Get Covid Employee Retention Credits 2023

Lets talk first about Covid Employee Retention Credits :

Our group here what do these men doing everybody in this room is helping teach people about ERC and uh constantly provide a stunning breakfast and have people actually learn more about the program we need to head to the room where we are able to display some of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I indicate you know if you simply begin to take a 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 suggest it’s just I mean think of the number of actual customers that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you understand when you

get this you know the check is gone for sure and that’s when they pay so they don’t pay anything till they in fact receive the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they deposit it into their checking account and they can really rely on Wonder trust that the process has been completed and the number of you think you have actually processed given that you started this we have to do with 35 000 of these for

 


about six billion dollars wow so clearly they know what they’re doing and that’s what you need you need 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 actually essential today the staff member retention credit which most of you have actually never ever become aware of I certainly had not heard of it till very recently and learned a lot about it due to the fact that this is most likely the lowest cost of capital for any small business anywhere

anytime if you have employees between five and five hundred so I’ve got the expert 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 hard this isn’t like PPP we simply phone your bank manager and say offer 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 have actually ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.

remedy the cash cash payroll tax refund okay go on sorry I just have to ensure we got that point I suggest that’s a big distinction a loan versus money money I like money cash that’s what we’re talking 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 beautiful hard check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that person 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 staff members right you had to have actually owned a service but it’s based on you having W-2 staff members 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 eligible 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 correct so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two three and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my favorite part money just how much can you return per worker that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s income to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to a maximum of 7 thousand per quarter how did that occur um they just changed 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 as much as 5 thousand Max and after that what happens 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 money it is now there’s a caution here the PPP cash would have 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 money somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the huge concern is why does no one know about this since appearance when I first found out about this when I first fulfilled Josh you understand I’ve got great deals of financial investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make numerous lots of financial investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I do not think 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 which were well should have and we used them sensibly to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my politician good friends Governor Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s interesting you’re talking about the banks Kevin since 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 huge 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 just process process that’s all um and here there was chaos since keep in mind in the initial cares act you might not do both programs so if you had done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC because 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 understand how to do this not truly he or she’s never ever done it in the past do the banks do it nope the banks don’t 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 before unless you have an account that entered into this organization and bottom line my company Kevin has stayed in business given that 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge corporate customers have worked with bottom line to recover other government programs we’ve done sales tax and use tax joblessness 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 motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose service is fully or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is available to all employers regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross invoices 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 certifying earnings paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether an employer had, usually, more or less than.
100 staff members in 2019.

Companies that focus on ERC filing help generally supply know-how and support to help companies browse the complex procedure of declaring the credit. They can use various services, consisting of:.

 

How is the employee retention credit calculated? Covid Employee Retention Credits

Eligibility Evaluation: These business will assess your company’s eligibility for the ERC based on aspects such as your market, profits, and operations. They can help identify if you meet the requirements for the credit and recognize the maximum credit quantity you can claim.
Documents and Estimation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial statements, to support your claim. They will also assist compute the credit amount based on eligible earnings and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to recognize potential chances for retroactive credits. They can assist you modify previous income tax return to claim these refunds.
Filing Support: Business focusing on ERC filings will prepare and submit the essential types and documentation in your place. This includes completing Form 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have actually developed gradually. These companies remain upgraded with the most recent modifications and ensure that your filings abide by the most current standards. They can also offer continuous support if the internal revenue service demands additional info or carries out an audit related to your ERC claim.
It is necessary to research and vet any business providing ERC filing support to ensure their credibility and competence. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who use ERC submitting assistance.

Keep in mind that while these business can supply valuable support, it’s always a good idea to have a basic understanding of the ERC requirements and process yourself. This will help you make informed choices and guarantee precise filings.

The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage organizations to keep and pay their employees throughout the pandemic, even if their operations have actually been affected.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is readily available to qualified companies, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To qualify, companies need to fulfill one of two criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices 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 (approximately 70%) of certified earnings paid to workers, consisting of specific 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: At first, 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 claim the ERC even if they received a PPP loan. The same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, enabling qualified companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work tax returns, normally Type 941. The excess can be refunded to the company if the credit exceeds the quantity of work taxes owed.
It is essential to note that the ERC arrangements and eligibility criteria have evolved over time. The best course of action is to consult with a tax expert or check out the official IRS website for the most detailed and current details relating to the ERC, including any current legal modifications or updates.

To receive the ERC, an organization needs to meet one of the following criteria:.

The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a significant decline is defined as a 20% decline in gross receipts compared to the 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 businesses of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and companies that got a PPP loan may have constraints on claiming the credit.

The procedure for declaring the ERC involves finishing the necessary types and consisting of the credit on your work income tax return (generally Type 941). The exact time it takes to process the credit can vary based upon several factors, including the complexity of your service and the work of the internal revenue service. It’s advised to seek advice from a tax expert for guidance specific to your scenario.

There are a number of business that can assist with the process of claiming the ERC. Some widely known business that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.

Please keep in mind that the information provided here is based on basic understanding and might not reflect the most current updates or modifications to the ERC. It is essential to talk to a tax expert or visit the official internal revenue service site for the most updated and accurate information regarding eligibility, declaring procedures, and offered assistance.

Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on salaries paid to all employees whether they really worked or not. In other words, even if the.
staff members worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 staff members on average in 2019, then the credit is.
enabled just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “wages” includes not just money payments but likewise a portion of the cost of company.
offered healthcare. Covid Employee Retention Credits
Payment.

Employers can be immediately repaid for the credit by minimizing the amount of payroll taxes they.