Lets talk first about Kentucky Employee Retention Credit Subtraction :
Our team here what do these people doing everybody in this space is assisting teach individuals about ERC and uh constantly supply a stunning breakfast and have people truly learn about the program we ought to head to the space where we have the ability 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 literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I imply you understand if you just begin to 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 mean it’s just I indicate 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 validated the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you know when you
get this you understand the check is opted for sure and that’s when they pay so they don’t pay anything till they in fact get the money they don’t pay bottom line Wonder trust anything till this letter is validated the check is on the method they transfer it into their checking account and they can genuinely trust Wonder trust that the process has actually been ended up and the number of you believe you have actually processed since you started this we’re about 35 000 of these for
about six billion dollars wow so plainly 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 Fantastic here you’re at my YouTube channel we’re discussing something really crucial today the staff member retention credit which most of you have actually never ever heard of I certainly had not become aware of it until extremely recently and discovered a lot about it because this is probably the most affordable cost of capital for any small business anywhere
anytime if you have workers between five and five hundred so I have actually got the expert 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 simply contact your bank manager and say provide me a loan it does not 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’ve become yes the Ambassador and paid representative for this I love this program it’s going away soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used organizations three chances 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money money payroll tax refund fine go on sorry I just have to make certain we got that point I mean that’s a huge distinction a loan versus money money I like cash cash that’s what we’re discussing alright 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 gorgeous difficult check in the mail where you get actual money from the internal revenue service 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 employee retention credit that individual needed to be an employee 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 had to have owned a business however 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 first 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part money 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 specific Kevin is 50 of the employee’s salary to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus due to the fact that the mayhem 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 as much as five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop 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 because that’s a lot of cash it is now there’s a caution here the PPP money would have to be minimized 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 typically Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state 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 huge certainly now the big concern is why does nobody learn about this since look when I initially found out about this when I initially satisfied Josh you understand I have actually got great deals of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make many numerous investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I do not think it since I utilize the PPP we went through the cash 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 should have and we utilized them carefully to survive during the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even contacted us to my politician friends Governor 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 lot of individuals told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one learn about the staff member retention credit you know what’s interesting you’re talking about the banks Kevin since in the PPP loan process the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 just process process 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 might refrain from doing 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 federal government never made it clear to anyone about how to.
do this does your CFO know how to do this not truly he or she’s never done it in the past 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 business your accountant no your accountant’s never done this before unless you have an account that entered into this company and bottom line my firm Kevin has actually been in business since 2009 and we’ve been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have actually worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, employer whose company is completely or partly suspended.
decline by more than 50%.
Schedule.
1. The credit is readily available to all employers despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation 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 incomes paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings varies by whether a company had, on average, more or less than.
100 workers in 2019.
Business that focus on ERC filing assistance generally supply competence and assistance to help services browse the complex procedure of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Kentucky Employee Retention Credit Subtraction
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based on elements such as your industry, profits, and operations. If you satisfy the requirements for the credit and identify the maximum credit quantity you can declare, they can help identify.
Documentation and Computation: ERC filing services will help in collecting the required paperwork, such as payroll records and financial declarations, to support your claim. They will likewise assist calculate the credit quantity based on eligible incomes and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can examine your past payroll records and financials to determine possible opportunities for retroactive credits. They can help you amend prior income tax return to declare these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the essential forms and paperwork in your place. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have actually evolved with time. These business remain upgraded with the most recent changes and make sure that your filings abide by the most existing guidelines. If the Internal revenue service requests additional information or carries out an audit associated to your ERC claim, they can likewise provide ongoing assistance.
It is very important to research study and veterinarian any company providing ERC filing assistance to ensure their reliability and proficiency. Try to find established companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax professionals who use ERC filing assistance.
Keep in mind that while these business can offer important help, it’s always a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make informed choices and ensure accurate filings.
The Worker 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 services to maintain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, companies must satisfy one of two requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As discussed previously, for 2021, a significant decrease 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 very same quarter in 2019, or a 20% decline in gross receipts 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 quantity amounts to a percentage (up to 70%) of qualified incomes paid to employees, including certain health plan expenditures. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received an Income Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they got a PPP loan. However, the very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, allowing qualified employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to modify prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, usually Kind 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the company.
It is essential to note that the ERC provisions and eligibility requirements have developed over time. The very best course of action is to seek advice from a tax professional or check out the official IRS website for the most updated and detailed info regarding the ERC, including any current legal changes or updates.
To qualify for the ERC, an organization needs to satisfy one of the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is available to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and organizations that got a PPP loan may have limitations on claiming the credit.
The process for declaring the ERC involves completing the necessary types and including the credit on your employment tax return (generally Kind 941). The exact time it takes to process the credit can differ based upon several elements, consisting of the intricacy of your service and the work of the internal revenue service. It’s suggested to seek advice from a tax expert for assistance specific to your situation.
There are numerous business that can help with the process of claiming the ERC. Some well-known business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information provided here is based upon general understanding and might not reflect the most current updates or changes to the ERC. It is very important to seek advice from a tax professional or visit the official internal revenue service website for the most precise and updated information concerning eligibility, declaring treatments, and available help.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on salaries paid to all workers whether they really worked or not. To put it simply, even if the.
workers worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees on average in 2019, then the credit is.
allowed only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just money payments but likewise a part of the cost of company.
offered healthcare. Kentucky Employee Retention Credit Subtraction
Payment.
Companies can be right away reimbursed for the credit by decreasing the quantity of payroll taxes they.