Lets talk first about Employee Retention Credit K-1 :
Our team here what do these men doing everybody in this room is assisting teach people about ERC and uh always offer a beautiful breakfast and have individuals actually learn more about the program we must head to the space where we have the ability to display some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I imply you know if you just begin to take a look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I imply consider 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 validated the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
receive this you know the check is opted for sure which’s when they pay so they don’t pay anything until they in fact get the cash they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they transfer it into their savings account and they can genuinely trust Wonder trust that the procedure has actually been ended up and the number of you think you have actually processed considering 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 which’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 Terrific here you’re at my YouTube channel we’re talking about something truly essential today the employee retention credit which most of you have never ever become aware of I definitely hadn’t become aware of it until really just recently and learned a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have workers between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just call your bank manager and state give me a loan it does not work there’s not a loan it’s an application and Josh is going to tell us all about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I love this program it’s disappearing very soon you got to find out everything 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 came up with the cares Act and the cares act provided companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone 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.
correct the cash cash payroll tax refund okay go on sorry I just need to ensure we got that point I indicate that’s a huge distinction a loan versus cash money I like cash money 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 beautiful tough check in the mail where you get actual cash from the IRS all right so let’s speak about how it works because it sounds like to me if it’s a if it’s worker retention credit that individual had to be an employee so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have owned a company but it’s based on you having W-2 staff members 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 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 2 3 and 4 of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus because the turmoil of the pandemic so they wanted 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 five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caution here the PPP money would have to be decreased 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 cash someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big undoubtedly now the big question is why does no one learn about this since look when I first heard about this when I first satisfied Josh you understand I’ve got lots of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of 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 extremely 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 survive during the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even called to my political leader friends Guv Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one learn about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin because in the PPP loan procedure 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 simply procedure procedure that’s all um and here there was chaos because 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 since 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 truly she or he’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this before unless you have an account that went into this service and bottom line my company Kevin has stayed in business because 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate customers have dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, employer whose organization is completely or partly suspended.
decrease by more than 50%.
1. The credit is offered to all employers no matter size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries differs by whether an employer had, on average, more or less than.
100 staff members in 2019.
Companies that focus on ERC filing assistance generally offer know-how and assistance to assist companies browse the complicated process of declaring the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit K-1
Eligibility Evaluation: These business will assess your business’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. If you meet the requirements for the credit and recognize the optimum credit amount you can claim, they can assist identify.
Documentation and Calculation: ERC filing services will assist in collecting the required documentation, such as payroll records and financial declarations, to support your claim. They will likewise help compute the credit quantity based upon eligible salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can review your previous payroll records and financials to identify possible chances for retroactive credits. They can assist you amend previous tax returns to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the required types and documents on your behalf. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have progressed in time. These companies stay upgraded with the most recent modifications and ensure that your filings abide by the most existing guidelines. If the IRS demands extra info or performs an audit associated to your ERC claim, they can also offer ongoing support.
It is essential to research and vet any company offering ERC filing assistance to guarantee their trustworthiness and competence. Look for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax specialists who provide ERC filing support.
Keep in mind that while these companies can provide valuable support, it’s constantly a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified choices and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to motivate businesses to retain and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To certify, employers should satisfy one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As discussed earlier, for 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately 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 portion (as much as 70%) of certified wages paid to employees, including specific health insurance 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: Initially, businesses that got an Income 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 got a PPP loan. Nevertheless, the very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting eligible companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies a chance for businesses to amend prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, generally Kind 941. The excess can be refunded to the company if the credit surpasses the quantity of work taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have evolved gradually. The best course of action is to seek advice from a tax expert or check out the main internal revenue service site for the most in-depth and current info regarding the ERC, including any current legal modifications or updates.
To get approved for the ERC, a service must meet among the following criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and services that got a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC involves finishing the required types and consisting of the credit on your work tax return (generally Form 941). The exact time it requires to process the credit can vary based on a number of factors, including the intricacy of your business and the work of the IRS. It’s recommended to consult with a tax expert for assistance specific to your scenario.
There are several business that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some well-known business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business straight to ask about their services and fees.
Please keep in mind that the information supplied 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 internal revenue service site for the most precise and updated info relating to eligibility, claiming treatments, and offered assistance.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on wages paid to all staff members whether they actually worked or not. To put it simply, even if the.
staff members worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
enabled only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not just money payments but likewise a portion of the expense of employer.
offered health care. Employee Retention Credit K-1
Employers can be right away repaid for the credit by minimizing the quantity of payroll taxes they.