Lets talk first about Employee Retention Credit Loan :
Our group here what do these people doing everyone in this room is helping teach people about ERC and uh constantly offer a stunning breakfast and have individuals really find out about the program we need to head to the room where we are able to display some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I imply you understand if you just start to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I imply consider how many actual customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified 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 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 get the money they do not pay bottom line Wonder trust anything till this letter is verified the check is on the method they transfer it into their savings account and they can genuinely trust Wonder trust that the procedure has been ended up and the number of you believe you’ve processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly 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 among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something actually important today the worker retention credit which most of you have actually never ever become aware of I definitely hadn’t heard of it up until really recently and learned a lot about it since this is probably the lowest cost of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply contact your bank manager and say provide me a loan it does not 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 spokesperson for this I enjoy this program it’s disappearing soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start 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 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund all right go on sorry I just have to make sure we got that point I indicate that’s a big difference a loan versus cash cash I like cash money that’s what we’re talking about 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 gorgeous tough check in the mail where you get actual cash from the IRS all right so let’s speak about how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that individual needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned a business but 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 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 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my preferred part cash 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 specific Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wanted 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 up to 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a lot of money it is now there’s a caveat 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 typically Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big obviously now the big 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 know I’ve got lots of investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it because I use the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them sensibly 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 good friends Guv Senators they didn’t learn about it I indicate that’s how you understand 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 since you took the PPP likewise not true so let’s ask Josh why does nobody know about the staff member retention credit you know what’s intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan process the federal government made it very clear that if you wanted 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 due to the fact that 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 due to the fact that 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 know how to do this not actually he or she’s never ever done it before 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 company your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this organization and bottom line my company Kevin has stayed in business because 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge business customers have dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other 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 up to $10,000 in salaries paid by an.
company whose organization is fully or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all companies no matter size consisting of 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 company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts exceed 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 wages paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes varies by whether a company had, usually, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing support generally offer competence and support to help organizations browse the intricate process of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Loan
Eligibility Assessment: These companies will evaluate your business’s eligibility for the ERC based on aspects such as your industry, income, and operations. They can assist figure out if you satisfy the requirements for the credit and determine the optimum credit amount you can declare.
Documents and Estimation: ERC filing services will assist in gathering the required documents, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based on qualified salaries and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can examine your past payroll records and financials to recognize potential chances for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the essential forms and documents in your place. This includes completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have developed with time. These companies remain updated with the current changes and guarantee that your filings comply with the most current guidelines. They can also offer continuous support if the IRS demands extra details or carries out an audit related to your ERC claim.
It is essential to research and vet any company providing ERC filing help to ensure their reliability and proficiency. Search for established companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax experts who offer ERC filing support.
Keep in mind that while these business can offer important support, it’s constantly an excellent concept 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 procedures. The objective of the ERC is to encourage businesses to maintain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, employers need to fulfill one of two criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. As discussed previously, for 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Amount: 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 (up to 70%) of certified wages paid to staff members, consisting of specific health insurance expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. Nevertheless, the exact same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, enabling qualified companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Kind 941. The excess can be refunded to the company if the credit exceeds the amount of work taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have developed over time. The very best strategy is to seek advice from a tax professional or visit the main IRS website for the most comprehensive and current information regarding the ERC, consisting of any recent legislative changes or updates.
To qualify for the ERC, an organization needs to satisfy one of the following requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a significant decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For example, federal government entities and businesses that got a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC includes finishing the needed forms and including the credit on your employment income tax return (usually Form 941). The exact time it takes to process the credit can vary based on several factors, consisting of the intricacy of your company and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for guidance specific to your scenario.
There are a number of companies that can help with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some widely known business that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these business straight to inquire about their services and costs.
Please keep in mind that the information provided here is based upon general understanding and might not reflect the most current updates or modifications to the ERC. It’s important to consult with a tax professional or check out the official IRS website for the most precise and updated info concerning eligibility, declaring treatments, and available help.
Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on earnings paid to all workers whether they in fact worked or not. To put it simply, 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 employees on average in 2019, then the credit is.
enabled just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just cash payments but also a portion of the expense of company.
offered healthcare. Employee Retention Credit Loan
Employers can be instantly compensated for the credit by lowering the amount of payroll taxes they.