Lets talk first about Employee Retention Credit Number Of Employees :
Our group here what do these men doing everybody in this room is helping teach people about ERC and uh constantly supply a gorgeous breakfast and have individuals actually learn more about the program we ought to head to the room where we have the ability to show a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin numerous 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 begin 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 imply it’s simply I mean think about how many actual 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 internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
receive this you know the check is chosen sure which’s when they pay so they don’t pay anything till they actually receive the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they deposit it into their checking account and they can truly trust Wonder trust that the procedure has actually been finished and how many you believe you have actually 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 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 Terrific here you’re at my YouTube channel we’re speaking about something really crucial today the employee retention credit which the majority of you have never become aware of I certainly had not become aware of it up until really just recently and found out a lot about it because this is most likely the lowest expense of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call up 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 inform us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away 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 developed the cares Act and the cares act provided organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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 simply need to ensure we got that point I mean that’s a big difference a loan versus money cash I like cash money that’s what we’re discussing 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 gorgeous difficult check in the mail where you get real money from the internal revenue service 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 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 needed to have actually owned a company but it’s based upon you having W-2 workers in America not 10.99. 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 have to be on payroll for the first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part cash how much can you return per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the chaos of the pandemic so they wished 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 approximately 5 thousand Max and then what takes place 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 six thousand dollars per staff member that is because that’s a great deal of money 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 two you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten 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 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 obviously now the huge concern is why does no one learn about this since look when I first found out about this when I initially met Josh you know I have actually got great deals of financial investments in lots of companies I’m a significant supporter for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I don’t think it due to the fact that I use 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 been worthy of and we used them carefully to stay alive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my politician buddies Guv Senators they didn’t learn about it I imply that’s how you know that’s how false information is that there’s no info out there then a lot of individuals informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one learn about the worker retention credit you know what’s fascinating you’re discussing the banks Kevin because in the PPP loan process 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 simply process process that’s all um and here there was chaos since remember in the initial cares act you might refrain from doing both programs so if you had done PPP you could 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 government never ever made it clear to anybody about how to.
do this does your CFO know 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 business yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this before unless you have an account that went into this organization and bottom line my company Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
employer whose service is completely or partially 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 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’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 below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Companies that focus on ERC filing help usually provide competence and assistance to help services navigate the complex process of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Number Of Employees
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based on elements such as your industry, profits, and operations. If you fulfill the requirements for the credit and recognize the optimum credit quantity you can declare, they can help figure out.
Documentation and Calculation: ERC filing services will assist in collecting the required paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help compute the credit quantity based on qualified salaries and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these business can examine your previous payroll records and financials to determine potential chances for retroactive credits. They can help you amend prior income tax return to claim these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the necessary forms and paperwork on your behalf. This consists of finishing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have actually evolved gradually. These companies remain upgraded with the most recent modifications and make sure that your filings adhere to the most existing standards. They can also provide continuous assistance if the internal revenue service requests extra information or performs an audit related to your ERC claim.
It is very important to research and vet any company providing ERC filing support to guarantee their trustworthiness and competence. Look for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax experts who offer ERC filing assistance.
Keep in mind that while these companies can offer valuable assistance, it’s always a great concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions 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 measures. The goal of the ERC is to motivate organizations to keep and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit companies, tax-exempt organizations, and certain governmental entities. To qualify, companies should fulfill one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As pointed out earlier, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts 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 amounts to a percentage (up to 70%) of qualified incomes paid to staff members, including particular health insurance costs. 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, services that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. The very same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, permitting eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to amend prior-year income tax return and get refunds.
Claiming 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 employer if the credit goes beyond the quantity of employment taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually progressed with time. The very best course of action is to speak with a tax expert or visit the main internal revenue service site for the most updated and detailed info relating to the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, a business should meet one of the following requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and services that received a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC includes finishing the necessary forms and consisting of the credit on your work income tax return (generally Kind 941). The exact time it takes to process the credit can vary based upon numerous factors, including the intricacy of your organization and the work of the IRS. It’s recommended to seek advice from a tax professional for assistance specific to your scenario.
There are a number of business that can aid with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some widely known companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these companies directly to ask about their services and fees.
Please note that the info supplied here is based on general knowledge and might not show the most recent updates or changes to the ERC. It is necessary to seek advice from a tax expert or check out the official IRS site for the most precise and updated info regarding eligibility, declaring treatments, and available assistance.
Less than 100. If the employer had 100 or fewer workers usually in 2019, then the credit is based.
on wages paid to all staff members whether they in fact worked or not. Simply put, even if the.
workers worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
permitted just for incomes paid to employees who did not work during the calendar quarter.
In both cases, “salaries” includes not simply money payments but also a part of the expense of company.
provided health care. Employee Retention Credit Number Of Employees
Employers can be right away reimbursed for the credit by decreasing the amount of payroll taxes they.