Lets talk first about Kansas Employee Retention Credit :
Our group here what do these men doing everybody in this room is assisting teach individuals about ERC and uh constantly supply a beautiful breakfast and have individuals truly discover the program we ought to head to the room where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I indicate you know if you just begin to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest consider 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 validated 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 have the ability to track it you understand when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything until they really receive the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their bank account and they can genuinely rely on Wonder trust that the process has actually been ended up and how many you believe you’ve processed since you started 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 require you require 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 Terrific here you’re at my YouTube channel we’re speaking about something really important today the worker retention credit which the majority of you have actually never heard of I certainly hadn’t heard of it until very recently and found out a lot about it because this is most likely the lowest cost of capital for any small company anywhere
anytime if you have workers between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply 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 us all about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to learn everything about it let’s talk worker 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 offered businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone 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 alright go on sorry I simply need to make sure we got that point I imply that’s a huge difference a loan versus cash 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 money from the internal revenue service all right so let’s speak about how it works since it sounds 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 Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have owned an organization however it’s based upon you having W-2 staff members 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 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 appropriate so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one two and three of 2021. all right 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 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 income to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s income to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the mayhem 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 5 thousand Max and then what happens 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP cash would need to be lowered 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 somewhere around ten thousand dollars a person 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 money you would still get a million dollar in the mail from the IRS so it’s huge obviously now the big concern is why does no one know about this because appearance when I initially found out about this when I first satisfied Josh you know I’ve got great deals of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make lots of lots of investments in business owners of which lots of suffered through the pandemic when I first became aware of this I called BS I do not think it since I use the PPP we went through the cash 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 should have and we used them wisely to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my political leader pals Governor Senators they didn’t understand 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 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 no one know about the staff member retention credit you understand what’s interesting you’re speaking about the banks Kevin because 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 just procedure procedure that’s all um and here there was mayhem due to the fact that remember in the original cares act you might refrain from doing 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 since it’s not alone so you’re getting a tax refund so the government never 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 before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this prior to unless you have an account that entered into this service and bottom line my company Kevin has stayed in business since 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, company whose service is completely or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies despite size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is totally or partly suspended by federal 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.
employer’s gross receipts go above 80% of a similar 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 certifying earnings paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages differs by whether an employer had, usually, basically than.
100 workers in 2019.
Business that focus on ERC filing support generally supply know-how and support to help services browse the intricate procedure of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Kansas Employee Retention Credit
Eligibility Assessment: These business will examine your service’s eligibility for the ERC based upon elements such as your market, revenue, and operations. They can help figure out if you satisfy the requirements for the credit and identify the maximum credit amount you can declare.
Documentation and Computation: ERC filing services will assist in collecting the essential documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist determine the credit amount based on eligible salaries and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can review your past payroll records and financials to identify potential opportunities for retroactive credits. They can assist you modify previous tax returns to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the needed kinds and documents in your place. This consists of finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have evolved gradually. These business stay upgraded with the latest modifications and guarantee that your filings comply with the most current guidelines. If the Internal revenue service requests additional info or conducts an audit related to your ERC claim, they can also offer ongoing support.
It is very important to research study and vet any business offering ERC filing assistance to ensure their credibility and expertise. Try to find established firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax professionals who provide ERC filing support.
Keep in mind that while these companies can offer valuable help, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to motivate companies to retain and pay their workers throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit businesses, tax-exempt organizations, and certain governmental entities. To qualify, employers should fulfill one of two requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As discussed earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts 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 percentage (approximately 70%) of qualified incomes paid to employees, including certain health insurance 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, companies that received an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. However, the exact same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing qualified employers to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, usually Kind 941. The excess can be reimbursed to the company if the credit goes beyond the quantity of work taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have developed in time. The very best course of action is to consult with a tax professional or check out the main internal revenue service website for the most comprehensive and current info concerning the ERC, including any current legal modifications or updates.
To qualify for the ERC, an organization must fulfill among the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and organizations that received a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC includes finishing the necessary forms and consisting of the credit on your work tax return (usually Type 941). The exact time it takes to process the credit can vary based on numerous aspects, including the complexity of your company and the work of the internal revenue service. It’s suggested to seek advice from a tax expert for guidance specific to your scenario.
There are a number of companies that can assist with the process of declaring the ERC. Some widely known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info supplied here is based upon general knowledge and may not reflect the most recent updates or changes to the ERC. It is necessary to consult with a tax expert or go to the official IRS site for the most current and accurate info relating to eligibility, claiming treatments, and readily available assistance.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on earnings paid to all staff members whether they really worked or not. To put it simply, even if the.
workers worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
enabled just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply money payments however likewise a part of the expense of company.
supplied healthcare. Kansas Employee Retention Credit
Employers can be right away repaid for the credit by lowering the quantity of payroll taxes they.