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Our group here what do these guys doing everyone in this room is helping teach individuals about ERC and uh always provide a beautiful breakfast and have individuals actually find out about the program we ought to head to the room where we have the ability to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I mean you know if you simply start to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I indicate think about how many real clients that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability 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 up until they actually receive the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they transfer it into their bank 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 since you started this we’re about 35 000 of these for
about six 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something truly important today the worker retention credit which the majority of you have actually never heard of I definitely hadn’t heard of it till extremely recently and learned a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just call your bank supervisor and state give me a loan it doesn’t 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 have actually ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund all right go on sorry I just need to make sure we got that point I suggest that’s a huge difference a loan versus money money I like cash 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 lovely hard check in the mail where you get actual money from the IRS all right so let’s speak about how it works since 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 Presumption this cash is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have owned a company but it’s based upon you having W-2 employees 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 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 correct so there were six quarters the program was open well walk us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you return per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus because the mayhem of the pandemic so they wished 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 up to 5 thousand Max and after that what happens 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 staff member that is since that’s a lot of cash it is now there’s a caveat here the PPP money would have to be reduced 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 usually Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s state 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 money you would still get a million dollar in the mail from the internal revenue service so it’s big obviously now the big question is why does no one learn about this since look when I initially heard about this when I initially met Josh you know I have actually got great deals of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of numerous financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I do not believe it because 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 should have and we utilized them sensibly to stay alive throughout the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even contacted us to my political leader friends Governor Senators they didn’t know about it I suggest 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 also not real so let’s ask Josh why does no one understand about the employee retention credit you know what’s intriguing you’re speaking about the banks Kevin because in the PPP loan procedure 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 huge 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 procedure that’s all um and here there was turmoil since keep in mind in the initial cares act you could refrain from doing both programs so if you had done PPP you could not do ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not actually she or he’s never ever done it in the past do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll company your accountant no your accountant’s never done this before unless you have an account that went into this company and bottom line my company Kevin has stayed in business because 2009 and we’ve been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our big huge business customers have worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
employer whose company is completely or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Schedule.
1. The credit is available to all employers no matter size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. Once the.
employer’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of certifying earnings varies by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing assistance generally offer expertise and support to help organizations browse the complicated process of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Instagram
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based upon aspects such as your market, income, and operations. They can assist determine if you meet the requirements for the credit and determine the optimum credit amount you can claim.
Documents and Calculation: ERC filing services will help in collecting the needed documentation, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit amount based on eligible earnings and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can examine your past payroll records and financials to determine possible chances for retroactive credits. They can assist you amend previous income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the needed kinds and documentation on your behalf. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed gradually. These companies stay updated with the latest modifications and guarantee that your filings adhere to the most existing standards. If the Internal revenue service requests additional details or performs an audit associated to your ERC claim, they can also offer ongoing support.
It is very important to research and vet any business offering ERC filing help to guarantee their reliability and know-how. Search 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 filing support.
Remember that while these companies can supply important assistance, it’s constantly a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and ensure 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 procedures. The objective of the ERC is to encourage services to keep and pay their workers during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, companies need to satisfy one of two requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined 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 immediately preceding quarter.
Credit Amount: 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 salaries paid to workers, consisting of specific health insurance costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. Nevertheless, the exact same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, allowing eligible companies to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision offers an opportunity for organizations to change prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment income tax return, usually Type 941. The excess can be reimbursed to the company if the credit surpasses the quantity of work taxes owed.
It is necessary to note that the ERC provisions and eligibility requirements have actually evolved in time. The very best strategy is to talk to a tax professional or visit the main IRS website for the most in-depth and updated details concerning the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, a business should fulfill one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. For 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For example, federal government entities and businesses that received a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC involves completing the needed kinds and consisting of the credit on your work income tax return (typically Type 941). The exact time it takes to process the credit can vary based upon a number of elements, including the complexity of your business and the work of the internal revenue service. It’s recommended to talk to a tax expert for guidance specific to your circumstance.
There are numerous business that can help with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some widely known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business directly to ask about their charges and services.
Please keep in mind that the information supplied here is based upon general understanding and may not show the most recent updates or changes to the ERC. It’s important to seek advice from a tax expert or visit the official internal revenue service website for the most updated and accurate details concerning eligibility, declaring procedures, and available help.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on salaries paid to all workers whether they actually worked or not. In other words, even if the.
employees worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
allowed only for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” includes not just cash payments however also a portion of the expense of company.
supplied healthcare. Innovation Refunds Instagram
Payment.
Companies can be immediately reimbursed for the credit by decreasing the amount of payroll taxes they.