Lets talk first about Irs Employee Retention Credit Status :
Our team here what do these people doing everybody in this room is assisting teach individuals about ERC and uh constantly offer a gorgeous breakfast and have people really learn more about the program we should head to the space where we are able to show some of the checks that we are getting for companies and I want 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 confirming that the check is on the method I suggest you understand if you simply begin 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 imply it’s simply I suggest consider the number of real customers that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are validated 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 understand when you
receive this you know the check is gone for sure which’s when they pay so they do not pay anything until they actually receive the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they deposit it into their checking account and they can really rely on Wonder trust that the process has been completed and the number of you think you have actually processed because 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 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 Fantastic here you’re at my YouTube channel we’re talking about something really essential today the worker retention credit which the majority of you have actually never become aware of I certainly had not become aware of it till extremely just recently and learned a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees 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 Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just phone your bank supervisor and state 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’ve become yes the Ambassador and paid representative 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 during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used businesses 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 difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund all right go on sorry I simply need to make certain we got that point I suggest that’s a big difference a loan versus money money I like money money that’s what we’re talking about 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 cash from the IRS all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual needed to be a staff member 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 a service however it’s based on you having W-2 workers 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 6 months of 2021 on the W-2 right so there were six quarters the program was open well walk us through the 6 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 have to be on the W-2 throughout that period now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the chaos of the pandemic so they wished to even get more to keep those staff members 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 after that what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 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 reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 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 IRS so it’s big undoubtedly now the huge question is why does no one understand about this since appearance when I first became aware of this when I first fulfilled Josh you understand I have actually got great deals of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I first became aware of this I called BS I do not believe it since I use 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 and that were well deserved and we utilized them wisely to stay alive during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t understand about it I indicate that’s how you know that’s how misinformation is that there’s no details out there then a lot of people informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody learn about the worker retention credit you know what’s intriguing you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it really 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 simply procedure process that’s all um and here there was turmoil since keep in mind in the initial cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they altered 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 federal 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 done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant 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 stayed in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big huge business customers have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, company whose business is fully or partially suspended.
decline by more than 50%.
1. The credit is available to all companies despite size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The definition of qualifying salaries differs by whether a company had, typically, basically than.
100 employees in 2019.
Companies that concentrate on ERC filing support usually supply proficiency and support to help services navigate the intricate process of claiming the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Irs Employee Retention Credit Status
Eligibility Assessment: These companies will examine your organization’s eligibility for the ERC based upon aspects such as your market, income, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can claim, they can assist identify.
Documents and Computation: ERC filing services will help in collecting the required paperwork, such as payroll records and financial statements, to support your claim. They will also help determine the credit quantity based upon eligible earnings and other certifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can evaluate your past payroll records and financials to recognize possible opportunities for retroactive credits. They can help you amend previous tax returns to declare these refunds.
Filing Help: Business concentrating on ERC filings will prepare and submit the necessary kinds and documentation on your behalf. This consists of finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have progressed with time. These business stay upgraded with the latest changes and ensure that your filings comply with the most present guidelines. If the Internal revenue service demands additional info or carries out an audit related to your ERC claim, they can likewise offer ongoing support.
It is essential to research study and veterinarian any business offering ERC filing support to guarantee their trustworthiness and expertise. Try to find established firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who provide ERC submitting support.
Bear in mind that while these companies can supply important help, it’s constantly a good idea to have a standard understanding of the ERC requirements and process yourself. This will help you make notified choices and guarantee accurate filings.
The Employee 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 workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To certify, companies need to fulfill one of two requirements:.
The business operations were fully or partly 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 decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline 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 quantity is equal to a percentage (approximately 70%) of certified earnings paid to staff members, including specific health insurance expenditures. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. The same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, allowing qualified companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision offers an opportunity for services to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Kind 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the company.
It is necessary to keep in mind that the ERC arrangements and eligibility criteria have actually progressed with time. The best strategy is to consult with a tax professional or visit the main IRS website for the most current and in-depth details relating to the ERC, consisting of any recent legislative changes or updates.
To receive the ERC, a company needs to meet among the following requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and services that received a PPP loan may have limitations on declaring the credit.
The process for declaring the ERC involves completing the required kinds and including the credit on your employment income tax return (generally Kind 941). The exact time it requires to process the credit can vary based on a number of factors, including the intricacy of your business and the workload of the internal revenue service. It’s suggested to seek advice from a tax expert for guidance specific to your circumstance.
There are numerous companies that can help with the process of declaring the ERC. Some widely known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details offered here is based upon general knowledge and may not show the most current updates or changes to the ERC. It is essential to consult with a tax professional or go to the main internal revenue service website for the most accurate and current info concerning eligibility, claiming procedures, and readily available support.
Less than 100. If the employer had 100 or less staff members usually in 2019, then the credit is based.
on incomes paid to all employees whether they actually worked or not. To put it simply, even if the.
employees worked full-time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
allowed just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” includes not simply cash payments however also a portion of the cost of employer.
supplied health care. Irs Employee Retention Credit Status
Companies can be immediately compensated for the credit by lowering the amount of payroll taxes they.