Lets talk first about Congress Employee Retention Credit :
Our group here what do these guys doing everybody in this space is assisting teach people about ERC and uh always offer a gorgeous breakfast and have individuals really learn about the program we ought to head to the space where we are able to show some of the checks that we are getting for companies 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 customers verifying that the check is on the way I mean you know if you just begin 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 imply think of the number of actual clients 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’re able to track it you understand when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything till they really get the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their savings account and they can genuinely trust Wonder trust that the procedure has been completed and how many you believe you’ve processed because you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you require you require 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 speaking about something really important today the employee retention credit which most of you have never heard of I definitely hadn’t become aware of it up until very just recently and learned a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees in between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply call your bank manager and say give me a loan it doesn’t 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 love this program it’s disappearing very soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a big distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund all right go on sorry I just have to ensure we got that point I suggest that’s a huge difference a loan versus cash money I like cash cash that’s what we’re discussing 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 lovely hard check in the mail where you get actual money from the internal revenue service all right so let’s talk about how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual had to be an employee so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have actually owned a business but it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 workers 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 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my preferred part money how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s salary to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to a maximum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the mayhem 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 approximately five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a lot of cash it is now there’s a caveat here the PPP money would need to be minimized 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 on average Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state 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 cash you would still get a million dollar in the mail from the IRS so it’s substantial certainly now the big question is why does no one understand about this due to the fact that appearance when I first found out about this when I first met Josh you understand I’ve got great deals of investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous many financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially found out about this I called BS I do not believe it since I use 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 deserved and we used them carefully to stay alive during the pandemic so when I became aware of this I stated nah it can’t hold 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 information out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does nobody learn about the staff member retention credit you understand what’s fascinating you’re talking about the banks Kevin since in the PPP loan process the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was turmoil due to the fact that remember in the initial cares act you could not do both programs so if you had done PPP you might not do 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 federal government never made it clear to anybody about how to.
do this does your CFO understand 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 a few 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 service and bottom line my company Kevin has actually stayed in business given that 2009 and we have actually been working 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 customers have dealt with bottom line to recuperate other federal 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 federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Due to the fact that of COVID-19 or whose gross receipts, company whose company is completely or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is readily available to all companies regardless of size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is fully or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying incomes differs by whether a company had, on average, basically than.
100 employees in 2019.
Business that concentrate on ERC filing assistance generally supply proficiency and support to assist services browse the complicated procedure of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Congress Employee Retention Credit
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based on elements such as your industry, earnings, and operations. If you satisfy the requirements for the credit and determine the optimum credit quantity you can declare, they can assist determine.
Documents and Estimation: ERC filing services will help in gathering the essential paperwork, such as payroll records and financial declarations, to support your claim. They will also assist calculate the credit amount based on eligible incomes and other certifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can evaluate your past payroll records and financials to identify potential chances for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the necessary types and documentation in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually developed over time. These business remain updated with the most recent modifications and make sure that your filings comply with the most present guidelines. If the Internal revenue service demands extra information or conducts an audit associated to your ERC claim, they can also supply ongoing support.
It is necessary to research study and vet any company providing ERC filing assistance to guarantee their reliability and knowledge. Search for established companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax specialists who offer ERC submitting support.
Bear in mind that while these business can provide valuable help, it’s constantly a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to maintain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers should fulfill one of two requirements:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As mentioned earlier, for 2021, a substantial decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (up to 70%) of certified earnings paid to employees, including certain health insurance expenses. 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, services that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they got a PPP loan. The very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, permitting eligible employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for businesses to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Kind 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the employer.
It is essential to note that the ERC provisions and eligibility criteria have actually developed in time. The best course of action is to speak with a tax professional or check out the official IRS site for the most up-to-date and in-depth information concerning the ERC, including any recent legislative modifications or updates.
To get approved for the ERC, an organization should meet one of the following requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt companies, however there are some exceptions. For example, federal government entities and services that received a PPP loan might have restrictions on claiming the credit.
The procedure for declaring the ERC includes finishing the necessary kinds and consisting of the credit on your employment income tax return (generally Form 941). The exact time it requires to process the credit can vary based upon a number of elements, including the intricacy of your organization and the workload of the internal revenue service. It’s suggested to seek advice from a tax expert for guidance specific to your circumstance.
There are numerous business that can help with the procedure of declaring the ERC. Some popular business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details offered here is based upon general knowledge and might not reflect the most recent updates or changes to the ERC. It is necessary to speak with a tax professional or go to the official IRS website for the most accurate and updated information relating to eligibility, declaring treatments, and available support.
Less than 100. If the employer had 100 or fewer workers on average in 2019, then the credit is based.
on salaries paid to all employees whether they in fact worked or not. To put it simply, even if the.
employees worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled just for incomes paid to employees who did not work during the calendar quarter.
In both cases, “wages” consists of not simply money payments however likewise a part of the expense of employer.
supplied healthcare. Congress Employee Retention Credit
Payment.
Employers can be instantly repaid for the credit by lowering the amount of payroll taxes they.