New Article: 941 Form Employee Retention Credit 2023

Lets talk first about 941 Form Employee Retention Credit :

Our team here what do these people doing everyone in this space is assisting teach people about ERC and uh constantly offer a lovely breakfast and have individuals really discover the program we should head to the space where we are able 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 millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I suggest you understand if you just begin to 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 imply it’s simply I imply think of how many actual clients that went through the program yeah this is the very end this is the celebration 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 understand when you

get this you know the check is opted for sure which’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 confirmed the check is on the method they transfer it into their checking account and they can truly rely on Wonder trust that the procedure has 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 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 talking about something really essential today the staff member retention credit which most of you have never heard of I definitely hadn’t heard of it up until very recently and learned a lot about it due to the fact that this is probably the lowest expense of capital for any small company anywhere

anytime if you have workers in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder 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 contact your bank manager and state give me a loan it does not 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’ve ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided organizations 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 huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.

remedy 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 huge difference a loan versus money money I like money cash that’s what we’re speaking 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 initial cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real cash from the IRS all right so let’s speak about how it works since it sounds like to me if it’s a if it’s worker retention credit that person had to be an employee so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for staff members right you had to have actually owned a service however it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible so you need 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 correct so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part cash how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the employee’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of seven thousand per quarter how did that take place um they simply altered the rules in.

2021 versus because the chaos of the pandemic so they wished to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop 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 lot of money it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 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 money you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the big concern is why does no one learn about this since appearance when I first became aware of this when I initially met Josh you know I have actually got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I do not think it because I utilize the PPP we went through the cash 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 should have and we utilized them sensibly to survive during the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my politician pals Governor Senators they didn’t know about it I imply 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 because you took the PPP likewise not true so let’s ask Josh why does nobody know about the staff member retention credit you know what’s intriguing you’re speaking about the banks Kevin due to the fact that 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 huge 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 just procedure process that’s all um and here there was chaos since keep in mind 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 altered 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 ever made it clear to anyone about how to.

do this does your CFO understand how to do this not really he or she’s never done it before 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 accounting professional no your accountant’s never done this prior to unless you have an account that went into this company and bottom line my firm Kevin has stayed in business because 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have worked 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 home real estate tax all of these other government programs.

The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
employer whose company is completely or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Accessibility.
1. The credit is readily available to all companies regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is totally or partly suspended by federal government order due to COVID-19.
throughout 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 comparable quarter in 2019 they no longer certify.
after the end of that quarter.

Calculation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether an employer had, typically, basically than.
100 workers in 2019.

Business that focus on ERC filing assistance typically supply know-how and assistance to help businesses navigate the complicated procedure of declaring the credit. They can offer numerous services, including:.

 

How is the employee retention credit calculated? 941 Form Employee Retention Credit

Eligibility Assessment: These companies will examine your business’s eligibility for the ERC based on aspects such as your industry, revenue, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can declare, they can assist figure out.
Paperwork and Computation: ERC filing services will help in collecting the required documentation, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit quantity based on qualified incomes and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize potential chances for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Help: Business concentrating on ERC filings will prepare and submit the necessary types and documentation on your behalf. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have progressed in time. These companies remain upgraded with the most recent modifications and make sure that your filings abide by the most present guidelines. If the Internal revenue service requests extra info or carries out an audit related to your ERC claim, they can likewise supply ongoing assistance.
It is very important to research and veterinarian any company using ERC filing support to guarantee their trustworthiness and knowledge. Search for established companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax specialists who offer ERC filing support.

Remember that while these business can supply valuable assistance, it’s constantly a great concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and ensure precise filings.

The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage businesses to keep and pay their staff members during the pandemic, even if their operations have been affected.

Here are some key points about the ERC:.

Eligibility: The ERC is available to qualified companies, including for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, employers should meet one of two criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As discussed earlier, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately 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 (as much as 70%) of certified wages paid to employees, including particular health insurance expenses. 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, organizations that received an Income Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they received a PPP loan. The very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, permitting eligible companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to amend prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, normally Form 941. The excess can be reimbursed to the company if the credit surpasses the amount of employment taxes owed.
It is essential to keep in mind that the ERC arrangements and eligibility criteria have progressed gradually. The best strategy is to seek advice from a tax expert or go to the main IRS site for the most current and detailed info regarding the ERC, consisting of any current legal modifications or updates.

To receive the ERC, a service must meet one of the following criteria:.

Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact 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 organizations, but there are some exceptions. For instance, government entities and organizations that received a PPP loan might have limitations on declaring the credit.

The process for declaring the ERC includes finishing the necessary forms and including the credit on your work tax return (typically Form 941). The exact time it takes to process the credit can differ based on numerous factors, including the intricacy of your company and the workload of the internal revenue service. It’s advised to talk to a tax professional for guidance particular to your circumstance.

There are numerous companies that can assist with the procedure of declaring the ERC. Some well-known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.

Please note that the details supplied here is based on general knowledge and may not reflect the most current updates or changes to the ERC. It is necessary to consult with a tax expert or go to the official IRS site for the most updated and precise information regarding eligibility, declaring treatments, and available assistance.

Less than 100. If the employer had 100 or less staff members typically in 2019, then the credit is based.
on salaries paid to all workers whether they in fact worked or not. In other words, even if the.
employees worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 employees usually in 2019, then the credit is.
permitted only for earnings paid to workers who did not work during the calendar quarter.
In both cases, “earnings” includes not just cash payments but likewise a portion of the expense of company.
offered health care. 941 Form Employee Retention Credit
Payment.

Companies can be immediately repaid for the credit by lowering the quantity of payroll taxes they.