Lets talk first about Employee Retention Credit Payback :
Our team here what do these people doing everyone in this room is assisting teach individuals about ERC and uh always provide a gorgeous breakfast and have people really learn about the program we ought to head to the space where we have the ability to display a few of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I imply you understand if you simply begin to take a 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 suggest it’s simply I suggest consider the number of actual clients 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 client so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything till they really receive the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their savings account and they can truly rely on Wonder trust that the procedure has been ended up and the number of you believe you’ve processed because you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something truly important today the worker retention credit which the majority of you have never heard of I certainly had not become aware of it up until really just recently and found out a lot about it since this is most likely 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 professional 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 difficult this isn’t like PPP we simply call your bank manager and say offer me a loan it doesn’t 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 ended up being yes the Ambassador and paid representative for this I love this program it’s disappearing very soon you got to discover 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 came up with the cares Act and the cares act offered companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money cash payroll tax refund alright go on sorry I just have to ensure we got that point I imply that’s a big 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 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 speak about how it works because it sounds like to me if it’s a if it’s worker retention credit that person had to be an employee so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you had to have actually owned a business but it’s based on 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 very 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 four of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part money just 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 employee’s salary to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus since the turmoil 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 develop twenty 6 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 great deal of cash it is now there’s a caveat here the PPP cash would have 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 somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the huge question is why does no one understand about this due to the fact that look when I initially heard about this when I first fulfilled Josh you know I have actually got great deals of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of numerous investments in business owners of which lots of suffered through the pandemic when I initially found out about this I called BS I don’t think it because I use the PPP we went through the money 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 been worthy of and we utilized them wisely to survive during the pandemic so when I became aware of this I said 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 know about it I imply that’s how you know 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 due to the fact that you took the PPP likewise not real so let’s ask Josh why does nobody learn about the worker retention credit you know what’s interesting you’re speaking about the banks Kevin since in the PPP loan process the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was chaos due to the fact that remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC due to the fact that 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 know how to do this not actually she or he’s never done it before 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 business your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this service and bottom line my firm Kevin has actually stayed in business since 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big huge business customers have actually worked with bottom line to recover other federal government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose business is completely or partly suspended.
decline by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether an employer had, typically, basically than.
100 workers in 2019.
Business that focus on ERC filing assistance generally supply competence and support to help companies browse the intricate process of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Payback
Eligibility Assessment: These companies will examine your service’s eligibility for the ERC based on aspects such as your industry, profits, and operations. They can help determine if you fulfill the requirements for the credit and recognize the maximum credit amount you can declare.
Documents and Computation: ERC filing services will help in collecting the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit amount based on eligible salaries and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these business can examine your past payroll records and financials to identify potential chances for retroactive credits. They can help you change prior income tax return to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and submit the necessary forms and paperwork on your behalf. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have developed with time. These companies remain upgraded with the latest modifications and make sure that your filings abide by the most present standards. They can also offer ongoing support if the internal revenue service demands additional information or conducts an audit related to your ERC claim.
It is necessary to research and veterinarian any business offering ERC filing assistance to ensure their credibility and knowledge. Look for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who offer ERC submitting assistance.
Bear in mind that while these companies can supply important support, it’s constantly a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure accurate 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 measures. The objective of the ERC is to encourage businesses to maintain and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, consisting of for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, employers should meet one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. As mentioned previously, for 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly 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 portion (as much as 70%) of qualified incomes paid to employees, including certain health plan expenditures. 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 Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they received a PPP loan. The exact same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and enhanced, allowing eligible employers to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to amend prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, generally Form 941. The excess can be reimbursed to the company if the credit surpasses the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility requirements have actually developed with time. The very best course of action is to talk to a tax professional or visit the official internal revenue service site for the most detailed and up-to-date info regarding the ERC, consisting of any current legislative modifications or updates.
To receive the ERC, a business should fulfill 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 decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and companies that got a PPP loan may have restrictions on claiming the credit.
The process for declaring the ERC includes completing the essential types and including the credit on your employment income tax return (usually Type 941). The exact time it requires to process the credit can vary based on numerous aspects, including the intricacy of your company and the workload of the IRS. It’s recommended to talk to a tax professional for guidance particular to your scenario.
There are several companies that can help with the process of declaring the ERC. Some well-known companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based upon general understanding and might not reflect the most recent updates or modifications to the ERC. It’s important to talk to a tax expert or check out the official internal revenue service site for the most accurate and updated information relating to eligibility, declaring procedures, and offered help.
Less than 100. If the company had 100 or less staff members on average in 2019, then the credit is based.
on wages paid to all employees whether they in fact worked or not. To put it simply, even if the.
employees worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled just for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “wages” consists of not simply cash payments however also a portion of the expense of company.
provided healthcare. Employee Retention Credit Payback
Companies can be instantly repaid for the credit by lowering the quantity of payroll taxes they.