Lets talk first about Employee Retention Credit Amended Return :
Our team here what do these people doing everybody in this space is helping teach individuals about ERC and uh constantly provide a gorgeous breakfast and have people actually discover 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 business and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I indicate you know if you simply begin to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I indicate think of the number of real customers 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 IRS heading to the consumer so that’s how you have the ability to track it you know when you
receive this you know the check is opted for sure which’s when they pay so they do not pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their checking account and they can genuinely rely on Wonder trust that the process has been completed and how many you believe you have actually processed given that you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you require you need experts 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 Fantastic here you’re at my YouTube channel we’re discussing something truly important today the worker retention credit which most of you have never heard of I certainly hadn’t heard of it till very recently and discovered a lot about it due to the fact that this is probably the lowest cost of capital for any small company anywhere
anytime if you have workers between 5 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 Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call up your bank supervisor and say provide 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 have actually become yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered companies three chances 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 two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash money payroll tax refund alright go on sorry I just have to ensure we got that point I mean that’s a big distinction a loan versus cash cash I like cash 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 gorgeous 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 because it seems like to me if it’s a if it’s employee retention credit that person had to be an employee 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 needed to have owned an organization however it’s based upon you having W-2 workers 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 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 6 quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my favorite part cash how much can you get back per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the employee’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the mayhem 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 approximately 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five 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 reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere 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 internal revenue service so it’s big obviously now the huge concern is why does no one know about this since appearance when I first became aware of this when I initially fulfilled Josh you understand I’ve got lots of investments in lots of business I’m a significant supporter for entrepreneurship in America and make lots of numerous financial investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I don’t think it since I use the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well should have and we utilized them sensibly to stay alive throughout the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my politician pals Governor Senators they didn’t learn about it I indicate that’s how you understand that’s how false information is that there’s no details out there then a lot of people told me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one learn about the employee retention credit you know what’s interesting you’re speaking about the banks Kevin due to the fact that in the PPP loan process the federal government made it really 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was mayhem since remember in the original cares act you could not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were refraining from doing ERC since 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 understand how to do this not truly he or she’s never 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 accountant no your accounting professional’s never ever done this before unless you have an account that went into this company and bottom line my company Kevin has actually been in business because 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge big corporate clients have actually worked with bottom line to recover other government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Since 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 despite size including tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is totally or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether a company had, on average, basically than.
100 workers in 2019.
Companies that focus on ERC filing support normally offer proficiency and assistance to help companies browse the complex process of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Amended Return
Eligibility Evaluation: These business will evaluate your organization’s eligibility for the ERC based upon factors such as your market, revenue, and operations. They can help figure out if you meet the requirements for the credit and determine the optimum credit quantity you can declare.
Paperwork and Computation: ERC filing services will help in collecting the essential documentation, such as payroll records and financial statements, to support your claim. They will likewise help calculate the credit quantity based upon eligible earnings and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you amend prior income tax return to declare these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the necessary kinds and documentation on your behalf. This consists of completing Form 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have developed in time. These companies remain upgraded with the latest changes and make sure that your filings adhere to the most present guidelines. They can also provide ongoing support if the internal revenue service requests extra info or carries out an audit related to your ERC claim.
It’s important to research and vet any business offering ERC filing assistance to guarantee their trustworthiness and know-how. Try to find established companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax professionals who use ERC submitting support.
Keep in mind that while these companies can supply valuable support, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to retain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit businesses, tax-exempt organizations, and specific governmental entities. To certify, employers should satisfy one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As discussed earlier, for 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly 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 earnings paid to employees, including particular health plan costs. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they received a PPP loan. The exact same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing qualified employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for businesses to modify prior-year tax returns and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be reimbursed to the company if the credit exceeds the quantity of employment taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility criteria have actually progressed in time. The very best course of action is to speak with a tax professional or check out the official IRS site for the most detailed and up-to-date details regarding the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a business should satisfy among the following criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, however there are some exceptions. For instance, government entities and services that received a PPP loan may have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the essential kinds and including the credit on your work income tax return (generally Form 941). The exact time it takes to process the credit can vary based upon numerous aspects, consisting of the complexity of your service and the work of the internal revenue service. It’s recommended to speak with a tax professional for guidance specific to your scenario.
There are a number of companies that can help with the process of declaring the ERC. Some well-known business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details supplied here is based on basic knowledge and might not show the most recent updates or modifications to the ERC. It is necessary to talk to a tax professional or check out the main internal revenue service website for the most updated and accurate information relating to eligibility, declaring procedures, and available support.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on earnings paid to all employees whether they in fact worked or not. To put it simply, even if the.
staff members worked full-time and made money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
allowed just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just cash payments but likewise a part of the cost of company.
offered healthcare. Employee Retention Credit Amended Return
Companies can be instantly repaid for the credit by reducing the amount of payroll taxes they.