Lets talk first about Department Of Employee Retention Credit Scam :
Our team here what do these guys doing everybody in this space is helping teach people about ERC and uh always offer a gorgeous breakfast and have people really learn more about the program we must head to the space 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 hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I mean you understand if you just start to take a look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I imply think of how many 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 validated and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you know when you
get this you know the check is chosen sure which’s when they pay so they do not pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their savings account and they can really trust Wonder trust that the procedure has actually been completed and the number of you think you have actually processed because 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 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 Terrific here you’re at my YouTube channel we’re speaking about something truly essential today the staff member retention credit which the majority of you have never ever become aware of I certainly had not become aware of it till really just recently and found out a lot about it because this is probably the most affordable cost of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 simply contact 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 inform us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away very soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered organizations three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge difference right there two 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 all right go on sorry I just have to ensure we got that point I mean that’s a big distinction a loan versus money cash 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 difficult check in the mail where you get actual cash from the IRS all right so let’s discuss how it works because it seems 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 Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have actually owned a service but it’s based upon you having W-2 staff members 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 qualified so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first six months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my preferred part money just how much can you get back per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the employee’s income 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 worker’s wage to a maximum of 7 thousand per quarter how did that take place um they simply changed the rules in.
2021 versus since the turmoil 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 up to five thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a great deal of money it is now there’s a caveat here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around ten 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 employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge certainly now the huge question is why does no one understand about this because appearance when I initially heard about this when I initially satisfied Josh you know I have actually got lots of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make numerous many 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 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 should have and we used them carefully to stay alive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even contacted us to my political leader pals Guv Senators they didn’t know 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 individuals told 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 understand what’s interesting 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 process procedure that’s all um and here there was mayhem because remember in the initial cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO know how to do this not really she or he’s never ever 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 company your accounting professional no your accountant’s never done this before unless you have an account that went into this company and bottom line my firm Kevin has been in business because 2009 and we’ve 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 business clients have worked with bottom line to recover other federal government programs we’ve 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 government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross receipts, company whose organization is fully or partly suspended.
decrease by more than 50%.
1. The credit is offered to all employers no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of certifying salaries differs by whether an employer had, typically, basically than.
100 employees in 2019.
Companies that focus on ERC filing support generally provide knowledge and assistance to help companies browse the complicated process of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Department Of Employee Retention Credit Scam
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based upon elements such as your market, earnings, and operations. If you satisfy the requirements for the credit and recognize the optimum credit quantity you can declare, they can help figure out.
Documentation and Calculation: ERC filing services will help in gathering the essential documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit amount based on qualified incomes and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can review your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you modify previous tax returns to claim these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the essential types and documentation in your place. This consists of finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have progressed gradually. These companies stay updated with the latest changes and make sure that your filings abide by the most present guidelines. If the Internal revenue service requests additional information or carries out an audit associated to your ERC claim, they can likewise supply continuous assistance.
It is necessary to research study and veterinarian any company providing ERC filing help to ensure their reliability and know-how. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax professionals who use ERC filing support.
Keep in mind that while these business can supply important help, it’s always a great idea to have a basic understanding of the ERC requirements and process 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. government as part of COVID-19 relief procedures. The objective of the ERC is to motivate companies to retain and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, companies need to fulfill one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the 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 employer’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of certified incomes 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: At first, businesses that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. The same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, permitting eligible companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to amend prior-year income tax return and get refunds.
Declaring the Credit: Companies 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 quantity of work taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have developed over time. The very best strategy is to seek advice from a tax expert or go to the main IRS website for the most current and detailed information regarding the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, a service should meet among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross receipts 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 organizations of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and companies that got a PPP loan might have constraints on declaring the credit.
The procedure for claiming the ERC includes completing the necessary kinds and consisting of the credit on your work income tax return (normally Kind 941). The exact time it requires to process the credit can vary based on several elements, consisting of the complexity of your company and the workload of the internal revenue service. It’s advised to consult with a tax expert for guidance specific to your situation.
There are several companies that can help with the process of declaring the ERC. Some widely known companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details offered here is based on general understanding and may not show the most current updates or modifications to the ERC. It’s important to seek advice from a tax expert or go to the main IRS site for the most up-to-date and precise info concerning eligibility, declaring treatments, and available help.
Less than 100. If the employer had 100 or fewer employees usually in 2019, then the credit is based.
on wages paid to all workers whether they actually worked or not. In other words, even if the.
workers worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 employees on average 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 simply money payments however likewise a part of the cost of employer.
provided healthcare. Department Of Employee Retention Credit Scam
Employers can be right away compensated for the credit by reducing the amount of payroll taxes they.