Lets talk first about Bloomberg Innovation Refunds :
Our group here what do these people doing everyone in this room is helping teach people about ERC and uh constantly supply a stunning breakfast and have individuals actually learn more about the program we ought to head to the space where we are able to display a few of the checks that we are getting for business and I wish 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 clients validating that the check is on the way I mean you understand if you simply begin 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 mean it’s simply I suggest think of how many real 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 verified 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 gone for sure which’s when they pay so they do not pay anything until they actually get the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their savings account and they can really rely on Wonder trust that the procedure has actually been finished and the number of you think you’ve processed since you began this we’re about 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 need specialists 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 crucial today the worker retention credit which most of you have never heard of I definitely hadn’t heard of it up until very recently and found out a lot about it because this is probably the lowest expense of capital for any small company anywhere
anytime if you have workers between 5 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 largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply contact your bank manager and state provide 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 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 throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big difference right there 2 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 all right go on sorry I just have to make certain 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 talking about all right 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 tough 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 individual needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have owned a business but it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 employees and you paid federal payroll taxes that’s why you would be qualified 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 proper so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per worker that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to a maximum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a lot of money it is now there’s a caution here the PPP cash would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average 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 City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the big question is why does nobody know about this since look when I initially became aware of this when I initially met Josh you understand I have actually got lots of investments in great deals of business I’m a major supporter for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which numerous suffered through the pandemic when I first found out about this I called BS I do not believe it due to the fact that 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 been worthy of and we used them sensibly to survive throughout the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my political leader friends Guv Senators they didn’t know about it I suggest that’s how you understand that’s how misinformation is that there’s no info out there then a lot of people told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody know about the worker retention credit you understand what’s fascinating you’re discussing the banks Kevin because in the PPP loan process the federal government made it extremely 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 simply procedure procedure that’s all um and here there was chaos since remember in the original cares act you could not do both programs so if you had actually done PPP you might not do ERC in the initial program and when they changed 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 government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not really she or he’s never ever done it in the past do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this business and bottom line my company Kevin has been in business considering that 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 great deal of our huge big business 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 real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, company whose business is totally or partially suspended.
decrease by more than 50%.
1. The credit is available to all employers regardless of size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are determined 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 company’s gross invoices are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of qualifying wages varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Business that specialize in ERC filing support generally supply competence and support to help companies navigate the complicated procedure of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Bloomberg Innovation Refunds
Eligibility Assessment: These companies will examine your organization’s eligibility for the ERC based on aspects such as your market, profits, and operations. If you fulfill the requirements for the credit and determine the maximum credit quantity you can claim, they can help identify.
Documentation and Estimation: ERC filing services will help in collecting the essential documents, such as payroll records and monetary statements, to support your claim. They will likewise assist determine the credit quantity based on qualified salaries and other qualifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to determine potential opportunities for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required forms and documents on your behalf. This consists of completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have developed in time. These business remain upgraded with the latest changes and guarantee that your filings comply with the most existing standards. They can also offer continuous assistance if the internal revenue service requests extra info or carries out an audit related to your ERC claim.
It is essential to research and veterinarian any company providing ERC filing help to guarantee their reliability and competence. Search for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax specialists who provide ERC submitting assistance.
Keep in mind that while these business can offer valuable help, it’s always a great idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified choices and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate companies to maintain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To certify, companies should fulfill one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately 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 portion (as much as 70%) of certified salaries paid to staff members, including particular 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: At first, businesses that got a Paycheck 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. Nevertheless, the exact 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, enabling qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for organizations to amend prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, typically Type 941. If the credit exceeds the quantity of work taxes owed, the excess can be reimbursed to the company.
It is essential to note that the ERC provisions and eligibility requirements have developed gradually. The best strategy is to speak with a tax professional or visit the official internal revenue service site for the most current and in-depth info regarding the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a business needs to meet among the following requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decline 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% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt organizations, however there are some exceptions. For example, federal government entities and businesses that got a PPP loan may have constraints on claiming the credit.
The procedure for declaring the ERC involves completing the essential types and consisting of the credit on your work tax return (normally Form 941). The exact time it takes to process the credit can differ based upon several elements, including the complexity of your business and the workload of the internal revenue service. It’s suggested to seek advice from a tax professional for guidance specific to your scenario.
There are several companies that can help with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these companies straight to ask about their services and fees.
Please note that the information provided here is based on basic knowledge and might not show the most recent updates or modifications to the ERC. It’s important to talk to a tax professional or go to the main internal revenue service website for the most accurate and current info relating to eligibility, declaring treatments, and available assistance.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on wages paid to all staff members whether they in fact worked or not. Simply put, even if the.
employees worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
enabled only for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments however also a portion of the cost of employer.
provided health care. Bloomberg Innovation Refunds
Employers can be right away repaid for the credit by lowering the quantity of payroll taxes they.