Lets talk first about Employee Retention Credit 2021 Qualified Health Plan Expenses :
Our team here what do these men doing everybody in this space is helping teach people about ERC and uh always offer a stunning breakfast and have individuals actually discover the program we should head to the room where we have the ability to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I imply you know if you just begin to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I suggest think of the number of real customers that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you’re able to track it you know when you
receive this you understand the check is gone for sure and that’s when they pay so they do not pay anything till they really get the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they transfer it into their bank 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 since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’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 Fantastic here you’re at my YouTube channel we’re talking about something truly crucial today the employee retention credit which the majority of you have never become aware of I certainly hadn’t become aware of it up until really just recently and discovered a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply phone your bank supervisor 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’ve become yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to learn everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody 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.
fix the cash money payroll tax refund fine go on sorry I simply need to make certain we got that point I suggest that’s a huge distinction a loan versus money money I like money money that’s what we’re speaking 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 initial cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get real cash from the internal revenue service all right so let’s talk about how it works because it seems like to me if it’s a if it’s staff member 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 investors it’s for staff members right you had to have actually owned a service however it’s based on you having W-2 workers 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 have to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part money how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wished to even get more to keep those employees 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 occurs 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 six thousand dollars per employee that is because that’s a lot of money it is now there’s a caveat here the PPP cash would have to be lowered 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 somewhere around ten thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge obviously now the huge concern is why does no one learn about this since look when I first found out about this when I initially satisfied Josh you understand I have actually got great deals of investments in lots of business I’m a major advocate for entrepreneurship in America and make lots of many investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I don’t think it because I use the PPP we went through the money 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 utilized them sensibly to survive during the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my political leader friends Guv Senators they didn’t learn about it I mean that’s how you understand that’s how false information is that there’s no information out there then a lot of individuals told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one understand about the staff member retention credit you understand what’s intriguing you’re discussing the banks Kevin since in the PPP loan procedure 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 procedure that’s all um and here there was mayhem since remember in the original cares act you could refrain from doing 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 refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to any person about how to.
do this does your CFO know how to do this not really he or she’s never ever done it previously 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 accountant no your accountant’s never done this before unless you have an account that entered into this organization and bottom line my firm Kevin has actually stayed in business considering that 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our big big business customers have actually worked with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work chance 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 designed to encourage.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes 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%.
1. The credit is offered to all companies no matter size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’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.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It is effective for wages paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether a company had, usually, more or less than.
100 employees in 2019.
Companies that concentrate on ERC filing assistance normally offer knowledge and assistance to help companies navigate the complicated procedure of claiming the credit. They can provide various services, including:.
How is the employee retention credit calculated? Employee Retention Credit 2021 Qualified Health Plan Expenses
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based upon aspects such as your market, earnings, and operations. They can help figure out if you fulfill the requirements for the credit and recognize the maximum credit amount you can claim.
Documents and Calculation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit amount based upon eligible salaries and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these companies can examine your past payroll records and financials to determine possible chances for retroactive credits. They can assist you amend prior income tax return to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the needed kinds and documents in your place. This includes finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have actually developed with time. These companies stay upgraded with the latest changes and ensure that your filings comply with the most current guidelines. They can likewise provide continuous support if the IRS demands additional info or carries out an audit related to your ERC claim.
It’s important to research and veterinarian any company offering ERC filing support to guarantee their reliability and proficiency. Look for recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax professionals who offer ERC filing support.
Bear in mind that while these companies can supply valuable help, it’s always a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate organizations to maintain and pay their workers during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, consisting of for-profit companies, tax-exempt companies, and specific governmental entities. To certify, employers must satisfy one of two criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices 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 quantity is equal to a percentage (as much as 70%) of qualified salaries paid to employees, consisting of specific 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: Initially, organizations that got an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. The very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, enabling eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be refunded to the company if the credit surpasses the amount of work taxes owed.
It is essential to note that the ERC arrangements and eligibility requirements have developed with time. The very best strategy is to talk to a tax expert or visit the main IRS website for the most in-depth and updated information concerning the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, an organization needs to meet one of the following requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a significant decrease is defined 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% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. Federal government entities and companies that received a PPP loan might have limitations on declaring the credit.
The procedure for claiming the ERC includes finishing the necessary kinds and consisting of the credit on your work tax return (typically Type 941). The exact time it takes to process the credit can differ based upon numerous aspects, consisting of the complexity of your business and the work of the internal revenue service. It’s recommended to speak with a tax expert for guidance specific to your situation.
There are numerous companies that can help with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some popular business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and get in touch with these companies straight to inquire about their fees and services.
Please keep in mind that the info supplied here is based on general knowledge and may not reflect the most current updates or changes to the ERC. It is necessary to seek advice from a tax expert or check out the main internal revenue service website for the most updated and precise details relating to eligibility, declaring procedures, and available help.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on incomes paid to all workers whether they actually worked or not. To put it simply, even if the.
workers 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 workers on average in 2019.
permitted just for wages paid to employees who did not work during the calendar quarter.
In both cases, “wages” consists of not just cash payments however likewise a part of the cost of employer.
offered health care. Employee Retention Credit 2021 Qualified Health Plan Expenses
Employers can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.