Lets talk first about Oklahoma Employee Retention Credit :
Our group here what do these men doing everybody in this room is helping teach individuals about ERC and uh always supply a gorgeous breakfast and have individuals truly discover the program we should head to the room where we are able to show some of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I imply you understand if you just 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 mean it’s simply I mean consider how many actual customers that went through the program yeah this is the very end this is the party at the end when the check is validated 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
get this you know the check is gone for sure which’s when they pay so they do not pay anything till they in fact get the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they transfer it into their checking account and they can truly trust Wonder trust that the process has actually been finished and how many you believe you’ve processed considering 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 and that’s what you need you require 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 Terrific here you’re at my YouTube channel we’re talking about something truly crucial today the employee retention credit which the majority of you have actually never ever become aware of I certainly had not heard of it until really just recently and learned a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers between 5 and five hundred so I’ve 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 not easy this isn’t like PPP we just contact your bank supervisor and state offer 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 enjoy this program it’s disappearing soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there 2 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 simply have to ensure we got that point I suggest that’s a huge difference a loan versus cash money I like money cash that’s what we’re speaking about okay 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 gorgeous difficult check in the mail where you get actual money from the IRS all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual needed 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 investors it’s for employees right you needed to have actually owned a business however 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 first six months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you return 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 worker’s salary to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum 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 employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as 5 thousand Max and then what happens 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a lot of money it is now there’s a caveat here the PPP money would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 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 IRS so it’s substantial certainly now the big question is why does nobody know about this because look when I first heard about this when I first satisfied Josh you understand I have actually got lots of financial investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make numerous numerous financial investments in business owners of which numerous suffered through the pandemic when I first found out about this I called BS I do not believe it due to the fact that I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we utilized them sensibly to stay alive during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even called to my political leader friends Guv Senators they didn’t know about it I imply that’s how you understand that’s how false information is that there’s no info 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 understand about the staff member retention credit you know what’s fascinating you’re speaking about the banks Kevin since 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 big 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 simply process procedure that’s all um and here there was chaos because keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you might not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO know how to do this not actually she or he’s never ever done it in the past 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 business your accounting professional no your accountant’s never done this before unless you have an account that went into this company and bottom line my firm Kevin has actually been in business because 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our huge big business customers have actually worked with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose company is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered 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.
companies who take Small company Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries varies by whether an employer had, typically, basically than.
100 staff members in 2019.
Business that concentrate on ERC filing assistance normally offer proficiency and support to help companies navigate the intricate procedure of claiming the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Oklahoma Employee Retention Credit
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based on factors such as your industry, income, and operations. If you meet the requirements for the credit and identify the optimum credit amount you can declare, they can assist determine.
Paperwork and Computation: ERC filing services will help in collecting the required paperwork, such as payroll records and financial statements, to support your claim. They will also assist compute the credit amount based on qualified earnings and other qualifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to recognize potential chances for retroactive credits. They can help you amend prior income tax return to claim these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the necessary types and documentation on your behalf. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have actually developed in time. These companies stay upgraded with the latest modifications and make sure that your filings comply with the most current guidelines. If the Internal revenue service requests additional info or performs an audit related to your ERC claim, they can likewise offer ongoing support.
It is essential to research study and veterinarian any business providing ERC filing help to guarantee their credibility and expertise. Search for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who use ERC submitting assistance.
Keep in mind that while these companies can provide valuable assistance, it’s always a great concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed choices and ensure precise 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 objective of the ERC is to motivate companies to maintain and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, companies need to satisfy one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a percentage (up to 70%) of certified incomes paid to employees, including particular health insurance expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. The exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, permitting eligible employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides a chance for businesses to modify prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Type 941. If the credit surpasses the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have progressed gradually. The very best strategy is to speak with a tax professional or go to the official IRS website for the most in-depth and current info relating to the ERC, including any current legal modifications or updates.
To get approved for the ERC, a service must satisfy among the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant 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 instantly preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and organizations that got a PPP loan may have restrictions on declaring the credit.
The process for claiming the ERC involves finishing the needed types and consisting of the credit on your employment tax return (typically Kind 941). The exact time it takes 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 recommended to consult with a tax professional for assistance specific to your situation.
There are several business that can help with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some well-known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business directly to inquire about their fees and services.
Please keep in mind that the info supplied here is based upon basic understanding and may not reflect the most current updates or modifications to the ERC. It is necessary to speak with a tax expert or go to the official internal revenue service site for the most accurate and up-to-date information regarding eligibility, claiming procedures, and available support.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on earnings paid to all employees whether they really 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. The credit is if the employer had more than 100 workers on average in 2019.
enabled 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 likewise a portion of the cost of company.
offered health care. Oklahoma Employee Retention Credit
Companies can be instantly repaid for the credit by reducing the amount of payroll taxes they.