Lets talk first about Moss Adams Employee Retention Credit :
Our team here what do these men doing everyone in this room is helping teach people about ERC and uh always supply a gorgeous breakfast and have individuals actually learn about the program we need to head to the space where we are able to display some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I suggest you know if you just start to 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 mean think of the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the customer so that’s how you have the ability to track it you know when you
receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything till they in fact get the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their bank account and they can genuinely rely on Wonder trust that the procedure has been finished and the number of you think you’ve processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you require 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 truly essential today the worker retention credit which the majority of you have actually never ever become aware of I certainly hadn’t heard of it till very recently and discovered a lot about it since this is probably the lowest expense of capital for any small company anywhere
anytime if you have workers in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call 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 tell all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away very 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 during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash money payroll tax refund all right go on sorry I just have to make sure we got that point I imply that’s a huge difference a loan versus cash money I like money money that’s what we’re speaking about 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 original cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual cash from the internal revenue service all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that person had 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 workers right you had to have actually owned a company but it’s based upon you having W-2 workers in America not 10.99. As long as you had W-2 staff members 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 very first 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact 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 escalated to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the mayhem of the pandemic so they wished to even get more to keep those workers 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 come up with twenty 6 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 caution here the PPP cash would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual 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 money you would still get a million dollar in the mail from the internal revenue service so it’s huge undoubtedly now the huge concern is why does no one understand about this due to the fact that look when I first found out about this when I first satisfied Josh you understand I’ve got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which numerous suffered through the pandemic when I first heard about this I called BS I don’t think it due to the fact that I utilize the PPP we went through the money 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 used them wisely to survive during the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even contacted us to my political leader friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a bunch 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 nobody know about the employee retention credit you know what’s intriguing you’re talking about the banks Kevin because in the PPP loan process the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our country and they would process process 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 chaos because keep in mind in the initial cares act you could not do both programs so if you had actually done PPP you could refrain from doing ERC in the original 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 government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly he or she’s never ever done it previously do the banks do it nope the banks don’t do it the payroll companies 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 went into this business and bottom line my company Kevin has actually stayed in business because 2009 and we have actually been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our huge big corporate clients have worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property 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 employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose company is fully or partly suspended.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of a similar 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 certifying earnings paid up to $10,000 in overall.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether a company had, typically, basically than.
100 workers in 2019.
Companies that focus on ERC filing assistance typically offer know-how and support to help organizations navigate the complex procedure of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Moss Adams Employee Retention Credit
Eligibility Evaluation: These business will assess your company’s eligibility for the ERC based upon aspects such as your market, income, and operations. They can assist identify if you meet the requirements for the credit and identify the optimum credit quantity you can claim.
Paperwork and Estimation: ERC filing services will assist in gathering the essential documents, such as payroll records and financial declarations, to support your claim. They will also help compute the credit quantity based on qualified salaries and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can review your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the required kinds and paperwork in your place. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have actually progressed in time. These business remain updated with the most recent modifications and guarantee that your filings comply with the most existing guidelines. If the Internal revenue service requests extra information or performs an audit related to your ERC claim, they can also provide continuous assistance.
It is necessary to research and vet any company providing ERC filing assistance to guarantee their credibility and competence. Try to find recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who use ERC filing support.
Bear in mind that while these business can supply valuable help, it’s constantly a great concept to have a basic 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 goal of the ERC is to encourage organizations to retain 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 available to qualified companies, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To qualify, companies must fulfill one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As discussed previously, 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 substantial decline 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 instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of qualified incomes paid to staff members, consisting of specific health plan expenses. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they received a PPP loan. Nevertheless, the very same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, permitting eligible employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision provides an opportunity for businesses to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, generally Form 941. If the credit surpasses the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is essential to keep in mind that the ERC provisions and eligibility requirements have evolved over time. The very best strategy is to seek advice from a tax professional or visit the main IRS website for the most up-to-date and comprehensive details regarding the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a service needs to fulfill one of the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a considerable decline is defined 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% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt companies, but there are some exceptions. For example, government entities and organizations that got a PPP loan may have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the needed types and consisting of the credit on your work income tax return (usually Kind 941). The exact time it requires to process the credit can vary based upon a number of factors, consisting of the intricacy of your company and the workload of the internal revenue service. It’s advised to speak with a tax professional for assistance particular to your scenario.
There are several business that can assist with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some popular business that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and call these companies directly to inquire about their services and fees.
Please note that the details provided here is based upon general knowledge and might not show the most current updates or changes to the ERC. It’s important to consult with a tax expert or check out the official IRS site for the most current and precise details relating to eligibility, claiming procedures, and available support.
Less than 100. If the company had 100 or fewer employees usually in 2019, then the credit is based.
on incomes paid to all workers whether they actually worked or not. To put it simply, even if the.
workers worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members usually in 2019, then the credit is.
enabled only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply cash payments but also a part of the expense of company.
provided healthcare. Moss Adams Employee Retention Credit
Companies can be right away repaid for the credit by lowering the amount of payroll taxes they.