Lets talk first about Is The Employee Retention Credit A Scam :
Our team here what do these people doing everyone in this space is helping teach people about ERC and uh always offer a lovely breakfast and have people truly learn about the program we need to head to the space where we have the ability to show a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the method I suggest you understand if you simply begin to take a look at a few 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 think of how many actual clients that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are verified and the check is on the mail in the mail from the IRS heading to the consumer 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 in fact get the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their savings account and they can really trust Wonder trust that the process has actually been completed and how many you believe you’ve processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you require you need specialists 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 actually never ever become aware of I definitely had not become aware of it up until very recently and found out a lot about it due to the fact that this is probably the lowest cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply contact your bank supervisor and state provide 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 have actually ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund okay go on sorry I simply have to make sure we got that point I mean that’s a big distinction a loan versus cash cash I like money cash that’s what we’re talking 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 initial cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get real cash from the internal revenue service all right so let’s discuss 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 had to be a staff member so I’m going to make the Assumption 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 owned a business however it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 staff members 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 6 months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and three of 2021. all right 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 how much can you get back per worker that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus because the chaos of the pandemic so they wished 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 up to five thousand Max and after that what takes place 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 6 thousand dollars per employee that is since that’s a lot of money it is now there’s a caveat here the PPP money would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees 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 big concern is why does nobody learn about this due to the fact that appearance when I first became aware of this when I first met Josh you know I have actually got great deals of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t think it due to the fact that 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 utilized them sensibly to stay alive 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 political leader friends Guv Senators they didn’t understand about it I suggest that’s how you understand that’s how misinformation is that there’s no information out there then a lot of individuals informed me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one understand about the employee retention credit you know what’s intriguing you’re speaking about 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 process 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 since keep in mind in the initial cares act you might not do 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 federal government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really 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 accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has been in business since 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have dealt with bottom line to recuperate other federal 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 developed to motivate.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
company whose company is fully or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all companies no matter size including tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is completely 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 equivalent quarter in 2019. When the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries varies by whether an employer had, typically, more or less than.
100 employees in 2019.
Companies that concentrate on ERC filing support generally supply knowledge and support to help services navigate the intricate process of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Is The Employee Retention Credit A Scam
Eligibility Evaluation: These business will examine your service’s eligibility for the ERC based on elements such as your industry, income, and operations. They can assist identify if you fulfill the requirements for the credit and identify the optimum credit quantity you can declare.
Documents and Computation: ERC filing services will assist in gathering the required paperwork, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit quantity based upon eligible salaries and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can examine your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you modify prior income tax return to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the needed forms and paperwork in your place. This consists of finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have developed in time. These companies remain upgraded with the current modifications and make sure that your filings comply with the most existing standards. They can likewise provide continuous assistance if the internal revenue service requests additional info or performs an audit related to your ERC claim.
It is essential to research and veterinarian any company using ERC filing support to ensure their reliability and knowledge. Try to find recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax professionals who offer ERC filing assistance.
Keep in mind that while these business can offer valuable help, it’s always an excellent idea to have a standard understanding of the ERC requirements and procedure 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 companies to keep and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit businesses, tax-exempt organizations, and particular governmental entities. To certify, companies must fulfill one of two criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease 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 Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of certified incomes paid to workers, including certain health plan expenditures. 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 got an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they got a PPP loan. The very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, enabling eligible employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers an opportunity for organizations to modify prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, generally Type 941. If the credit surpasses the amount of work taxes owed, the excess can be refunded to the employer.
It is very important to note that the ERC arrangements and eligibility requirements have actually developed in time. The best course of action is to seek advice from a tax professional or visit the official IRS website for the most up-to-date and in-depth info relating to the ERC, consisting of any current legislative changes or updates.
To receive the ERC, a business needs to satisfy one of the following requirements:.
The 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. For 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices 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 services of all sizes, including tax-exempt organizations, however there are some exceptions. For example, federal government entities and businesses that received a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC includes finishing the necessary types and including the credit on your work tax return (typically Kind 941). The exact time it requires to process the credit can differ based on several aspects, consisting of the complexity of your organization and the workload of the IRS. It’s recommended to speak with a tax expert for guidance particular to your scenario.
There are several companies that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some popular companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these business directly to ask about their charges and services.
Please keep in mind that the info offered here is based upon basic understanding and might not reflect the most recent updates or changes to the ERC. It is very important to speak with a tax professional or go to the official internal revenue service website for the most updated and precise info relating to eligibility, claiming procedures, and offered help.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on wages paid to all staff members whether they in fact worked or not. In other words, even if the.
workers worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
allowed only for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just cash payments however also a part of the expense of company.
provided health care. Is The Employee Retention Credit A Scam
Employers can be instantly repaid for the credit by lowering the quantity of payroll taxes they.