Lets talk first about Employee Retention Credit Biden :
Our group here what do these men doing everyone in this space is assisting teach people about ERC and uh always provide a gorgeous breakfast and have individuals actually discover the program we need to head to the space where we are able to show a few 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 literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the method 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 imply it’s just I mean consider the number of 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 verified and the check is on the mail in the mail from the internal revenue service 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 don’t pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they deposit it into their savings account and they can genuinely rely on Wonder trust that the process has actually been ended up and how many you think you have actually processed because you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing and that’s what you require you require 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 discussing something really important today the worker retention credit which the majority of you have never heard of I definitely had not heard of it until really just recently and found out a lot about it because this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Ideas 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 phone your bank supervisor and state provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell 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 learn everything about it let’s talk employee 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 offered organizations 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 distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash money payroll tax refund fine go on sorry I just need to ensure we got that point I mean that’s a huge difference a loan versus cash cash I like cash cash that’s what we’re discussing alright 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 gorgeous difficult check in the mail where you get actual money from the IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s worker retention credit that individual needed to be an employee so I’m going to make the Presumption this cash 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 a business but it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 workers 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 need to be on payroll for the very first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part money just how much can you return per employee 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 an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to an optimum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because 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 up to 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would have to be decreased 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 typically Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment in New York 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 substantial undoubtedly now the big question is why does no one learn about this since appearance when I first found out about this when I first satisfied Josh you understand I’ve got great deals of investments in lots of companies I’m a major supporter for entrepreneurship in America and make many lots of financial investments in business owners of which numerous suffered through the pandemic when I initially 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 very easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we used them wisely to stay alive throughout the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician good friends Governor Senators they didn’t know about it I suggest that’s how you know that’s how misinformation is that there’s no details out there then a lot of people informed 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 nobody understand about the staff member retention credit you understand what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very 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 procedure process that’s all um and here there was turmoil since remember in the initial cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever 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 a few of them are doing it as a payroll company your accountant no your accountant’s never ever done this prior to unless you have an account that entered into this company and bottom line my company Kevin has actually been in business considering that 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 great deal of our big huge corporate clients have actually dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep employees 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 company is totally or partly suspended.
decline by more than 50%.
1. The credit is available to all companies despite size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the similar quarter in 2019. When the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages differs by whether an employer had, on average, more or less than.
100 employees in 2019.
Companies that concentrate on ERC filing support normally provide expertise and support to help services navigate the complicated procedure of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Biden
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based on factors such as your market, profits, and operations. If you fulfill the requirements for the credit and determine the optimum credit amount you can claim, they can assist identify.
Documentation and Calculation: ERC filing services will assist in collecting the needed documentation, such as payroll records and financial statements, to support your claim. They will also assist determine the credit amount based upon qualified wages and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can examine your past payroll records and financials to determine prospective chances for retroactive credits. They can assist you amend previous income tax return to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the required kinds and documents on your behalf. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have progressed in time. These business remain upgraded with the latest changes and make sure that your filings adhere to the most current guidelines. They can also provide continuous assistance if the internal revenue service demands additional information or carries out an audit related to your ERC claim.
It is necessary to research study and veterinarian any business providing ERC filing assistance to ensure their reliability and know-how. Look for established companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax specialists who offer ERC filing assistance.
Bear in mind that while these companies can supply important help, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure accurate 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 goal of the ERC is to motivate organizations to keep and pay their workers throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, companies should fulfill one of two requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As mentioned previously, for 2021, a considerable decline is specified 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% 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 (up to 70%) of qualified wages paid to staff members, consisting of certain health plan expenditures. 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, organizations that got an Income Security 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 received a PPP loan. Nevertheless, the same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, allowing eligible companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides a chance for services to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment tax returns, normally Type 941. The excess can be reimbursed to the employer if the credit goes beyond the quantity of work taxes owed.
It is necessary to note 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 main internal revenue service site for the most up-to-date and detailed information relating to the ERC, including any recent legal 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 considerable decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and organizations that received a PPP loan might have restrictions on claiming the credit.
The process for declaring the ERC includes finishing the required types and including the credit on your work income tax return (usually Type 941). The exact time it requires to process the credit can vary based on numerous elements, including the complexity of your company and the workload of the internal revenue service. It’s recommended to talk to a tax professional for guidance specific to your scenario.
There are a number of companies that can aid with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and contact these companies directly to ask about their charges and services.
Please keep in mind that the details provided here is based on general understanding and may not show the most recent updates or modifications to the ERC. It is very important to speak with a tax professional or check out the official IRS site for the most precise and updated details regarding eligibility, claiming treatments, and available support.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on earnings paid to all employees whether they in fact worked or not. Simply put, even if the.
workers worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply money payments but likewise a portion of the expense of employer.
offered health care. Employee Retention Credit Biden
Employers can be right away compensated for the credit by decreasing the amount of payroll taxes they.