Lets talk first about Employee Retention Credit Montana :
Our group here what do these men doing everyone in this room is assisting teach people about ERC and uh always provide a gorgeous breakfast and have people truly learn more about the program we need to head to the space 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 hundreds of countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I imply you know if you just start to look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I indicate consider the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you have the ability to track it you understand when you
get this you know the check is opted for sure and that’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 until 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 considering that you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly 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 among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re speaking about something truly important today the staff member retention credit which most of you have never heard of I definitely had not become aware of it up until really recently and learned a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I have actually got the expert 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 hard this isn’t like PPP we just contact your bank manager and say offer 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 have actually become yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used organizations three chances 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money money payroll tax refund all right go on sorry I just need to make sure we got that point I mean that’s a huge distinction a loan versus money money I like cash money that’s what we’re talking 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 original cares Act is the ERC and yes Kevin it is a beautiful hard check in the mail where you get actual cash from the internal revenue service 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 needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have owned a company however it’s based on you having W-2 workers in America not 10.99. so 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 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 walk us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be exact 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 skyrocketed to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that happen um they just 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 five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a lot of cash it is now there’s a caveat here the PPP cash would need to be decreased 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 typically Kevin is if you took PPP money someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big undoubtedly now the huge question is why does nobody learn about this because look when I first heard about this when I first fulfilled Josh you know I have actually got lots of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make many many 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 think 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 deserved and we utilized them wisely to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even called to my politician pals Governor Senators they didn’t know about it I mean that’s how you understand that’s how false information is that there’s no details out there then a bunch of people informed me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one learn about the employee retention credit you understand what’s intriguing you’re discussing the banks Kevin because in the PPP loan procedure the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process that’s all um and here there was chaos because keep in mind in the original cares act you could not do both programs so if you had done PPP you could not do ERC in the original program and when they changed 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 ever made it clear to any person about how to.
do this does your CFO understand how to do this not truly she or he’s never done it previously 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 business your accountant no your accountant’s never ever done this prior to unless you have an account that entered into this company and bottom line my firm Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a great deal of our huge huge business clients have worked with bottom line to recuperate other government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
company whose company is fully or partially 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 including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. When the.
company’s gross receipts exceed 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 earnings paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether an employer had, usually, basically than.
100 workers in 2019.
Business that concentrate on ERC filing help generally offer competence and support to help services browse the complex process of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Montana
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. They can help determine if you meet the requirements for the credit and identify the optimum credit quantity you can claim.
Documents and Estimation: ERC filing services will help in collecting the essential paperwork, such as payroll records and financial statements, to support your claim. They will also help calculate the credit quantity based upon eligible incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can review your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you change prior income tax return to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required types and paperwork on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have progressed with time. These business stay upgraded with the current changes and ensure that your filings abide by the most present guidelines. They can likewise provide continuous support if the internal revenue service requests additional details or carries out an audit related to your ERC claim.
It is essential to research study and vet any business using ERC filing help to ensure their reliability and expertise. Try to find recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who provide ERC filing assistance.
Remember that while these business can offer valuable support, it’s always an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to motivate businesses to keep and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit organizations, tax-exempt organizations, and specific governmental entities. To qualify, employers should fulfill one of two criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As discussed previously, for 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
Credit Quantity: 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 (up to 70%) of qualified incomes paid to workers, consisting of specific health plan costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. Nevertheless, the exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, allowing eligible companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to modify prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, normally Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the company.
It is very important to keep in mind that the ERC provisions and eligibility criteria have developed with time. The very best course of action is to talk to a tax professional or go to the main internal revenue service website for the most in-depth and up-to-date info regarding the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, an organization needs to fulfill among the following criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross invoices. For 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For instance, government entities and companies that got a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC involves finishing the required types and including the credit on your employment tax return (usually Type 941). The exact time it takes to process the credit can vary based upon a number of factors, including the complexity of your business and the work of the IRS. It’s suggested to seek advice from a tax professional for guidance particular to your situation.
There are several companies that can assist with the procedure of declaring the ERC. Some well-known business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based upon general knowledge and might not reflect the most current updates or changes to the ERC. It’s important to speak with a tax professional or go to the official internal revenue service website for the most current and accurate information regarding eligibility, declaring procedures, and readily available assistance.
Less than 100. If the company had 100 or less employees on average in 2019, then the credit is based.
on earnings paid to all employees whether they really worked or not. In other words, even if the.
staff members worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
enabled just for wages paid to workers who did not work during the calendar quarter.
In both cases, “salaries” includes not simply money payments however also a part of the cost of employer.
offered health care. Employee Retention Credit Montana
Employers can be right away compensated for the credit by lowering the quantity of payroll taxes they.