Lets talk first about Is Innovation Refunds A Legit Company :
Our team here what do these people doing everybody in this space is helping teach people about ERC and uh always provide a stunning breakfast and have people truly learn about the program we must head to the space where we are able to display some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I imply you understand if you just start to take a 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 suggest it’s just I imply think of the number of actual 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 confirmed and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you understand 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 do not pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their checking account and they can truly rely on Wonder trust that the procedure has been finished and the number of you think you have actually processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you need you need professionals 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 speaking about something truly essential today the employee retention credit which the majority of you have never become aware of I certainly hadn’t heard of it up until extremely recently and discovered a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 manager and state provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I like this program it’s going away soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund fine go on sorry I simply have to make certain we got that point I suggest that’s a huge difference a loan versus money money I like cash cash that’s what we’re speaking about 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 original cares Act is the ERC and yes Kevin it is a beautiful hard check in the mail where you get actual cash from the internal revenue service all right so let’s discuss how it works since it seems like to me if it’s a if it’s employee retention credit that person had to be a staff member so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned a service but it’s based upon 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 eligible 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 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my preferred part cash just how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the turmoil 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 approximately five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty six 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 great deal 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 lower the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the huge concern is why does nobody learn about this because look when I first became aware of this when I initially fulfilled Josh you know I have actually got lots of investments in lots of business I’m a significant advocate for entrepreneurship in America and make lots of 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 don’t think it because I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them wisely to stay alive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my politician pals 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 information out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one understand about the worker retention credit you understand what’s fascinating you’re discussing the banks Kevin due to the fact that 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 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 just procedure procedure that’s all um and here there was mayhem since remember in the original cares act you might not do both programs so if you had done PPP you could not do ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO understand how to do this not truly she or he’s never done it in the past do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never done this prior to unless you have an account that entered into this company and bottom line my firm 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 corporate customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose organization is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Schedule.
1. The credit is readily available to all employers no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service 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 below 50% of the similar quarter in 2019. When the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying wages varies by whether a company had, typically, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing support typically offer know-how and support to assist companies browse the complicated procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Is Innovation Refunds A Legit Company
Eligibility Assessment: These business will examine your organization’s eligibility for the ERC based on aspects such as your market, revenue, and operations. They can help determine if you satisfy the requirements for the credit and determine the optimum credit quantity you can claim.
Documentation and Estimation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and monetary statements, to support your claim. They will likewise assist determine the credit amount based upon eligible incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can examine your past payroll records and financials to identify prospective opportunities for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the necessary types and paperwork on your behalf. This consists of finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have progressed in time. These companies stay updated with the latest modifications and guarantee that your filings abide by the most existing standards. If the IRS requests extra details or performs an audit associated to your ERC claim, they can likewise provide continuous support.
It’s important to research and vet any business providing ERC filing assistance to ensure their reliability and expertise. Search for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who use ERC submitting support.
Remember that while these companies can offer valuable assistance, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate services to retain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit services, tax-exempt companies, and certain governmental entities. To qualify, employers should satisfy one of two criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As discussed earlier, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices 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 amount is equal to a portion (up to 70%) of qualified wages paid to staff members, including certain 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, organizations that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and enhanced, enabling eligible companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for businesses to change prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Type 941. The excess can be refunded to the employer if the credit surpasses the amount of work taxes owed.
It is very important to keep in mind that the ERC provisions 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 up-to-date and comprehensive info regarding the ERC, including any current legal changes or updates.
To get approved for the ERC, a service needs to meet among the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, federal government entities and services that got a PPP loan may have constraints on declaring the credit.
The procedure for declaring the ERC includes finishing the needed forms and consisting of the credit on your work tax return (generally Form 941). The exact time it takes to process the credit can vary based on a number of elements, consisting of the intricacy of your company and the work of the internal revenue service. It’s advised to consult with a tax expert for assistance particular to your situation.
There are numerous companies that can help with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some popular companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and get in touch with these business straight to inquire about their services and charges.
Please note that the details provided here is based on basic understanding and may not show the most current updates or changes to the ERC. It is essential to consult with a tax expert or go to the official internal revenue service website for the most updated and accurate details concerning eligibility, declaring treatments, and available support.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on salaries paid to all employees whether they in fact 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. If the employer had more than 100 staff members on average in 2019, then the credit is.
enabled only for earnings paid to employees who did not work during the calendar quarter.
In both cases, “incomes” includes not just cash payments but also a part of the expense of employer.
offered healthcare. Is Innovation Refunds A Legit Company
Payment.
Employers can be instantly compensated for the credit by minimizing the amount of payroll taxes they.