Lets talk first about Employee Retention Credit Health Plan Expenses :
Our team here what do these people doing everybody in this space is assisting teach people about ERC and uh constantly provide a lovely breakfast and have people actually find out 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 want to see that what is this this is uh numerous millions of dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I suggest you understand if you just begin to take a 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 simply I mean think of how many real customers that went through the program yeah this is the very end this is the party 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’re able to track it you know when you
get this you know the check is chosen sure and that’s when they pay so they do not pay anything till they actually receive the money they don’t pay bottom line Wonder trust anything till this letter is validated the check is on the way they transfer it into their bank account and they can truly rely on Wonder trust that the procedure has actually been finished and the number of you think you have actually processed given that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you require you need 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 Terrific here you’re at my YouTube channel we’re speaking about something really crucial today the worker retention credit which most of you have never heard of I definitely had not heard of it till really just recently and learned a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the expert 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 difficult this isn’t like PPP we just contact your bank supervisor and say give me a loan it does not 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’ve become yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I simply need to make sure we got that point I mean that’s a big difference a loan versus money money I like cash money that’s what we’re discussing okay 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 lovely tough check in the mail where you get actual cash from the IRS all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that person had 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 shareholders it’s for staff members right you needed to have owned an organization 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 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 proper so there were 6 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 period now let’s talk my preferred part money how much can you get back per employee that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to a maximum of seven thousand per quarter how did that occur um they just altered 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 five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop 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 because that’s a lot of cash 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 lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere 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 money you would still get a million dollar in the mail from the internal revenue service so it’s huge undoubtedly now the huge question is why does nobody learn about this since appearance when I initially found out about this when I initially met Josh you know I have actually got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in business owners of which many suffered through the pandemic when I first heard about this I called BS I don’t believe it because 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 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 however when I dug around I even contacted us to my politician buddies Governor Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no details out there then a lot of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one understand about the worker retention credit you understand what’s fascinating you’re speaking about the banks Kevin because in the PPP loan process 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 big banks in our country and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was mayhem since remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they altered 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 ever made it clear to anybody about how to.
do this does your CFO know how to do this not truly 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 done this prior to unless you have an account that went into this organization and bottom line my firm Kevin has actually been in business because 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 lot of our big huge business customers have actually dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment tax work opportunity 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 motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
employer whose service is completely or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all employers regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages differs by whether a company had, usually, basically than.
100 employees in 2019.
Business that specialize in ERC filing assistance usually offer competence and support to assist businesses browse the complex process of declaring the credit. They can provide different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Health Plan Expenses
Eligibility Evaluation: These companies will assess your business’s eligibility for the ERC based upon aspects such as your industry, income, and operations. They can help identify 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 collecting the essential documentation, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit amount based upon eligible earnings and other certifying costs.
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 identify prospective opportunities for retroactive credits. They can assist you modify previous income tax return to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and submit the required forms and documents on your behalf. This includes completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have evolved over time. These business stay upgraded with the current changes and guarantee that your filings comply with the most current standards. If the Internal revenue service requests additional details or performs an audit associated to your ERC claim, they can also offer continuous support.
It is essential to research and vet any company providing ERC filing support to guarantee their trustworthiness and competence. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax professionals who offer ERC submitting assistance.
Keep in mind that while these business can supply important help, it’s always a great idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate companies to maintain and pay their workers during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, companies should fulfill one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As discussed previously, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of certified wages paid to employees, consisting of particular health insurance expenditures. 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 got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. Nevertheless, the very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, enabling eligible employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for companies to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, normally Kind 941. The excess can be reimbursed to the company if the credit exceeds the quantity of work taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility criteria have evolved with time. The very best course of action is to speak with a tax professional or visit the official IRS website for the most updated and detailed information concerning the ERC, including any recent legal changes or updates.
To get approved for the ERC, a business should meet among the following criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. 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 significant decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and companies that got a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC involves finishing the necessary forms and including the credit on your employment income tax return (normally Type 941). The exact time it takes to process the credit can vary based upon several elements, consisting of the complexity of your service and the workload of the IRS. It’s advised to speak with a tax professional for assistance particular to your situation.
There are a number of business that can assist with the process of declaring the ERC. Some popular business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based upon general understanding and might not reflect the most recent updates or changes to the ERC. It is necessary to talk to a tax professional or go to the main IRS website for the most current and precise information regarding eligibility, claiming treatments, and offered assistance.
Less than 100. If the company had 100 or fewer staff members typically in 2019, then the credit is based.
on incomes paid to all workers whether they really 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. The credit is if the employer had more than 100 staff members on average in 2019.
allowed just for earnings paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just cash payments but also a part of the cost of employer.
provided healthcare. Employee Retention Credit Health Plan Expenses
Employers can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.