Get Employee Retention Credit Abuse 2023

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Our team here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh always supply a lovely breakfast and have individuals actually learn about the program we ought to head to the room where we are able to show a few of the checks that we are getting for companies and I wish 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 customers confirming that the check is on the way I mean you understand if you just begin to look at some 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 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 validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you have the ability to track it you know when you

get this you know the check is opted for sure and that’s when they pay so they do not pay anything till they really get the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their savings account and they can really trust Wonder trust that the procedure has been ended up and how many you believe you’ve processed given that you began this we’re about 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 require professionals 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 really crucial today the staff member retention credit which the majority of you have never become aware of I definitely hadn’t heard of it until very just recently and learned a lot about it because this is most likely the lowest expense of capital for any small business anywhere

anytime if you have employees in between five 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 Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult 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 inform us all about it and how to get it and why I have actually become 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 simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone 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 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 money that’s what we’re speaking 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 stunning tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s worker 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 individuals on the cap table not for investors it’s for workers right you had to have owned a company however it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 staff members 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 have to be on payroll for the first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my preferred part money just how much can you return per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s income to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.

2021 versus due to the fact that 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 as much as 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a great deal of cash it is now there’s a caveat here the PPP cash would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around ten 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 employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge undoubtedly now the huge concern is why does nobody know about this since look when I initially became aware of this when I first fulfilled Josh you understand I’ve got great deals of financial investments in great deals of business I’m a major supporter for entrepreneurship in America and make lots of many investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I don’t believe it since 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 which were well should have and we used them wisely to stay alive during the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even called to my political leader good friends Governor Senators they didn’t learn about it I imply that’s how you know that’s how misinformation is that there’s no info out there then a lot of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one know about the staff member retention credit you know 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 desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure procedure that’s all um and here there was chaos due to the fact that remember in the original cares act you could 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 not doing ERC due to the fact that 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 know 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 don’t 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 ever done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has been 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 lot of our huge huge business customers have worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.

The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose company is completely or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Schedule.
1. The credit is offered to all companies no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is completely or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.

Estimation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying salaries varies by whether an employer had, typically, basically than.
100 staff members in 2019.

Companies that specialize in ERC filing help generally offer know-how and support to assist organizations navigate the intricate procedure of claiming the credit. They can use different services, including:.

 

How is the employee retention credit calculated? Employee Retention Credit Abuse

Eligibility Evaluation: These business will examine your company’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. They can help figure out if you fulfill the requirements for the credit and identify the optimum credit amount you can claim.
Documentation and Calculation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will likewise help compute the credit quantity based upon qualified salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to identify possible chances for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and submit the necessary types and documents in your place. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have developed with time. These business remain updated with the current modifications and ensure that your filings adhere to the most existing standards. They can also provide continuous support if the internal revenue service demands additional details or performs an audit related to your ERC claim.
It’s important to research and veterinarian any business providing ERC filing support to ensure their trustworthiness and know-how. Look for established companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who offer ERC submitting support.

Keep in mind that while these business can supply important help, it’s always a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and make sure precise filings.

The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage services to retain and pay their workers during the pandemic, even if their operations have been impacted.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is offered to qualified companies, including for-profit businesses, tax-exempt companies, and specific governmental entities. To certify, companies should meet one of two requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As mentioned earlier, for 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of certified incomes paid to staff members, consisting of specific health insurance expenses. The optimum credit per employee 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 Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they received a PPP loan. The exact same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, allowing eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies a chance for companies to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, usually Form 941. If the credit surpasses the quantity of work taxes owed, the excess can be reimbursed to the company.
It is necessary to note that the ERC arrangements and eligibility requirements have evolved over time. The very best strategy is to talk to a tax professional or check out the official IRS site for the most detailed and up-to-date info concerning the ERC, consisting of any recent legislative modifications or updates.

To get approved for the ERC, a business should fulfill among the following requirements:.

Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. Federal government entities and organizations that received a PPP loan may have constraints on declaring the credit.

The procedure for declaring the ERC involves finishing the needed forms and including the credit on your employment income tax return (generally Type 941). The exact time it requires to process the credit can vary based upon numerous elements, consisting of the complexity of your service and the work of the IRS. It’s suggested to seek advice from a tax expert for assistance specific to your circumstance.

There are several companies that can assist with the procedure of declaring the ERC. Some popular business that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.

Please keep in mind that the info provided here is based upon basic understanding and may not show the most recent updates or changes to the ERC. It’s important to consult with a tax professional or visit the official IRS site for the most accurate and updated info regarding eligibility, declaring procedures, and available assistance.

Less than 100. If the employer had 100 or fewer workers typically in 2019, then the credit is based.
on wages paid to all staff members whether they in fact worked or not. To put it simply, 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 workers on average in 2019, then the credit is.
allowed just for salaries paid to employees 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.
offered healthcare. Employee Retention Credit Abuse
Payment.

Employers can be right away compensated for the credit by lowering the quantity of payroll taxes they.