Lets talk first about What Is The Non Refundable Employee Retention Credit :
Our team here what do these people doing everyone in this space is helping teach people about ERC and uh constantly offer a lovely breakfast and have people really find out about the program we ought to head to the space where we have the ability to show a few of the checks that we are getting for business 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 duplicate copies of the letters that go to clients confirming that the check is on the method I mean 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 imply it’s just I mean consider 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 confirmed the numbers are confirmed and the check is on the mail in the mail from the internal revenue service 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 till they really get the cash they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they deposit it into their savings account and they can genuinely rely on Wonder trust that the procedure has been completed and the number of you believe you have actually processed because you started 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 need you require 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 most of you have never ever become aware of I definitely hadn’t become aware of it till very just recently and found out a lot about it due to the fact that this is probably the most affordable expense of capital for any small company anywhere
anytime if you have employees 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 Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just phone your bank manager 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 us all about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I love 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 begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge distinction right there two 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 fine go on sorry I simply need to make sure we got that point I imply that’s a big difference a loan versus money money I like money money 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 speak about how it works because it sounds like to me if it’s a if it’s employee retention credit that person 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 workers right you had to have actually owned a business but it’s based on 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 very first 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my preferred part cash just how much can you return per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus because the chaos 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 up to five thousand Max and after that what takes place 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 worker that is because that’s a great deal of money it is now there’s a caution here the PPP cash would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment 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 IRS so it’s big clearly now the big question is why does nobody learn about this due to the fact that look when I initially heard about this when I initially satisfied Josh you know I’ve got lots of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make numerous many financial investments in entrepreneurs of which numerous suffered through the pandemic when I first heard about this I called BS I don’t think it because I utilize the PPP we went through the cash center Banks to get it it was extremely 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 stay alive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even contacted us to my politician good friends Guv Senators they didn’t know about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of individuals informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan process 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 just procedure process that’s all um and here there was chaos due to the fact that remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they changed 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 made it clear to anybody about how to.
do this does your CFO know how to do this not actually he or she’s never 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 accountant 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 stayed in business because 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big big corporate clients have worked with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose company is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s company is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes differs by whether a company had, on average, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing help usually provide know-how and assistance to help companies browse the complex procedure of declaring the credit. They can use different services, including:.
How is the employee retention credit calculated? What Is The Non Refundable Employee Retention Credit
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based on elements such as your industry, revenue, and operations. They can assist figure out if you fulfill the requirements for the credit and recognize the optimum credit amount you can declare.
Documentation and Estimation: ERC filing services will help in gathering the essential documents, such as payroll records and monetary declarations, to support your claim. They will also assist calculate the credit quantity based upon qualified wages and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these business can examine your past payroll records and financials to identify potential chances for retroactive credits. They can help you amend prior tax returns to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the necessary kinds and documents in your place. This consists of completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have actually evolved in time. These companies stay upgraded with the most recent changes and guarantee that your filings adhere to the most present standards. If the Internal revenue service requests extra information or carries out an audit associated to your ERC claim, they can also provide ongoing support.
It’s important to research study and veterinarian any company providing ERC filing assistance to ensure their reliability and proficiency. Try to find established companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax specialists who provide ERC filing assistance.
Bear in mind that while these business can offer important assistance, it’s always a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate businesses to maintain and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit companies, tax-exempt organizations, and particular governmental entities. To certify, employers should satisfy one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As pointed out previously, for 2021, a considerable decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined 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 company’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of qualified earnings paid to workers, including specific health insurance costs. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that received an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. The very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing eligible companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers an opportunity for companies to modify prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, normally Kind 941. The excess can be reimbursed to the company if the credit goes beyond the quantity of employment taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have evolved gradually. The very best strategy is to talk to a tax professional or check out the main internal revenue service site for the most in-depth and up-to-date info concerning the ERC, including any recent legislative changes or updates.
To receive the ERC, a company needs to fulfill among the following requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease 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 instantly preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt organizations, but there are some exceptions. For example, government entities and organizations that received a PPP loan may have limitations on claiming the credit.
The process for declaring the ERC includes completing the required forms and including the credit on your employment income tax return (typically Type 941). The exact time it takes to process the credit can differ based upon several aspects, consisting of the complexity of your service and the work of the IRS. It’s suggested to seek advice from a tax expert for assistance specific to your circumstance.
There are numerous business that can help with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some well-known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these business straight to inquire about their services and fees.
Please note that the info provided here is based upon basic knowledge and may not show the most recent updates or modifications to the ERC. It’s important to speak with a tax expert or go to the main internal revenue service website for the most updated and accurate details concerning eligibility, claiming procedures, and available assistance.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on incomes paid to all workers whether they really worked or not. To put it simply, even if the.
staff members 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 typically in 2019, then the credit is.
permitted only for salaries paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just cash payments but likewise a portion of the cost of employer.
offered health care. What Is The Non Refundable Employee Retention Credit
Companies can be instantly reimbursed for the credit by decreasing the quantity of payroll taxes they.