of claiming the ERC. Some well-known companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based on basic understanding and might not show the most current updates or modifications to the ERC. It is necessary to talk to a tax expert or visit the main IRS site for the most precise and current info relating to eligibility, claiming procedures, and available help.
Less than 100. If the company had 100 or less employees on average 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.
employees worked full time and got paid for full time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
enabled only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not just cash payments however likewise a part of the expense of employer.
provided healthcare. Innovation Refunds Complaints
Payment.
Companies can be immediately reimbursed for the credit by minimizing the quantity of payroll taxes they.