Lets talk first about Employee Retention Credit Maine :
Our team here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh always supply a lovely breakfast and have people actually learn about the program we should head to the space where we are able to display 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 numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I suggest you know if you just start to 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 suggest think about how many actual clients 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 understand when you
receive this you know the check is chosen sure and that’s when they pay so they do not pay anything up until they really get the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their bank account and they can genuinely trust Wonder trust that the process has been completed and how many you think you’ve processed given that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need 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 Wonderful here you’re at my YouTube channel we’re discussing something truly crucial today the employee retention credit which the majority of you have never become aware of I definitely hadn’t heard of it till very just recently and found out a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have employees in between five and five hundred so I’ve got the professional 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 challenging this isn’t like PPP we just contact 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 us all about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing very soon you got to find out everything 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 created the cares Act and the cares act provided companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone 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 huge distinction a loan versus money cash I like cash cash that’s what we’re speaking about 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 stunning hard check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works because 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 Presumption this cash is not for the owner not for people on the cap table not for shareholders it’s for workers right you had to have owned a business but it’s based upon you having W-2 employees 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 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 three and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my preferred part cash how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to a maximum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because 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 up to 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a lot of cash it is now there’s a caveat here the PPP money would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 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 staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the huge concern is why does no one learn about this since look when I initially became aware of this when I initially met Josh you understand I’ve got lots of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t believe it since I use 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 and that were well deserved and we used them sensibly to stay alive during the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even contacted us to my political leader buddies Guv Senators they didn’t understand about it I imply that’s how you understand that’s how false information is that there’s no details out there then a lot of people told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one understand about the employee retention credit you understand what’s interesting you’re talking about the banks Kevin since in the PPP loan procedure 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 just procedure process that’s all um and here there was turmoil since keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original 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 government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not truly he or she’s never done it before 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 accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this business and bottom line my company Kevin has actually stayed in business considering that 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have actually dealt with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax joblessness tax work chance 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 encourage.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
employer whose service is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed 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.
Computation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes differs by whether an employer had, on average, basically than.
100 workers in 2019.
Business that concentrate on ERC filing help normally supply know-how and support to assist organizations browse the complex procedure of claiming the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Maine
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based on aspects such as your market, earnings, and operations. They can help determine if you satisfy the requirements for the credit and recognize the optimum credit amount you can claim.
Documents and Estimation: ERC filing services will assist in collecting the required documents, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit quantity based upon eligible incomes and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these companies can evaluate your past payroll records and financials to identify prospective chances for retroactive credits. They can help you change previous income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the essential kinds and documentation in your place. This includes finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have developed with time. These business remain upgraded with the current changes and guarantee that your filings comply with the most present standards. They can likewise supply continuous support if the IRS demands additional info or performs an audit related to your ERC claim.
It is necessary to research and veterinarian any business offering ERC filing help to guarantee their reliability and proficiency. Try to find established firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who offer ERC filing support.
Bear in mind that while these business can supply valuable help, it’s always a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and ensure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage organizations to keep and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit services, tax-exempt organizations, and particular governmental entities. To qualify, employers should satisfy one of two requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a substantial decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined 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 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 (approximately 70%) of certified incomes paid to staff members, consisting of 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: At first, companies that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they got a PPP loan. The exact same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, allowing qualified employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for businesses to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, usually Form 941. The excess can be refunded 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 requirements have evolved in time. The best course of action is to speak with a tax professional or check out the main IRS website for the most current and in-depth info concerning the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company needs to satisfy among the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and services that got a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC involves completing the needed types and consisting of the credit on your employment income tax return (usually Type 941). The exact time it takes 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 suggested to consult with a tax expert for assistance specific to your scenario.
There are a number of business that can assist with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some popular companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these business directly to ask about their services and costs.
Please note that the information provided here is based upon basic understanding and might not reflect the most recent updates or changes to the ERC. It is very important to speak with a tax professional or check out the main IRS website for the most precise and updated info concerning eligibility, claiming treatments, and offered support.
Less than 100. If the employer had 100 or less workers typically in 2019, then the credit is based.
on incomes paid to all staff members whether they really worked or not. Simply put, even if the.
employees worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members on average in 2019, then the credit is.
allowed just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply money payments however likewise a portion of the cost of employer.
provided healthcare. Employee Retention Credit Maine
Employers can be instantly compensated for the credit by decreasing the amount of payroll taxes they.