Lets talk first about Overcome Employee Retention Credit Denial :
Our team here what do these guys doing everybody in this room is assisting teach people about ERC and uh always offer a gorgeous breakfast and have individuals truly learn more about the program we ought to head to the space where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I imply you know if you simply start to take a 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 indicate it’s just I indicate think of the number of real clients 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 customer so that’s how you have the ability to track it you know when you
get this you know the check is gone for sure which’s when they pay so they don’t pay anything until they in fact get the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can genuinely rely on Wonder trust that the process has been completed and the number of you believe you’ve processed since you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing and that’s what you require you require specialists 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 crucial today the worker retention credit which the majority of you have actually never ever heard of I certainly hadn’t heard of it till really just recently and found out a lot about it because this is most likely the lowest cost of capital for any small company anywhere
anytime if you have staff members between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas 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 up your bank supervisor and state give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform 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 like this program it’s going away very soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction 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 all right 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 money cash that’s what we’re talking about 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 difficult check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker retention credit that person 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 investors it’s for staff members right you needed to have owned a company however it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 workers 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 6 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 2 3 and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those six quarters so the computation in 2020 to be specific 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 increased to 70 of the worker’s wage 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 turmoil 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 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you create twenty 6 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 great deal of cash it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city 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 huge undoubtedly now the huge question is why does nobody learn about this since look when I first found out about this when I initially met Josh you know I’ve got great deals of investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make lots of numerous investments in business owners of which lots of suffered through the pandemic when I first found out 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 been worthy of and we used them carefully to survive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my political leader buddies Guv Senators they didn’t learn about it I imply that’s how you know that’s how misinformation is that there’s no information out there then a bunch of people informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one know about the employee 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 very 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 procedure process that’s all um and here there was turmoil due to the fact that remember in the initial cares act you might not do both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they altered 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 federal government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not actually she or he’s never ever done it before do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this before unless you have an account that entered into this organization and bottom line my company Kevin has been in business since 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our big huge business clients have actually worked with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose company is fully or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Schedule.
1. The credit is offered to all employers no matter size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether a company had, usually, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing help normally supply knowledge and support to assist companies navigate the complicated process of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Overcome Employee Retention Credit Denial
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based upon factors such as your market, income, and operations. They can help identify if you meet the requirements for the credit and recognize the maximum credit quantity you can declare.
Documents and Calculation: ERC filing services will help in gathering the needed documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit amount based on qualified salaries and other qualifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can review your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the necessary kinds and paperwork on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have evolved in time. These business stay upgraded with the current modifications and guarantee that your filings comply with the most present standards. They can likewise offer ongoing support if the IRS demands additional information or conducts an audit related to your ERC claim.
It is necessary to research and veterinarian any business offering ERC filing support to ensure their reliability and knowledge. Look for established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax professionals who offer ERC submitting support.
Keep in mind that while these business can supply valuable support, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure 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 steps. The objective of the ERC is to encourage companies to retain and pay their workers during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit services, tax-exempt organizations, and specific governmental entities. To qualify, employers need to meet one of two requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As pointed out earlier, 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 specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease 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 portion (approximately 70%) of certified wages paid to workers, including certain health plan expenses. 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, services that got an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they got a PPP loan. However, the exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing qualified employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, usually Type 941. If the credit exceeds the quantity 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 developed gradually. The best strategy is to talk to a tax expert or visit the official internal revenue service website for the most comprehensive and updated info relating to the ERC, consisting of any current legal changes or updates.
To get approved for the ERC, a business needs to meet one of the following requirements:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For example, federal government entities and companies that received a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC includes completing the required types and consisting of the credit on your work income tax return (generally Kind 941). The exact time it takes to process the credit can differ based on numerous aspects, including 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 scenario.
There are a number of companies that can help with the process of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some popular business that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these business directly to ask about their charges and services.
Please note that the info provided here is based on general knowledge and might not show the most recent updates or changes to the ERC. It’s important to seek advice from a tax expert or check out the main IRS website for the most accurate and updated details relating to eligibility, claiming procedures, and readily available assistance.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on salaries paid to all workers whether they actually worked or not. Simply put, even if the.
workers worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
allowed only for wages paid to workers who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply money payments however also a part of the expense of company.
provided healthcare. Overcome Employee Retention Credit Denial
Payment.
Companies can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.