Lets talk first about New Jersey Employee Retention Credit :
Our team here what do these people doing everybody in this space is assisting teach people about ERC and uh always offer a gorgeous breakfast and have people truly learn about the program we should head to the room where we are able 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 numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I suggest you understand if you just start to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I mean consider 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 internal revenue service heading to the customer so that’s how you have the ability to track it you understand when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything till they actually get the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the method they deposit it into their savings account and they can genuinely trust Wonder trust that the process has been finished and the number of you believe you have actually processed given that you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you need you need experts 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 Wonderful here you’re at my YouTube channel we’re talking about something actually crucial today the employee retention credit which most of you have never ever heard of I definitely hadn’t become aware of it till very just recently and learned a lot about it because this is probably the lowest cost of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 state 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 ended up being yes the Ambassador and paid spokesperson for this I like this program it’s disappearing soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash cash payroll tax refund fine go on sorry I just have to ensure we got that point I suggest that’s a huge distinction a loan versus cash money I like cash money 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 stunning tough check in the mail where you get actual cash from the IRS all right so let’s talk about how it works because it sounds like to me if it’s a if it’s worker retention credit that individual had to be an employee 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 staff members right you needed to have owned a company but it’s based upon you having W-2 staff members 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 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 right so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part money how much can you get back per employee that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s income to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s wage to an optimum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that the chaos 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 then what happens 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 six thousand dollars per worker that is since that’s a lot of money it is now there’s a caveat 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 reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York 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 IRS so it’s huge clearly now the huge question is why does no one know about this since look when I first found out about this when I initially met Josh you know I have actually got great deals of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I do not think it due to the fact that I use 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 which were well should have and we utilized 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 called to my political leader good friends Governor Senators they didn’t know about it I suggest that’s how you know 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 know about the staff member retention credit you understand what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan process the federal government made it extremely 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 procedure 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 mayhem due to the fact that remember in the original cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not actually she or he’s never done it previously do the banks do it nope the banks do not 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 ever done this before unless you have an account that went into this service and bottom line my company Kevin has stayed in business considering that 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our huge big corporate clients have worked with bottom line to recuperate other 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 created to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
employer whose business is totally or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is readily available to all companies no matter size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. Once the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether a company had, on average, basically than.
100 workers in 2019.
Business that specialize in ERC filing assistance generally provide proficiency and assistance to assist companies browse the intricate process of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? New Jersey Employee Retention Credit
Eligibility Assessment: These companies will assess your company’s eligibility for the ERC based upon factors such as your industry, revenue, and operations. If you meet the requirements for the credit and identify the optimum credit quantity you can declare, they can help figure out.
Documentation and Estimation: ERC filing services will assist in gathering the required documentation, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit amount based on qualified wages and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the needed types and documentation in your place. This includes completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved over time. These companies remain upgraded with the most recent changes and ensure that your filings adhere to the most current standards. If the IRS demands extra info or performs an audit related to your ERC claim, they can also offer continuous assistance.
It is necessary to research and vet any company providing ERC filing support to ensure their reliability and expertise. Try to find established companies with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who use ERC filing assistance.
Keep in mind that while these companies can provide important help, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will help you make informed decisions 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 businesses to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit organizations, tax-exempt organizations, and specific governmental entities. To qualify, employers should meet one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As discussed earlier, for 2021, a significant decrease is specified 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% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts 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 amounts to a percentage (up to 70%) of certified earnings paid to employees, consisting of particular health plan costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. Nevertheless, the very same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, allowing eligible employers to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to change prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, usually Form 941. The excess can be refunded to the company if the credit surpasses the amount of work taxes owed.
It is necessary to note that the ERC provisions and eligibility criteria have actually developed with time. The very best course of action is to seek advice from a tax expert or visit the official internal revenue service website for the most comprehensive and current details regarding the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company should fulfill one of the following criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt organizations, but there are some exceptions. For example, government entities and services that got a PPP loan may have constraints on declaring the credit.
The process for claiming the ERC includes finishing the required forms and including the credit on your employment income tax return (typically Kind 941). The exact time it requires to process the credit can differ based on numerous factors, including the complexity of your organization and the workload of the internal revenue service. It’s suggested to consult with a tax expert for assistance particular to your scenario.
There are several business that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some widely known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these companies directly to ask about their fees and services.
Please keep in mind that the details provided here is based upon basic knowledge and might not reflect the most recent updates or changes to the ERC. It is very important to seek advice from a tax expert or check out the official internal revenue service website for the most updated and accurate info relating to eligibility, declaring procedures, and readily available help.
Less than 100. If the employer had 100 or fewer workers usually in 2019, then the credit is based.
on incomes paid to all employees whether they actually worked or not. In other words, 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 employer had more than 100 staff members typically in 2019, then the credit is.
enabled only for wages paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not just cash payments however likewise a part of the expense of employer.
supplied healthcare. New Jersey Employee Retention Credit
Companies can be instantly reimbursed for the credit by minimizing the amount of payroll taxes they.