Lets talk first about New York Treatment Of Employee Retention Credit :
Our group here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly provide a gorgeous breakfast and have individuals truly discover the program we must 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 actually Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I mean you know if you simply 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 suggest it’s simply I imply consider how many real 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 confirmed and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you know when you
receive this you know the check is chosen sure and that’s when they pay so they don’t pay anything till they in fact receive the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the process has been completed and the number of you think you’ve processed because you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you need 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 discussing something truly essential today the worker retention credit which the majority of you have actually never heard of I certainly hadn’t heard of it till extremely recently and found out a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees in 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 Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just call up your bank supervisor and state give 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 have actually ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing very soon you got to learn everything about it let’s talk staff member 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 services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund all right go on sorry I just have to ensure we got that point I imply that’s a big difference a loan versus money cash I like money 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 beautiful tough check in the mail where you get real cash from the internal revenue service all right so let’s talk about how it works because it sounds like to me if it’s a if it’s employee retention credit that person needed to be an employee 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 had to have actually owned an organization however it’s based on you having W-2 workers 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 need to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 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 preferred part cash just how much can you get back per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s wage to an optimum of 5 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 occur um they simply altered the rules in.
2021 versus because the chaos of the pandemic so they wished 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 as much as five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five 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 cash would need to be lowered 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 cash somewhere around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment in New York 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 IRS so it’s big clearly now the big question is why does no one learn about this because appearance when I initially found out about this when I first fulfilled Josh you understand I have actually got lots of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make lots of numerous financial investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I don’t believe 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 which were well should have and we utilized them carefully to survive during the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t know about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a bunch of individuals informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 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 just process procedure that’s all um and here there was turmoil since keep in mind in the initial cares act you might refrain from doing both programs so if you had actually done PPP you might not do ERC in the initial 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 ever 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 previously 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 accountant no your accounting professional’s never ever done this before unless you have an account that entered into this organization and bottom line my company Kevin has stayed in business since 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose business is completely or partly suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business 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 federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries varies by whether a company had, typically, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing help typically supply knowledge and assistance to help businesses browse the complex process of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? New York Treatment Of Employee Retention Credit
Eligibility Assessment: These companies will evaluate your company’s eligibility for the ERC based on factors such as your market, income, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can declare, they can assist identify.
Paperwork and Estimation: ERC filing services will help in collecting the required documentation, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit amount based upon qualified earnings and other qualifying expenses.
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 chances for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Help: Business concentrating on ERC filings will prepare and send the needed forms and documents in your place. This includes finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have actually developed gradually. These business remain updated with the current modifications and make sure that your filings abide by the most current standards. They can likewise supply ongoing assistance if the IRS requests additional information or performs an audit related to your ERC claim.
It’s important to research and vet any business using ERC filing assistance to ensure their trustworthiness and competence. Search for recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax specialists who use ERC filing assistance.
Keep in mind that while these business can provide important assistance, it’s constantly an excellent concept to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified decisions and guarantee precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage organizations to maintain and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, companies must fulfill one of two criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a significant decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified 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 instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of qualified wages paid to workers, including certain health insurance 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, services that got an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they received a PPP loan. The exact same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, enabling qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for organizations to modify prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, usually Form 941. If the credit surpasses the amount of employment taxes owed, the excess can be reimbursed to the company.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have actually progressed over time. The very best course of action is to speak with a tax professional or go to the main internal revenue service site for the most current and in-depth info concerning the ERC, including any recent legal modifications or updates.
To get approved for the ERC, a service should fulfill one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a considerable decline is defined as a 20% decrease in gross invoices 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 same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt companies, however there are some exceptions. For example, federal government entities and organizations that received a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC includes finishing the necessary types and consisting of the credit on your work income tax return (generally Type 941). The exact time it takes to process the credit can vary based on numerous elements, consisting of the intricacy of your service and the workload of the IRS. It’s advised to talk to a tax professional for assistance specific to your circumstance.
There are numerous business that can help with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some widely known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these companies directly to ask about their services and costs.
Please note that the details supplied here is based on general understanding and may not reflect the most recent updates or changes to the ERC. It’s important to talk to a tax professional or visit the official IRS website for the most accurate and updated information regarding 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 earnings paid to all employees whether they really worked or not. To put it simply, even if the.
employees worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
enabled only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just cash payments however likewise a portion of the expense of employer.
offered health care. New York Treatment Of Employee Retention Credit
Employers can be instantly repaid for the credit by decreasing the quantity of payroll taxes they.