Lets talk first about Will Employee Retention Credit Be Extended :
Our group here what do these people doing everybody in this space is helping teach people about ERC and uh always offer a stunning breakfast and have people truly discover 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 ‘d like to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I indicate you know if you simply start to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I suggest think about the number of 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 validated and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you know when you
get this you understand the check is opted for sure which’s when they pay so they do not pay anything till they actually get the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the way they transfer it into their bank account and they can truly trust Wonder trust that the process has actually been ended up and how many you think you have actually processed given 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something really essential today the employee retention credit which the majority of you have never ever heard of I certainly hadn’t become aware of it until very just recently and discovered a lot about it due to the fact that this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers between five and five hundred so I have actually 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 hard this isn’t like PPP we just contact your bank supervisor and say give me a loan it does not 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 become yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to learn everything 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 developed 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 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 money payroll tax refund alright go on sorry I simply have to ensure we got that point I imply that’s a big distinction a loan versus money money I like money money that’s what we’re speaking about fine 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 real money from the IRS all right so let’s speak about how it works since it seems like to me if it’s a if it’s staff member retention credit that person needed to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you needed to have owned an organization however it’s based upon you having W-2 employees 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 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 six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my favorite part money just how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the employee’s income to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus because the turmoil of the pandemic so they wanted 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 five thousand Max and after that what occurs 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 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 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 typically Kevin is if you took PPP money somewhere around ten 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 workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge certainly now the huge question is why does nobody know about this since look when I initially heard about this when I initially fulfilled 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 many numerous financial investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I do not believe it since I utilize 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 used them wisely to stay alive throughout the pandemic so when I heard about this I said nah it can’t be true however when I dug around I even contacted us to my politician pals Guv Senators they didn’t know about it I suggest that’s how you understand that’s how false information is that there’s no details out there then a lot of people told me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does nobody know about the worker retention credit you know what’s fascinating you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very 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 mayhem because remember in the initial 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 altered the law in 2021 the banks were not doing ERC since 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 truly he or she’s never ever done it previously do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this before unless you have an account that went into this service and bottom line my firm Kevin has actually been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge big business customers have actually worked with bottom line to recover other government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose service is fully or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. Once the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying wages varies by whether an employer had, on average, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing assistance generally supply expertise and assistance to help organizations browse the complex procedure of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Will Employee Retention Credit Be Extended
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based upon factors such as your industry, income, and operations. If you satisfy the requirements for the credit and determine the maximum credit amount you can claim, they can help determine.
Documents and Estimation: ERC filing services will help in gathering the essential paperwork, such as payroll records and financial statements, to support your claim. They will likewise assist calculate the credit amount based upon eligible salaries 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 identify prospective chances for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the required types and documentation on your behalf. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have actually progressed over time. These business stay updated with the current modifications and guarantee that your filings abide by the most current guidelines. They can likewise provide continuous assistance if the IRS demands additional details or conducts an audit related to your ERC claim.
It’s important to research and veterinarian any business offering ERC filing assistance to ensure their trustworthiness and expertise. Try to find established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who provide ERC submitting assistance.
Remember that while these companies can supply important help, it’s always a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed choices and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to keep and pay their workers throughout 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 employers, including for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, companies should meet one of two requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a considerable decline is specified 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% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices 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 amounts to a portion (up to 70%) of certified earnings paid to workers, consisting of specific health plan costs. 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, organizations that got an Income Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they got a PPP loan. However, the exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing eligible employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the employer.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have actually evolved in time. The very best course of action is to seek advice from a tax expert or visit the official IRS site for the most up-to-date and in-depth details relating to the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, an organization must satisfy among the following criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and organizations that got a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC includes finishing the required forms and consisting of the credit on your employment income tax return (typically Type 941). The exact time it requires to process the credit can vary based upon numerous elements, consisting of the complexity of your company and the work of the IRS. It’s recommended to speak with a tax professional for assistance specific to your situation.
There are several companies that can assist with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some well-known companies that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these companies straight to ask about their services and fees.
Please keep in mind that the information provided here is based upon general knowledge and might not reflect the most current updates or modifications to the ERC. It is necessary to speak with a tax professional or visit the main internal revenue service website for the most updated and accurate info concerning eligibility, declaring treatments, and readily available assistance.
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 employees whether they really worked or not. Simply put, even if the.
workers worked full-time and earned money for full time work, the employer 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 staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments however likewise a part of the cost of employer.
offered healthcare. Will Employee Retention Credit Be Extended
Companies can be right away repaid for the credit by reducing the amount of payroll taxes they.