Lets talk first about New Mexico Employee Retention Credit :
Our team here what do these men doing everyone in this room is assisting teach people about ERC and uh always offer a beautiful breakfast and have people really find out about the program we need to head to the space where we have the ability to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I suggest you understand if you simply start to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I imply 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 verified the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
receive this you understand the check is chosen sure which’s when they pay so they do not pay anything up until they actually get the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their bank account and they can truly trust Wonder trust that the procedure has actually been ended up and how many you think you’ve processed given that you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you need 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 Wonderful here you’re at my YouTube channel we’re talking about something truly crucial today the staff member retention credit which most of you have never heard of I certainly hadn’t become aware of it until very recently and learned a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have staff members 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 largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call your bank supervisor and say 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 representative for this I love this program it’s disappearing very soon you got to learn all about it let’s talk employee 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 provided businesses 3 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 difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I simply need to make certain we got that point I indicate that’s a big distinction a loan versus money money I like money money 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 lovely tough check in the mail where you get actual cash from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual had to be a staff member so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you needed to have owned a business however it’s based on you having W-2 staff members in America not 10.99. so as long as you had W-2 employees 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 need to be on payroll for the first six months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three 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 cash how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s income 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 wage to a maximum of 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the mayhem of the pandemic so they wanted to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 up to 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a great deal of money it is now there’s a caveat here the PPP money would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the big question is why does no one know about this since appearance when I first heard about this when I first fulfilled Josh you know I’ve got lots of financial investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which lots of suffered through the pandemic when I first found out about this I called BS I don’t believe it because I use the PPP we went through the cash center Banks to get it it was extremely 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 heard 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 understand about it I indicate that’s how you understand that’s how misinformation is that there’s no info out there then a lot of people informed me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s interesting you’re speaking about the banks Kevin because 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 nation 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 because remember in the original cares act you might not do both programs so if you had actually 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 any person about how to.
do this does your CFO know how to do this not really he or she’s never ever 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 company your accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this organization and bottom line my firm Kevin has been in business given that 2009 and we’ve been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our big huge business clients have dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property 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 workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose organization is completely or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is offered to all employers despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings differs by whether a company had, on average, more or less than.
100 employees in 2019.
Companies that focus on ERC filing assistance normally offer competence and support to help companies navigate the complex procedure of claiming the credit. They can use numerous services, including:.
How is the employee retention credit calculated? New Mexico Employee Retention Credit
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon aspects such as your market, earnings, and operations. They can assist identify if you meet the requirements for the credit and recognize the optimum credit quantity you can declare.
Paperwork and Estimation: ERC filing services will assist in collecting the needed documents, such as payroll records and monetary declarations, to support your claim. They will also help determine the credit quantity based upon eligible incomes and other certifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to determine possible opportunities for retroactive credits. They can help you change previous tax returns to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the essential forms and documentation in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have evolved in time. These companies remain updated with the current modifications and ensure that your filings comply with the most present guidelines. If the IRS demands extra info or conducts an audit associated to your ERC claim, they can also supply continuous support.
It is necessary to research and vet any company offering ERC filing help to ensure their reliability and knowledge. Look for established companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax specialists who offer ERC filing assistance.
Bear in mind that while these companies can provide important help, it’s always an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed decisions and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to maintain and pay their employees during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, companies must satisfy one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (approximately 70%) of qualified incomes paid to workers, consisting of specific health plan expenditures. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. The very same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, permitting qualified employers to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for organizations to amend prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Kind 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the company.
It is necessary to note that the ERC arrangements and eligibility requirements have actually progressed over time. The very best course of action is to consult with a tax professional or go to the main IRS site for the most up-to-date and comprehensive details relating to the ERC, including any current legislative modifications or updates.
To get approved for the ERC, a business needs to satisfy among the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, government entities and businesses that received a PPP loan may have limitations on claiming the credit.
The procedure for declaring the ERC includes completing the necessary forms and consisting of the credit on your work tax return (normally Kind 941). The exact time it requires to process the credit can vary based upon numerous aspects, including the complexity of your service and the workload of the IRS. It’s suggested to seek advice from a tax professional for assistance specific to your situation.
There are a number of business that can assist with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some widely known business that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these business straight to ask about their fees and services.
Please keep in mind that the info offered here is based on basic understanding and might not show the most current updates or changes to the ERC. It is necessary to consult with a tax professional or go to the official internal revenue service website for the most accurate and updated information concerning eligibility, declaring treatments, and available support.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on earnings paid to all staff members whether they in fact worked or not. In other words, even if the.
employees 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.
allowed just for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just cash payments but also a part of the cost of employer.
supplied health care. New Mexico Employee Retention Credit
Employers can be right away repaid for the credit by decreasing the quantity of payroll taxes they.