Lets talk first about Termination Of Employee Retention Credit :
Our group here what do these people doing everyone in this space is helping teach people about ERC and uh constantly supply a beautiful breakfast and have individuals truly discover 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 literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I indicate you know if you just start to take a look at some 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 just I suggest think about how many actual 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 verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
receive this you understand the check is chosen sure which’s when they pay so they don’t pay anything up until they really receive the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they deposit it into their savings account and they can genuinely trust Wonder trust that the process has actually been completed and the number of you believe you’ve processed since you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you require you need experts 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 Fantastic here you’re at my YouTube channel we’re discussing something actually essential today the worker retention credit which the majority of you have never become aware of I certainly hadn’t become aware of it till extremely recently and found out a lot about it since this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I’ve 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 challenging this isn’t like PPP we simply call up your bank supervisor and say give 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’ve become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to find out all about it let’s talk worker 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 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money money payroll tax refund alright go on sorry I simply have to make sure we got that point I indicate that’s a big difference a loan versus cash cash I like money money that’s what we’re talking 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 lovely hard check in the mail where you get actual cash from the IRS all right so let’s discuss how it works since it seems like to me if it’s a if it’s worker 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 shareholders it’s for employees right you had to have actually owned a company but it’s based upon you having W-2 staff members 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 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. alright 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 cash how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that take place um they simply changed 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 workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a great deal of money it is now there’s a caution here the PPP money would have to be minimized from the twenty six 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 cash somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New york city 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 IRS so it’s big certainly now the huge question is why does no one learn about this because look when I initially heard about this when I first satisfied Josh you understand I have actually got lots of investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous lots of investments in business owners of which numerous suffered through the pandemic when I first heard 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 deserved and we utilized them carefully to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician friends Governor Senators they didn’t learn about it I suggest that’s how you know 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 since you took the PPP likewise not true so let’s ask Josh why does no one know about the employee retention credit you understand what’s fascinating you’re speaking about the banks Kevin since in the PPP loan process 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was chaos because remember in the initial cares act you might not do both programs so if you had done PPP you could not do ERC in the initial program and when they changed 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 government never made it clear to anybody about how to.
do this does your CFO know how to do this not really he or she’s never ever done it in the past 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 business your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this organization and bottom line my company Kevin has stayed in business because 2009 and we have actually been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our big big business customers have dealt with bottom line to recover other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
employer whose organization is completely or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all employers no matter size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partly suspended by 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 invoices exceed 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing assistance usually offer competence and support to assist organizations browse the complicated procedure of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Termination Of Employee Retention Credit
Eligibility Assessment: These companies will assess your company’s eligibility for the ERC based on factors such as your industry, profits, and operations. They can help figure out if you satisfy the requirements for the credit and recognize the optimum credit quantity you can claim.
Documentation and Computation: ERC filing services will assist in collecting the essential documentation, such as payroll records and monetary statements, to support your claim. They will likewise help compute the credit amount based on eligible incomes and other certifying costs.
Retroactive Claim Evaluation: If you are eligible 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 help you change previous tax returns to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the needed types and paperwork in your place. This includes completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have actually progressed in time. These companies stay updated with the current changes and ensure that your filings abide by the most current standards. If the IRS demands extra info or conducts an audit associated to your ERC claim, they can also offer continuous assistance.
It’s important to research study and vet any business offering ERC filing assistance to guarantee their trustworthiness and proficiency. Look for established firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who use ERC filing support.
Keep in mind that while these companies can provide valuable help, it’s always a great concept to have a standard understanding of the ERC requirements and process yourself. This will help you make informed decisions and ensure 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 procedures. The objective of the ERC is to motivate companies to retain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit services, tax-exempt companies, and particular governmental entities. To qualify, companies must fulfill one of two requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As mentioned previously, for 2021, a significant decrease is defined as a 20% decrease in gross invoices 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 same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of qualified incomes paid to employees, including specific health insurance costs. 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, businesses that received an Income Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. The exact same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting eligible employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies a chance for businesses to amend prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, generally Form 941. The excess can be reimbursed to the company if the credit exceeds the amount of employment taxes owed.
It is essential to note that the ERC arrangements and eligibility requirements have developed with time. The very best course of action is to consult with a tax professional or check out the main IRS site for the most current and in-depth information concerning the ERC, including any current legal modifications or updates.
To receive the ERC, a company must meet one of the following criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For example, federal government entities and companies that got a PPP loan might have constraints on claiming the credit.
The process for claiming the ERC includes finishing the necessary types and consisting of the credit on your work income tax return (typically Form 941). The exact time it requires to process the credit can vary based on several aspects, consisting of the intricacy of your organization and the work of the IRS. It’s recommended to consult with a tax professional for guidance particular to your circumstance.
There are several companies that can assist with the procedure of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some widely known companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and get in touch with these companies directly to inquire about their services and charges.
Please keep in mind that the details provided here is based on general knowledge and might not reflect the most current updates or changes to the ERC. It is essential to seek advice from a tax professional or check out the main IRS site for the most up-to-date and accurate information regarding eligibility, declaring 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 salaries paid to all workers whether they really worked or not. In other words, even if the.
workers worked full time and made money for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
allowed just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments but also a portion of the cost of employer.
supplied health care. Termination Of Employee Retention Credit
Employers can be instantly repaid for the credit by lowering the amount of payroll taxes they.