Lets talk first about Innovation Refunds Jobs :
Our group here what do these guys doing everybody in this space is assisting teach people about ERC and uh always offer a stunning breakfast and have people truly discover the program we ought to head to the space where we are able 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 millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I suggest you know if you just start to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I indicate think of how many actual clients 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 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 know when you
receive this you know the check is opted for sure which’s when they pay so they don’t pay anything until they really receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their savings account and they can truly trust Wonder trust that the process has been completed and the number of you believe you have actually processed considering that 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 and that’s what you need you require professionals 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 discussing something truly important today the staff member retention credit which most of you have never ever heard of I certainly had not heard of it until really just recently and found out a lot about it due to the fact that this is most likely the lowest cost of capital for any small company anywhere
anytime if you have workers between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just contact your bank supervisor and say 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s going away very soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund alright go on sorry I simply have to ensure we got that point I mean that’s a big distinction a loan versus money cash I like cash cash that’s what we’re discussing all right 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 beautiful tough check in the mail where you get real cash from the IRS all right so let’s discuss how it works since it sounds 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 Presumption this money 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 service but 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 need to be on payroll for the very first six months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my preferred part cash just how much can you get back per worker 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 a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus since 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 five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of cash it is now there’s a caution here the PPP cash 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 on average Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say 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 IRS so it’s substantial clearly now the huge question is why does no one learn about this due to the fact that appearance when I first heard about this when I first met Josh you understand I’ve got great deals of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make lots of many financial investments in business owners of which many suffered through the pandemic when I first heard about this I called BS I do not think it because I utilize the PPP we went through the money 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 utilized them carefully to survive during the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even called to my politician friends Governor Senators they didn’t learn about it I imply that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of individuals informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody know about the worker 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 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 nation and they would process process 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 remember in the initial cares act you might refrain from doing both programs so if you had actually 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 because 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 know how to do this not actually she or he’s never done it previously 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 prior to unless you have an account that entered into this service and bottom line my firm Kevin has actually stayed in business since 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 lot of our big huge business customers have dealt with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
company whose company is completely or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is available to all companies no matter size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. Once the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries differs by whether a company had, usually, more or less than.
100 staff members in 2019.
Companies that focus on ERC filing support generally provide competence and assistance to help organizations browse the complicated procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Jobs
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon elements such as your market, income, and operations. They can help determine if you satisfy the requirements for the credit and identify the optimum credit amount you can claim.
Documents 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 determine the credit quantity based on eligible salaries and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can review your previous payroll records and financials to identify prospective opportunities for retroactive credits. They can help you modify previous income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the necessary types and documents in your place. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have progressed with time. These companies remain upgraded with the latest modifications and guarantee that your filings adhere to the most existing guidelines. They can likewise offer ongoing assistance if the IRS demands extra information or performs an audit related to your ERC claim.
It is necessary to research and vet any company providing ERC filing support to ensure their trustworthiness and proficiency. Search for established companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax specialists who provide ERC filing support.
Remember that while these business can provide valuable help, it’s always a good idea to have a standard understanding of the ERC requirements and process yourself. This will help you make notified choices and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate organizations to retain and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit companies, tax-exempt companies, and particular governmental entities. To certify, companies should meet one of two requirements:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As mentioned previously, for 2021, a significant 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% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly 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 percentage (approximately 70%) of certified wages paid to workers, including certain health insurance expenses. 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, organizations that received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. However, the same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, permitting eligible companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment tax returns, generally Type 941. If the credit exceeds the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It is essential to note that the ERC arrangements and eligibility requirements have evolved with time. The very best strategy is to seek advice from a tax professional or check out the main internal revenue service website for the most comprehensive and current information regarding the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, an organization must meet among the following criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
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 exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined 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 instantly preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and companies that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes finishing the essential types and consisting of the credit on your employment income tax return (usually Type 941). The exact time it takes to process the credit can differ based on a number of elements, including the intricacy of your service and the workload of the IRS. It’s suggested to speak with a tax professional for assistance particular to your scenario.
There are a number of business that can aid with the procedure of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll company. 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 get in touch with these companies directly to ask about their services and charges.
Please note that the information provided here is based upon general knowledge and might not reflect the most current updates or changes to the ERC. It’s important to talk to a tax expert or visit the main internal revenue service website for the most current and precise information regarding eligibility, declaring treatments, and readily available support.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on incomes paid to all employees whether they really worked or not. In other words, even if the.
staff members worked full time and made money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
permitted just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments however likewise a portion of the cost of employer.
provided health care. Innovation Refunds Jobs
Employers can be immediately compensated for the credit by reducing the amount of payroll taxes they.