Lets talk first about Employee Retention Credit And Tips :
Our group here what do these men doing everyone in this space is helping teach individuals about ERC and uh constantly offer a lovely breakfast and have people actually learn more about the program we should head to the space where we are able to display a few of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I suggest you know if you simply start to take a look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I indicate consider how many actual clients 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 verified 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 understand when you
get this you understand the check is gone for sure and that’s when they pay so they do not pay anything until they really receive the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they deposit it into their savings account and they can really rely on Wonder trust that the procedure has actually been ended up and the number of you believe you’ve 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 require 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 Wonderful here you’re at my YouTube channel we’re discussing something really essential today the worker retention credit which the majority of you have actually never become aware of I certainly had not become aware of it up until extremely recently and found out 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 workers in 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just contact your bank supervisor and state offer 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 ended up being yes the Ambassador and paid representative for this I love this program it’s going away soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies three 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 two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund okay go on sorry I simply need to ensure we got that point I mean that’s a huge difference a loan versus cash 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 original cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works since it seems like to me if it’s a if it’s employee retention credit that individual had to be a worker so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have actually 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 workers 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 proper so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my favorite part money how much can you get back per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s salary to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s wage to a maximum of 7 thousand per quarter how did that occur um they just changed 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 as much as five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a lot of money it is now there’s a caution here the PPP cash would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease 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 state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s substantial undoubtedly now the huge question is why does nobody learn about this due to the fact that look when I initially found out about this when I first met Josh you understand I’ve got lots of investments in lots of business I’m a major advocate for entrepreneurship in America and make many lots of investments in business owners of which many suffered through the pandemic when I first found out about this I called BS I do not believe it since I utilize 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 and that were well should have and we utilized them wisely to stay alive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my politician friends Guv Senators they didn’t understand about it I imply that’s how you know that’s how false information is that there’s no info out there then a bunch of people 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 know about the worker retention credit you understand what’s fascinating you’re discussing the banks Kevin due to the fact that 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 country 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 chaos due to the fact that remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you could not do ERC in the original 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 ever made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it previously 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 accounting professional’s never ever done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big huge business clients have worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose company is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is available to all companies despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the company has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings differs by whether a company had, on average, basically than.
100 staff members in 2019.
Business that specialize in ERC filing help normally offer knowledge and support to assist organizations navigate the complex process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit And Tips
Eligibility Evaluation: These companies will evaluate your service’s eligibility for the ERC based on factors such as your industry, profits, and operations. They can help figure out if you fulfill the requirements for the credit and recognize the maximum credit amount you can claim.
Documentation and Estimation: ERC filing services will assist in gathering the essential documents, such as payroll records and monetary declarations, to support your claim. They will also assist calculate the credit quantity based on qualified wages and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can evaluate your past payroll records and financials to recognize potential chances for retroactive credits. They can help you modify previous income tax return to declare these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the necessary types and paperwork on your behalf. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have progressed with time. These companies remain updated with the latest changes and ensure that your filings abide by the most current guidelines. They can also supply ongoing assistance if the IRS demands additional details or conducts an audit related to your ERC claim.
It is necessary to research study and vet any business using ERC filing support to ensure their reliability and knowledge. Try to find recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax specialists who offer ERC submitting assistance.
Remember that while these companies can provide valuable help, it’s always an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and make sure precise 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 goal of the ERC is to encourage services to keep and pay their employees during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit businesses, tax-exempt organizations, and particular governmental entities. To certify, employers must meet one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As discussed previously, for 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline 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 right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (as much as 70%) of qualified wages paid to employees, including specific health plan expenses. 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: At first, services that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. The very same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, enabling qualified companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for businesses to change prior-year income tax return and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Type 941. The excess can be refunded to the company if the credit exceeds the quantity of work taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have actually developed over time. The very best strategy is to talk to a tax expert or check out the official IRS website for the most detailed and current details relating to the ERC, consisting of any current legislative changes or updates.
To receive the ERC, a company must satisfy among the following requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and services that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC involves finishing the required kinds and including the credit on your work tax return (generally Type 941). The exact time it takes to process the credit can differ based upon numerous aspects, including the intricacy of your company and the workload of the internal revenue service. It’s suggested to talk to a tax professional for assistance particular to your circumstance.
There are numerous companies that can help with the procedure of declaring the ERC. Some widely known business that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based upon general understanding and might not show the most current updates or modifications to the ERC. It is essential to speak with a tax expert or go to the main IRS site for the most current and precise details regarding eligibility, declaring procedures, and readily available help.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on earnings paid to all employees whether they actually worked or not. Simply put, even if the.
staff members worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 staff members on average in 2019, then the credit is.
permitted just for earnings paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments however likewise a portion of the expense of company.
provided health care. Employee Retention Credit And Tips
Companies can be instantly reimbursed for the credit by reducing the amount of payroll taxes they.