Lets talk first about Employee Retention Credit Last Day To File :
Our group here what do these men doing everybody in this room is assisting teach individuals about ERC and uh constantly offer a gorgeous breakfast and have people really find out about the program we ought to head to the room where we have the ability to display some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I indicate you understand if you simply start to 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 just I suggest think about how many real clients 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 verified 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
get this you understand the check is chosen sure which’s when they pay so they do not pay anything till they actually get the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they deposit it into their checking account and they can truly trust Wonder trust that the process has actually been finished and how many you think you’ve processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing which’s what you need you require specialists 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 talking about something actually crucial today the employee retention credit which the majority of you have actually never ever become aware of I definitely had not heard of it till very recently and found out a lot about it because this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have staff members between five 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 largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call your bank manager and state provide 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 ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to find out all about it let’s talk employee 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 organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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 have to ensure we got that point I imply that’s a huge difference a loan versus money cash I like money money that’s what we’re discussing all right 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 difficult check in the mail where you get actual cash from the internal revenue service 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 person needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have actually owned a service however it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 employees 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 very first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus since the turmoil of the pandemic so they wished to even get more to keep those staff members 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 then 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 worker that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be minimized 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 usually Kevin is if you took PPP money someplace around ten thousand dollars an individual 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 big clearly now the huge concern is why does no one understand about this since look when I first found out about this when I first satisfied Josh you understand I’ve got great deals of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make many many investments in entrepreneurs of which lots of suffered through the pandemic when I initially found out about this I called BS I don’t believe it due to the fact that 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 which were well deserved and we utilized them wisely to stay alive throughout the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my politician friends Guv Senators they didn’t know about it I indicate that’s how you understand that’s how false information is that there’s no info out there then a lot of individuals 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 nobody learn about the staff member retention credit you understand what’s fascinating you’re discussing the banks Kevin because 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 huge 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 just process procedure that’s all um and here there was chaos since remember in the original cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the original program and when they altered 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 made it clear to any person 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 do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never done this before unless you have an account that went into this business and bottom line my company Kevin has 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 lot of our big huge corporate clients have dealt with bottom line to recover other government programs we’ve done sales tax and use tax joblessness 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 created to motivate.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose service is completely or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is available to all employers despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the similar quarter in 2019. Once the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The definition of certifying wages varies by whether an employer had, typically, basically than.
100 workers in 2019.
Companies that specialize in ERC filing help normally provide competence and support to help services browse the intricate procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Last Day To File
Eligibility Evaluation: These companies will assess your business’s eligibility for the ERC based on factors such as your industry, revenue, and operations. If you satisfy the requirements for the credit and determine the optimum credit amount you can declare, they can assist determine.
Documents 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 assist determine the credit quantity based upon eligible salaries and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify potential opportunities for retroactive credits. They can assist you modify prior income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the essential forms and documents in your place. This includes completing Type 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have actually developed gradually. These companies stay upgraded with the latest modifications and guarantee that your filings adhere to the most existing standards. If the IRS demands extra information or carries out an audit associated to your ERC claim, they can likewise provide continuous support.
It is very important to research and veterinarian any business using ERC filing assistance to guarantee their reliability and competence. Look for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax specialists who use ERC submitting support.
Bear in mind that while these business can provide valuable help, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage companies to keep and pay their staff members during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To qualify, companies need to meet one of two criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As discussed earlier, for 2021, a considerable 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 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.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (as much as 70%) of certified earnings paid to workers, including particular health insurance costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that got an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got 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 been retroactively expanded and enhanced, allowing eligible companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, typically Kind 941. The excess can be reimbursed to the employer if the credit goes beyond the amount of employment taxes owed.
It is necessary to note that the ERC arrangements and eligibility requirements have actually evolved gradually. The best strategy is to talk to a tax expert or check out the main IRS website for the most detailed and current details relating to the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, a service needs to satisfy one of the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a significant 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% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, federal government entities and organizations that received a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC involves completing the necessary kinds and including the credit on your employment income tax return (typically Kind 941). The exact time it takes to process the credit can differ based on several aspects, consisting of the intricacy of your business and the work of the IRS. It’s advised to consult with a tax professional for guidance particular to your scenario.
There are several companies that can help with the process of claiming the ERC. Some widely known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based upon basic understanding and might not reflect the most recent updates or modifications to the ERC. It is very important to speak with a tax expert or check out the main internal revenue service website for the most updated and precise details regarding eligibility, declaring procedures, and available help.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on earnings paid to all staff members whether they actually worked or not. Simply put, even if the.
workers worked full-time and made money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members typically in 2019, then the credit is.
permitted just for earnings paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just money payments however likewise a portion of the cost of employer.
supplied healthcare. Employee Retention Credit Last Day To File
Employers can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.