Lets talk first about Qualified Health Plan Expenses Employee Retention Credit :
Our group here what do these people doing everyone in this room is helping teach people about ERC and uh always provide a gorgeous breakfast and have people actually learn about the program we ought to head to the space where we are able to show a few of the checks that we are getting for business and I wish 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 method I suggest you understand if you just start to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I indicate think of 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 validated the numbers are verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you understand when you
receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything up until they really get the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their bank account and they can really trust Wonder trust that the procedure has actually been completed and how many you think you’ve processed since you started this we have to do with 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 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 Terrific here you’re at my YouTube channel we’re speaking about something truly important today the worker retention credit which the majority of you have never heard of I definitely hadn’t become aware of it until really recently and discovered a lot about it because this is probably the most affordable cost of capital for any small company anywhere
anytime if you have staff members in between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply phone your bank manager 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 like this program it’s going away soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big distinction 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 all right go on sorry I just need to make sure we got that point I imply that’s a big distinction a loan versus money money I like cash 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 original cares Act is the ERC and yes Kevin it is a beautiful tough check in the mail where you get actual money from the IRS 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 had to be an employee so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you had to have actually owned a company but it’s based on you having W-2 employees in America not 10.99. 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 have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and three of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part money how much can you return per worker that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wanted to even get more to keep those workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 up to five thousand Max and after that what occurs 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 6 thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP cash would have to be decreased 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 on average Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the big concern is why does no one know about this since look when I first found out about this when I first satisfied Josh you understand I’ve got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make many many financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially became aware of this I called BS I don’t think 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 deserved and we utilized them carefully to survive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even called to my political leader friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no details out there then a lot of individuals told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody understand about the employee retention credit you know what’s intriguing you’re speaking about the banks Kevin because 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 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 procedure procedure that’s all um and here there was turmoil due to the fact that remember in the original cares act you might not do both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from 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 understand how to do this not really he or she’s never ever done it previously do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this company and bottom line my company Kevin has been in business because 2009 and we have actually been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property 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 employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, company whose company is fully or partly suspended.
decline by more than 50%.
1. The credit is available to all employers despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is totally or partly 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 receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether a company had, typically, basically than.
100 workers in 2019.
Business that focus on ERC filing help typically supply knowledge and support to help organizations navigate the intricate process of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Qualified Health Plan Expenses Employee Retention Credit
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based on elements such as your industry, profits, and operations. If you satisfy the requirements for the credit and determine the maximum credit quantity you can claim, they can help determine.
Documents and Computation: ERC filing services will help in collecting the necessary paperwork, such as payroll records and monetary declarations, to support your claim. They will also help calculate the credit quantity based on eligible wages and other certifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the essential types and documentation in your place. This includes completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have progressed in time. These business remain upgraded with the current changes and ensure that your filings adhere to the most present standards. They can also supply continuous support if the internal revenue service demands extra information or conducts an audit related to your ERC claim.
It’s important to research and veterinarian any company providing ERC filing assistance to guarantee their reliability and competence. Look for recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who provide ERC submitting support.
Remember that while these business can offer important support, it’s always a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to motivate businesses to keep and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit businesses, tax-exempt companies, and specific governmental entities. To certify, companies need to fulfill one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As pointed out previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the exact 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 company’s share of Social Security taxes. The credit quantity amounts to a percentage (up to 70%) of certified wages paid to workers, including specific health plan expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got a PPP loan. However, the very same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, enabling eligible employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision supplies a chance for businesses to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Type 941. The excess can be reimbursed to the employer if the credit surpasses the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have actually evolved over time. The best course of action is to speak with a tax professional or go to the main IRS website for the most updated and comprehensive info concerning the ERC, including any current legislative modifications or updates.
To get approved for the ERC, an organization needs to satisfy among the following requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable 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 offered to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and companies that received a PPP loan may have constraints on claiming the credit.
The process for claiming the ERC involves finishing the required types and including the credit on your work income tax return (typically Type 941). The exact time it requires to process the credit can vary based upon several aspects, consisting of the complexity of your business and the workload of the internal revenue service. It’s suggested to speak with a tax expert for assistance particular to your scenario.
There are numerous business that can help with the procedure of declaring the ERC. Some widely known companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on basic understanding and might not show the most current updates or changes to the ERC. It’s important to consult with a tax expert or go to the official internal revenue service website for the most up-to-date and accurate info concerning eligibility, declaring procedures, and offered assistance.
Less than 100. If the company had 100 or fewer employees usually in 2019, then the credit is based.
on wages paid to all staff members whether they really worked or not. To put it simply, even if the.
staff members worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
allowed only for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply cash payments but likewise a part of the cost of employer.
provided healthcare. Qualified Health Plan Expenses Employee Retention Credit
Companies can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.