Lets talk first about 2301 Employee Retention Credit :
Our group here what do these people doing everyone in this space is helping teach people about ERC and uh constantly offer a stunning breakfast and have individuals truly discover the program we should head to the space where we have the ability to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I mean you understand if you simply begin to take a look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I mean consider how many real customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you know when you
receive this you understand the check is opted for sure which’s when they pay so they do not pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their bank account and they can really trust Wonder trust that the process has 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 six billion dollars wow so plainly they understand what they’re doing which’s what you need you require professionals on the other end of the phone to process this and get it to where you get among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re speaking about something really crucial today the employee retention credit which most of you have actually never ever heard of I certainly had not become aware of it till extremely just recently and discovered a lot about it due to the fact that this is probably the lowest cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply call your bank supervisor and state give me a loan it does not work there’s not a loan it’s an application and Josh is going to tell 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 soon you got to discover 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 developed the cares Act and the cares act used organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund alright go on sorry I simply have to make certain we got that point I indicate that’s a huge distinction a loan versus money money I like money money that’s what we’re discussing 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 lovely hard check in the mail where you get actual cash from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that individual needed to be a staff member so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have owned a service however it’s based upon 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six 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 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s determined you need to be on the W-2 throughout that duration 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 exact Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s income to an optimum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus because the chaos 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 as much as five thousand Max and after that what takes place 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 6 thousand dollars per worker that is since that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the huge concern is why does no one know about this due to the fact that appearance when I first found out about this when I first met Josh you know I have actually got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of 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 which were well should have and we utilized them wisely to stay alive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my politician 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 info 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 learn about the worker retention credit you know what’s intriguing you’re discussing the banks Kevin because 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 big banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was chaos 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 original program and when they altered the law in 2021 the banks were not doing ERC due to the fact that 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 he or she’s never ever done it in the past 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 business your accountant no your accountant’s never done this prior to unless you have an account that went into this service and bottom line my company Kevin has been in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big corporate customers have dealt with bottom line to recover other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
company whose organization is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all companies regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. When the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing support usually supply expertise and support to assist services browse the intricate procedure of claiming the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? 2301 Employee Retention Credit
Eligibility Evaluation: These companies will assess your company’s eligibility for the ERC based on factors such as your market, revenue, and operations. If you satisfy the requirements for the credit and identify the maximum credit quantity you can claim, they can help identify.
Documentation and Estimation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will also help calculate the credit amount based upon qualified salaries and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to identify prospective chances for retroactive credits. They can assist you amend prior tax returns to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and submit the necessary kinds and documentation on your behalf. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have actually developed gradually. These business remain upgraded with the latest changes and make sure that your filings abide by the most existing standards. If the IRS requests extra details or performs an audit related to your ERC claim, they can also provide ongoing support.
It is necessary to research study and veterinarian any company offering ERC filing assistance to guarantee their trustworthiness and proficiency. Search for established companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who offer ERC submitting assistance.
Keep in mind that while these companies can provide important help, it’s constantly a good concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified choices and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate businesses to keep and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers must meet one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As discussed earlier, for 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the 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 amounts to a portion (as much as 70%) of qualified earnings paid to workers, consisting of certain health insurance expenditures. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they got a PPP loan. Nevertheless, the very same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, permitting eligible companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for services to amend prior-year income tax return and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Kind 941. The excess can be reimbursed to the company if the credit goes beyond the amount of employment taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have progressed gradually. The best strategy is to consult with a tax expert or visit the official internal revenue service website for the most in-depth and updated information concerning the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, an organization should meet among the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross invoices 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 receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt companies, however there are some exceptions. Federal government entities and businesses that received a PPP loan might have constraints on claiming the credit.
The procedure for claiming the ERC involves completing the essential kinds and consisting of the credit on your employment tax return (usually Form 941). The exact time it takes to process the credit can differ based upon a number of aspects, including the complexity of your service and the workload of the internal revenue service. It’s recommended to seek advice from a tax expert for guidance specific to your situation.
There are several business that can aid with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some popular business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these companies straight to inquire about their charges and services.
Please keep in mind that the information supplied here is based on basic knowledge and may not show the most current updates or changes to the ERC. It is essential to talk to a tax expert or check out the official IRS site for the most accurate and updated information concerning eligibility, declaring procedures, and readily available support.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on incomes paid to all workers whether they actually worked or not. To put it simply, even if the.
employees worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 staff members usually in 2019, then the credit is.
enabled only for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just money payments however also a part of the cost of employer.
provided healthcare. 2301 Employee Retention Credit
Companies can be instantly compensated for the credit by lowering the quantity of payroll taxes they.