Lets talk first about Innovation Refunds Scam :
Our group here what do these men doing everyone in this space is helping teach individuals about ERC and uh always provide a stunning breakfast and have individuals actually find out about the program we must head to the space where we have the ability to display a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the method I imply you know if you simply begin 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 indicate it’s just I indicate think of the number of actual customers 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 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 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 up until this letter is validated the check is on the method they deposit it into their checking account and they can really trust Wonder trust that the procedure has been ended up and how many you believe you’ve processed because you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they know 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 among these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re speaking about something actually essential today the staff member retention credit which the majority of you have never become aware of I certainly hadn’t become aware of it till really recently and discovered a lot about it because this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees 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 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 contact your bank supervisor and say offer 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 become yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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.
remedy the cash cash payroll tax refund fine go on sorry I just have to make certain we got that point I indicate that’s a big distinction a loan versus money money I like money money that’s what we’re discussing 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 cash from the internal revenue service all right so let’s speak about how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that person needed to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have actually owned an organization but it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 employees 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 very first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and 3 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 favorite part money how much can you return per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s salary to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that happen um they simply altered the rules in.
2021 versus because the turmoil of the pandemic so they wanted 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 as much as five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five 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 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 money someplace around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant 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 internal revenue service so it’s huge certainly now the big concern is why does nobody understand about this due to the fact that appearance when I first heard about this when I first satisfied 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 many many investments in entrepreneurs of which lots of suffered through the pandemic when I first found out about this I called BS I do not think it due to the fact that I use the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans and that were well should have and we used them carefully to survive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even contacted us to my political leader friends Guv Senators they didn’t learn 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 individuals told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does nobody learn about the worker retention credit you understand what’s fascinating 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 nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure 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 might refrain from doing ERC in the original program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not really 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 companies yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this before unless you have an account that entered into this company and bottom line my firm Kevin has been in business given that 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big big business clients have dealt with bottom line to recover other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, company whose organization is fully or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is completely or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as 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 certifying earnings paid up to $10,000 in overall.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying earnings varies by whether an employer had, on average, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing support generally supply competence and assistance to help businesses browse the complex procedure of declaring the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Scam
Eligibility Assessment: These business will examine your organization’s eligibility for the ERC based on aspects such as your industry, profits, and operations. If you fulfill the requirements for the credit and identify the optimum credit amount you can declare, they can assist figure out.
Paperwork and Estimation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will also help calculate the credit amount based upon qualified incomes and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to determine possible chances for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the essential types and documents on your behalf. This consists of finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have evolved over time. These business stay upgraded with the latest modifications and make sure that your filings adhere to the most current guidelines. They can likewise provide ongoing support if the internal revenue service requests additional details or carries out an audit related to your ERC claim.
It’s important to research and vet any company using ERC filing help to guarantee their credibility and proficiency. Try to find recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who use ERC filing support.
Keep in mind that while these business can supply important support, it’s constantly a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage companies to maintain and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, employers should fulfill one of two criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. As mentioned previously, for 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away 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 (as much as 70%) of certified earnings paid to staff members, including specific health plan costs. 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 Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they received a PPP loan. The very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, permitting eligible employers to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to change prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, usually Type 941. If the credit surpasses the quantity of work taxes owed, the excess can be refunded to the company.
It is essential to note that the ERC arrangements and eligibility criteria have developed in time. The very best strategy is to seek advice from a tax professional or visit the official internal revenue service site for the most updated and detailed details concerning the ERC, consisting of any recent legal modifications or updates.
To qualify for the ERC, a company needs to fulfill one of the following requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts 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 businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and organizations that got a PPP loan might have constraints on declaring the credit.
The process for claiming the ERC involves completing the essential types and including the credit on your work tax return (usually Form 941). The exact time it takes to process the credit can vary based upon several elements, consisting of the intricacy of your service and the workload of the internal revenue service. It’s suggested to seek advice from a tax professional for guidance particular to your circumstance.
There are a number of business that can assist with the procedure of declaring the ERC. Some popular companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info provided here is based on basic understanding and might not show the most current updates or changes to the ERC. It’s important to speak with a tax expert or check out the official IRS website for the most accurate and updated details concerning eligibility, declaring procedures, and offered help.
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 in fact 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 employees usually in 2019, then the credit is.
enabled only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but also a portion of the expense of employer.
offered health care. Innovation Refunds Scam
Employers can be instantly compensated for the credit by reducing the quantity of payroll taxes they.