Lets talk first about Employee Retention Credit Oklahoma :
Our group here what do these guys doing everyone in this room is assisting teach people about ERC and uh always offer a lovely breakfast and have individuals actually learn more about the program we should head to the space where we are able to show 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 numerous countless dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I indicate you know if you just start to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I suggest consider the number of actual customers 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 validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you have the ability to track it you know when you
receive this you understand the check is chosen sure which’s when they pay so they don’t pay anything till they really get the cash they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can genuinely trust Wonder trust that the process has actually been finished and how many you believe you’ve processed given that you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’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 Fantastic here you’re at my YouTube channel we’re speaking about something actually crucial today the staff member retention credit which most of you have never become aware of I definitely hadn’t heard of it until extremely just recently and learned a lot about it due to the fact that this is probably the lowest expense of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy 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 all of us about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I love this program it’s going away soon you got to find out all about it let’s talk worker 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 provided businesses three chances 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund all right go on sorry I just need to make sure we got that point I suggest that’s a huge distinction a loan versus cash money I like money 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works since it seems like to me if it’s a if it’s staff member retention credit that individual had to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have owned an organization however it’s based on you having W-2 workers 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 6 months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part cash just how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact 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 employee’s salary to a maximum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 6 thousand dollars per employee that is because that’s a lot of money it is now there’s a caveat here the PPP cash would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around 10 thousand dollars a person 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 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 nobody know about this because look when I initially heard about this when I first fulfilled Josh you understand I’ve got lots of financial investments in great deals of business I’m a major advocate for entrepreneurship in America and make many lots of investments in entrepreneurs of which lots of suffered through the pandemic when I initially found out about this I called BS I do not believe it since 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 been worthy of and we used them wisely to stay alive throughout the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even contacted us to my politician good friends Guv Senators they didn’t understand about it I mean that’s how you know that’s how false information is that there’s no information out there then a bunch 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 nobody understand about the staff member retention credit you understand what’s interesting you’re speaking about the banks Kevin because in the PPP loan process the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process procedure 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 because keep in mind in the original cares act you could not do both programs so if you had 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 because it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO understand how to do this not truly she or he’s never ever done it in the past do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll company your accountant 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 actually stayed in business given that 2009 and we have actually been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big big business clients have actually dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Because of COVID-19 or whose gross invoices, company whose company is completely or partially suspended.
decline by more than 50%.
1. The credit is available to all employers despite size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether a company had, on average, more or less than.
100 workers in 2019.
Companies that focus on ERC filing assistance normally supply knowledge and assistance to assist companies browse the complicated process of claiming the credit. They can use different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Oklahoma
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based upon elements such as your market, profits, and operations. If you satisfy the requirements for the credit and determine the maximum credit amount you can claim, they can assist determine.
Documents and Estimation: ERC filing services will help in collecting the required documents, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit amount based on eligible incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these business can evaluate your past payroll records and financials to determine possible opportunities for retroactive credits. They can help you amend previous income tax return to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the needed kinds and paperwork in your place. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually evolved gradually. These business remain updated with the latest changes and ensure that your filings abide by the most current standards. They can also supply continuous assistance if the IRS requests additional details or conducts an audit related to your ERC claim.
It’s important to research study and vet any business using ERC filing support to guarantee their reliability and knowledge. Try to find recognized firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax specialists who provide ERC filing support.
Keep in mind that while these business can provide valuable support, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to encourage organizations to keep and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit businesses, tax-exempt organizations, and particular governmental entities. To certify, employers must fulfill one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices 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 amounts to a percentage (up to 70%) of qualified earnings paid to workers, consisting of specific health insurance expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. However, the very same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit surpasses the amount of work taxes owed, the excess can be refunded to the company.
It is necessary to note that the ERC provisions and eligibility criteria have developed in time. The best strategy is to seek advice from a tax expert or check out the official IRS site for the most up-to-date and in-depth info concerning the ERC, consisting of any recent legislative modifications or updates.
To receive the ERC, a business must satisfy one of the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and companies that got a PPP loan may have constraints on claiming the credit.
The procedure for declaring the ERC includes finishing the needed forms and including the credit on your work tax return (generally Kind 941). The exact time it takes to process the credit can vary based on numerous elements, including the intricacy of your business and the work of the IRS. It’s suggested to speak with a tax professional for assistance specific to your circumstance.
There are numerous companies that can aid with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business directly to inquire about their services and charges.
Please note that the details offered here is based upon basic knowledge and might not reflect the most recent updates or changes to the ERC. It is very important to consult with a tax expert or go to the main IRS website for the most updated and precise information regarding eligibility, declaring procedures, and readily available support.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on salaries paid to all staff members whether they really worked or not. To put it simply, even if the.
staff members worked full-time and got paid 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.
enabled only for incomes paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just money payments however also a portion of the expense of company.
provided healthcare. Employee Retention Credit Oklahoma
Companies can be immediately reimbursed for the credit by decreasing the amount of payroll taxes they.