Lets talk first about Nitti Employee Retention Credit :
Our group here what do these people doing everyone in this space is assisting teach individuals about ERC and uh always supply a beautiful breakfast and have people actually learn more about the program we must head to the room where we are able to display 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 way I imply you understand if you simply begin to take a look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I imply think about the number of real 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 validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure and that’s when they pay so they do not pay anything until they in fact get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their bank account and they can really trust Wonder trust that the procedure has actually been ended up and the number of you believe you have actually processed given that you began this we have to do with 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 among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re speaking about something actually crucial today the staff member retention credit which most of you have actually never become aware of I definitely had not become aware of it until very recently and discovered a lot about it because this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder 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 call up 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 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 love this program it’s disappearing soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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 certain we got that point I suggest that’s a big difference a loan versus money cash I like cash money that’s what we’re speaking about fine 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 difficult check in the mail where you get actual 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 individual needed to be a worker 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 owned a company but it’s based on you having W-2 employees 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 qualified so you have to be on payroll in 2020 on the W-2 and you need 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 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my favorite part money just how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the employee’s wage to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the chaos 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 as much as five thousand Max and after that 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 staff member that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s say 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 internal revenue service so it’s huge certainly now the huge concern is why does no one understand about this due to the fact that look when I initially became aware of this when I first fulfilled Josh you understand I’ve got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous many financial investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I don’t believe it since I use the PPP we went through the money 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 should have and we used them wisely to stay alive during the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my political leader buddies Governor Senators they didn’t understand about it I imply that’s how you understand that’s how misinformation is that there’s no details out there then a lot of people informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s interesting you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it really clear that if you desired 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 procedure process that’s all um and here there was mayhem because remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you might not do ERC in the original program and when they altered the law in 2021 the banks were not doing ERC because 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 understand how to do this not really he or she’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accountant’s never ever done this prior to unless you have an account that went into this business and bottom line my company Kevin has been in business since 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business clients have actually dealt with bottom line to recuperate other federal government programs we have actually 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 federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose business is totally or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is readily available to all employers regardless of size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying earnings differs by whether an employer had, usually, basically than.
100 workers in 2019.
Companies that focus on ERC filing support typically offer expertise and assistance to help businesses browse the complicated process of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Nitti Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based on factors such as your market, earnings, and operations. If you meet the requirements for the credit and identify the optimum credit amount you can claim, they can help figure out.
Paperwork and Calculation: ERC filing services will help in gathering the needed documents, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit amount based on qualified salaries and other certifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to identify potential chances for retroactive credits. They can help you modify prior income tax return to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the needed kinds and documentation in your place. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have progressed over time. These companies remain updated with the latest modifications and make sure that your filings adhere to the most current guidelines. They can likewise provide continuous assistance if the IRS demands extra details or conducts an audit related to your ERC claim.
It is essential to research and vet any business providing ERC filing assistance to guarantee their credibility and expertise. Try to find recognized firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who use ERC submitting support.
Keep in mind that while these companies can supply important support, it’s constantly a good idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed choices and guarantee accurate filings.
The Employee 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 encourage organizations to keep and pay their employees 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, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers should meet one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As mentioned previously, for 2021, a substantial decrease is defined as a 20% decline in gross invoices compared to the exact 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.
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 portion (up to 70%) of qualified earnings paid to staff members, consisting of specific health plan expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they received a PPP loan. The same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, enabling qualified companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, normally Type 941. The excess can be reimbursed to the employer if the credit exceeds the amount of employment taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have progressed with time. The best strategy is to consult with a tax professional or visit the main internal revenue service website for the most comprehensive and current information relating to the ERC, including any current legislative changes or updates.
To qualify for the ERC, a service must meet one of the following requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. For 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and businesses that received a PPP loan may have restrictions on claiming the credit.
The process for declaring the ERC involves completing the needed types and consisting of the credit on your work tax return (normally Type 941). The exact time it takes to process the credit can vary based on a number of elements, including the intricacy of your business and the work of the IRS. It’s recommended to speak with a tax professional for guidance specific to your situation.
There are several companies that can help with the procedure of declaring the ERC. Some widely known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on general knowledge and might not show the most recent updates or modifications to the ERC. It’s important to talk to a tax expert or go to the official internal revenue service site for the most up-to-date and accurate details regarding eligibility, claiming treatments, and available support.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on incomes paid to all staff members whether they in fact worked or not. Simply put, even if the.
workers worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers on average in 2019, then the credit is.
enabled just for earnings paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments however also a portion of the cost of company.
offered health care. Nitti Employee Retention Credit
Payment.
Employers can be immediately repaid for the credit by minimizing the quantity of payroll taxes they.