Lets talk first about Intuit Employee Retention Credit :
Our team here what do these men doing everybody in this room is assisting teach people about ERC and uh constantly supply a gorgeous breakfast and have people truly learn about the program we should head to the room 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 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 method I suggest you understand if you simply start 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 imply it’s simply I suggest consider how many real 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 customer so that’s how you have the ability to track it you know when you
get this you know the check is chosen sure which’s when they pay so they do not pay anything till they in fact receive the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their bank account and they can genuinely trust Wonder trust that the procedure has actually been completed and the number of you believe you have actually processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly 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 speaking about something truly crucial today the staff member retention credit which most of you have never ever heard of I certainly had not become aware of it until extremely just recently and discovered a lot about it since this is probably the most affordable cost 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 founder and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply call up your bank manager and say offer me a loan it does not work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away very soon you got to learn everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided organizations 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 huge difference right there two 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 okay go on sorry I just have to make certain we got that point I imply that’s a big distinction a loan versus money money I like cash cash that’s what we’re discussing okay 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 tough check in the mail where you get actual money from the IRS all right so let’s talk about how it works due to the fact that it seems 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 workers right you had to have actually owned a company but it’s based upon you having W-2 workers 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 six months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you have 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 worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the employee’s salary 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 worker’s wage to an optimum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus since 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 approximately five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caveat here the PPP cash would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment in New York 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 undoubtedly now the big concern is why does no one learn about this since appearance when I initially found out about this when I first met Josh you understand I’ve got lots of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many many investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t believe it since I use 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 and that were well been worthy of and we utilized them wisely to survive during the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician pals Guv Senators they didn’t know about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of individuals told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one learn about the employee retention credit you know what’s intriguing you’re discussing the banks Kevin since 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was turmoil because remember in the initial cares act you could not do both programs so if you had done PPP you could not do ERC in the original program and when they altered 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 federal government never ever made it clear to any person about how to.
do this does your CFO know how to do this not really he or she’s never done it previously do the banks do it nope the banks don’t do it the payroll business 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 company Kevin has stayed in business considering that 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big corporate customers have actually dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Since of COVID-19 or whose gross invoices, company whose company is totally or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether a company had, typically, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing support generally offer expertise and support to assist companies browse the complex process of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Intuit Employee Retention Credit
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. They can assist identify if you meet the requirements for the credit and determine the optimum credit amount you can claim.
Documentation and Estimation: ERC filing services will help in gathering the required paperwork, such as payroll records and monetary statements, to support your claim. They will likewise assist calculate the credit amount based upon qualified earnings and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to identify potential opportunities for retroactive credits. They can assist you modify prior income tax return to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the necessary forms and paperwork in your place. This includes completing Type 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have developed gradually. These business remain updated with the current modifications and make sure that your filings comply with the most present standards. They can also supply continuous support if the internal revenue service requests additional info or carries out an audit related to your ERC claim.
It’s important to research study and veterinarian any business providing ERC filing assistance to guarantee their reliability and know-how. Search for established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who offer ERC filing support.
Keep in mind that while these business can provide important support, it’s constantly a good concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified choices and ensure accurate filings.
The Employee 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 companies to keep and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit services, tax-exempt companies, and particular governmental entities. To qualify, employers must satisfy one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross invoices. As pointed out earlier, for 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of qualified incomes paid to workers, consisting of particular health insurance expenses. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. The very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, permitting eligible employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies a chance for companies to amend prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, usually Type 941. If the credit exceeds the quantity of work taxes owed, the excess can be reimbursed to the company.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually progressed over time. The best strategy is to speak with a tax professional or visit the main IRS site for the most comprehensive and up-to-date details relating to the ERC, including any current legislative modifications or updates.
To qualify for the ERC, a company should satisfy one of the following criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and businesses that got a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC includes completing the required kinds and consisting of the credit on your work income tax return (normally Form 941). The exact time it takes to process the credit can vary based upon a number of factors, including the complexity of your service and the workload of the IRS. It’s advised to seek advice from a tax expert for assistance particular to your circumstance.
There are several business that can assist with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some widely known companies that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these business straight to inquire about their fees and services.
Please keep in mind that the info provided here is based on general understanding and might not reflect the most recent updates or modifications to the ERC. It is very important to talk to a tax professional or visit the main IRS site for the most accurate and current details relating to eligibility, claiming procedures, and offered support.
Less than 100. If the employer had 100 or fewer workers typically in 2019, then the credit is based.
on incomes paid to all employees whether they actually worked or not. In other words, even if the.
staff members worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for wages paid to workers who did not work during the calendar quarter.
In both cases, “incomes” includes not just cash payments but likewise a portion of the cost of employer.
supplied healthcare. Intuit Employee Retention Credit
Companies can be instantly reimbursed for the credit by decreasing the amount of payroll taxes they.