Lets talk first about Employee Retention Credit \’s-corp :

Our group here what do these men doing everyone in this space is helping teach people about ERC and uh always offer a stunning breakfast and have individuals actually learn about the program we must head to the room where we are able to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I mean you understand if you just begin 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 simply I mean think of the number of real customers that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability 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 until they actually get the cash they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their bank account and they can truly rely on Wonder trust that the process has been ended up and the number of you believe you’ve processed considering that 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 which’s what you require you need specialists 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 speaking about something truly important today the staff member retention credit which most of you have never heard of I definitely hadn’t become aware of it up until very recently and learned a lot about it due to the fact that this is probably the lowest cost of capital for any small company anywhere

anytime if you have staff members between five 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 biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call your bank manager and state offer 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 representative for this I enjoy this program it’s going away very soon you got to learn all about it let’s talk employee 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 used businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge difference right there 2 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 fine go on sorry I just have to make sure we got that point I suggest that’s a huge distinction a loan versus cash cash I like cash money that’s what we’re speaking about okay 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 difficult check in the mail where you get actual cash from the internal revenue service all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that person had 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 staff members right you needed to have actually owned an organization but it’s based upon 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 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s salary to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of 7 thousand per quarter how did that take place um they just altered the rules in.

2021 versus since the chaos 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 after that 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 6 thousand dollars per worker that is because that’s a lot of money it is now there’s a caution here the PPP money would need to be lowered 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 somewhere around 10 thousand dollars an individual so let’s state 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 big certainly now the huge concern is why does nobody learn about this due to the fact that look when I first found out about this when I initially satisfied Josh you understand I have actually got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I don’t think it due to the fact that I utilize the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well deserved and we utilized them wisely to survive during the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician good friends Governor Senators they didn’t learn about it I imply that’s how you know that’s how false information is that there’s no details out there then a lot of people informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one learn about the employee 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was chaos due to the fact that remember in the original cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the original program and when they altered 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 know how to do this not actually she or he’s never 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 business your accounting professional no your accountant’s never done this before unless you have an account that entered into this service and bottom line my firm Kevin has stayed in business given that 2009 and we have actually been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big huge business customers have dealt with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home 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 employees on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
company whose company is fully or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Availability.
1. The credit is available to all employers regardless of size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed 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 qualify.
after completion of that quarter.

Estimation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying wages differs by whether a company had, usually, basically than.
100 employees in 2019.

Business that concentrate on ERC filing support usually supply expertise and assistance to assist businesses browse the intricate procedure of claiming the credit. They can provide numerous services, including:.

 

How is the employee retention credit calculated? Employee Retention Credit \’s-corp

Eligibility Assessment: These business will assess your business’s eligibility for the ERC based on aspects such as your industry, income, and operations. They can assist determine if you satisfy the requirements for the credit and determine the optimum credit amount you can declare.
Paperwork and Estimation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and monetary statements, to support your claim. They will likewise help calculate the credit quantity based upon eligible earnings and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize possible chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Help: Business concentrating on ERC filings will prepare and send the essential forms and paperwork on your behalf. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have actually developed over time. These business stay updated with the most recent changes and make sure that your filings comply with the most present standards. They can also provide ongoing support if the internal revenue service demands extra info or carries out an audit related to your ERC claim.
It is very important to research and veterinarian any company using ERC filing help to ensure their trustworthiness and know-how. Try to find recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who offer ERC filing assistance.

Bear in mind that while these business can supply valuable help, it’s constantly an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and guarantee precise filings.

The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to encourage organizations to maintain and pay their staff members throughout the pandemic, even if their operations have been impacted.

Here are some key points about the ERC:.

Eligibility: The ERC is available to qualified employers, including for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, companies must fulfill one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decline 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 receipts compared to the 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 certified salaries paid to employees, including certain 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: At first, organizations that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. The exact same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, enabling qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for companies to change prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, usually Type 941. The excess can be reimbursed to the company if the credit exceeds the amount of work taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have actually evolved over time. The best course of action is to consult with a tax expert or go to the main IRS website for the most up-to-date and in-depth info relating to the ERC, consisting of any recent legislative changes or updates.

To qualify for the ERC, a service needs to satisfy among the following requirements:.

The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. 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 significant decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have limitations on claiming the credit.

The procedure for claiming the ERC includes finishing the needed types and including the credit on your employment income tax return (normally Form 941). The exact time it requires to process the credit can differ based on several aspects, including the intricacy of your organization and the workload of the IRS. It’s advised to speak with a tax expert for guidance particular to your situation.

There are a number of business that can help with the procedure of declaring the ERC. Some widely known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.

Please keep in mind that the information supplied here is based upon general understanding and might not show the most recent updates or modifications to the ERC. It is essential to talk to a tax expert or visit the official IRS site for the most precise and up-to-date details relating to eligibility, declaring procedures, and available assistance.

Less than 100. If the company had 100 or fewer employees on average in 2019, then the credit is based.
on earnings paid to all staff members whether they actually worked or not. In other words, even if the.
workers worked full time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply cash payments but likewise a portion of the cost of employer.
offered healthcare. Employee Retention Credit \’s-corp
Payment.

Companies can be immediately reimbursed for the credit by reducing the amount of payroll taxes they.

Lets talk first about Employee Retention Credit S Corp :

Our group here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly supply a beautiful breakfast and have people really discover the program we ought to head to the room where we have the ability to display some of the checks that we are getting for companies and I ‘d like 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 customers validating that the check is on the way I suggest you know if you just start to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I indicate 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 confirmed 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’re able to track it you understand when you

receive this you know the check is gone for sure which’s when they pay so they do not pay anything up until they really get the cash they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their checking account and they can genuinely 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 six billion dollars wow so plainly they know what they’re doing which’s what you require you require specialists 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 Fantastic here you’re at my YouTube channel we’re discussing something really essential today the staff member retention credit which most of you have never heard of I definitely hadn’t become aware of it until extremely recently and discovered a lot about it since this is probably the lowest cost of capital for any small company anywhere

anytime if you have employees between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 simply call your bank manager and say give me a loan it doesn’t 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 enjoy this program it’s disappearing soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided services 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 huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.

fix the cash money payroll tax refund alright go on sorry I just have to make sure we got that point I mean that’s a big distinction a loan versus money money I like money money that’s what we’re talking about okay 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 gorgeous hard check in the mail where you get actual cash from the IRS all right so let’s speak about how it works because it seems like to me if it’s a if it’s employee retention credit that individual had to be an employee so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for staff members right you needed to have actually owned a business but it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 employees 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 very 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 three and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part money how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s salary to an optimum of seven thousand per quarter how did that happen um they just altered the rules in.

2021 versus because the turmoil of the pandemic so they wished to even get more to keep those employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the big concern is why does nobody learn about this because look when I first became aware of this when I initially fulfilled Josh you understand I’ve got great deals of investments in great deals of business I’m a major advocate for entrepreneurship in America and make numerous lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I do not believe it due to the fact that I utilize 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 and that were well deserved and we used them sensibly to stay alive throughout the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even contacted us to my politician buddies Governor Senators they didn’t learn about it I indicate that’s how you know that’s how false information is that there’s no information out there then a lot of people told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one understand about the worker retention credit you understand what’s intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan process 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 procedure that’s all um and here there was turmoil since keep in mind in the original cares act you might not do both programs so if you had done PPP you could not do ERC in the initial program and when they altered 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 federal government never ever made it clear to anybody about how to.

do this does your CFO know how to do this not really he or she’s never done it previously do the banks do it nope the banks do not do it the payroll business yeah a few 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 went into this service and bottom line my company Kevin has actually stayed in business because 2009 and we’ve 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 big corporate clients have worked 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 federal government programs.

The employee retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross receipts, company whose organization is completely or partly suspended.
decline by more than 50%.
Accessibility.
1. The credit is available to all companies despite size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. Once the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.

Computation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether a company had, usually, basically than.
100 employees in 2019.

Business that specialize in ERC filing assistance usually supply competence and support to assist businesses navigate the complex process of declaring the credit. They can offer numerous services, consisting of:.

 

How is the employee retention credit calculated? Employee Retention Credit S Corp

Eligibility Assessment: These companies will evaluate your company’s eligibility for the ERC based on elements such as your industry, profits, and operations. If you satisfy the requirements for the credit and identify the maximum credit quantity you can declare, they can assist figure out.
Documents and Computation: ERC filing services will help in collecting the needed documents, such as payroll records and financial declarations, to support your claim. They will also help compute the credit amount based upon eligible salaries and other qualifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the needed types and documentation in your place. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed over time. These companies remain upgraded with the most recent changes and guarantee that your filings abide by the most existing standards. If the IRS requests extra information or carries out an audit associated to your ERC claim, they can also offer ongoing support.
It is very important to research and veterinarian any company offering ERC filing assistance to guarantee their credibility and expertise. Search for established firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who use ERC filing assistance.

Bear in mind that while these companies can supply valuable support, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and guarantee precise filings.

The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to encourage companies to maintain and pay their workers during the pandemic, even if their operations have been affected.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is offered to eligible employers, including for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers need to fulfill one of two requirements:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As pointed out earlier, for 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a percentage (as much as 70%) of qualified wages paid to staff members, consisting of particular health plan costs. The maximum credit per worker 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 Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they got a PPP loan. However, the exact same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, permitting eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, normally Type 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the company.
It is necessary to note that the ERC arrangements and eligibility requirements have actually progressed in time. The very best course of action is to consult with a tax expert or check out the official internal revenue service website for the most up-to-date and comprehensive information relating to the ERC, consisting of any recent legislative changes or updates.

To get approved for the ERC, a service should meet among the following requirements:.

Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, federal government entities and businesses that received a PPP loan might have constraints on claiming the credit.

The process for claiming the ERC involves completing the necessary forms and consisting of the credit on your work tax return (usually Type 941). The exact time it requires to process the credit can differ based on several elements, including the complexity of your service and the work of the IRS. It’s recommended to consult with a tax expert for assistance particular to your scenario.

There are a number of business that can assist with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some popular companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and call these business straight to inquire about their fees and services.

Please note that the information provided here is based upon basic understanding and may not show the most recent updates or changes to the ERC. It is necessary to talk to a tax expert or go to the main internal revenue service site for the most accurate and updated details relating to eligibility, declaring treatments, and readily available assistance.

Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on earnings paid to all staff members whether they actually worked or not. To put it simply, even if the.
workers worked full time and made money for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 staff members typically in 2019, then the credit is.
enabled just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments however likewise a portion of the expense of company.
provided healthcare. Employee Retention Credit S Corp
Payment.

Employers can be right away compensated for the credit by minimizing the amount of payroll taxes they.

Lets talk first about Employee Retention Credit S-corp :

Our team here what do these men doing everybody in this space is assisting teach people about ERC and uh always provide a lovely breakfast and have people really learn about the program we ought to head to the space where we are able 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 hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I suggest you know if you simply start to take a 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 indicate think of the number of real 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 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 know when you

get this you understand the check is opted for sure and that’s when they pay so they do not pay anything until they in fact receive the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their savings account and they can genuinely rely on Wonder trust that the procedure has been completed and the number of you think you’ve processed given that you started this we have to do with 35 000 of these for

 

about six billion dollars wow so plainly they know what they’re doing which’s what you require you require specialists 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 speaking about something really essential today the worker retention credit which the majority of you have actually never ever become aware of I definitely hadn’t become aware of it till very just recently and learned a lot about it because this is probably the most affordable cost of capital for any small company anywhere

anytime if you have workers in 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 biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call up your bank manager and say provide 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 have actually become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to learn all 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 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 nearly everybody it makes a big distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.

fix the cash money payroll tax refund alright go on sorry I simply need to ensure we got that point I suggest that’s a huge distinction a loan versus cash cash I like cash cash that’s what we’re talking about all right 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 gorgeous difficult check in the mail where you get real cash 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 staff member retention credit that person had to be a worker so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you needed 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 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 very first six months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of seven thousand per quarter how did that happen um they just altered the rules in.

2021 versus because the mayhem of the pandemic so they wanted to even get more to keep those employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as 5 thousand Max and after that what happens 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 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 reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York 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 concern is why does nobody know about this since look when I initially heard about this when I first fulfilled Josh you know I have actually got lots of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous numerous financial investments in business owners of which numerous suffered through the pandemic when I initially became aware of 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 and that were well should have and we utilized them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even called to my political leader good friends Guv Senators they didn’t know about it I suggest that’s how you know that’s how false information is that there’s no details out there then a lot of people informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody learn about the worker retention credit you understand what’s fascinating 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 huge 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 just process process that’s all um and here there was chaos due to the fact that remember in the initial cares act you might not do both programs so if you had done PPP you could not do ERC in the original program and when they altered 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 federal government never ever made it clear to anyone about how to.

do this does your CFO know how to do this not really he or she’s never ever done it in the past do the banks do it nope the banks do not 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 ever done this prior to unless you have an account that entered into this organization 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 recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.

The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Since of COVID-19 or whose gross invoices, company whose business is completely or partly suspended.
decrease by more than 50%.
Availability.
1. The credit is readily 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) little.
businesses who take Small Business Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.

Calculation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying wages varies by whether an employer had, typically, more or less than.
100 employees in 2019.

Companies that focus on ERC filing assistance normally provide know-how and assistance to help companies browse the complicated procedure of declaring the credit. They can provide numerous services, consisting of:.

 

How is the employee retention credit calculated? Employee Retention Credit S-corp

Eligibility Evaluation: These companies will examine your company’s eligibility for the ERC based on aspects such as your industry, income, and operations. If you satisfy the requirements for the credit and identify the maximum credit amount you can declare, they can assist identify.
Documentation and Computation: ERC filing services will assist in gathering the needed documents, such as payroll records and financial statements, to support your claim. They will likewise assist calculate the credit amount based upon eligible wages and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you modify previous income tax return to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and submit the essential kinds and documentation on your behalf. This consists of finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have developed over time. These business stay upgraded with the current modifications and ensure that your filings comply with the most existing standards. They can also offer continuous assistance if the internal revenue service requests additional information or conducts an audit related to your ERC claim.
It is very important to research and vet any company using ERC filing help to guarantee their trustworthiness and proficiency. Look for established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax professionals who use ERC filing assistance.

Remember that while these business can provide important assistance, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and guarantee accurate filings.

The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to motivate companies to maintain and pay their workers during the pandemic, even if their operations have been affected.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is available to eligible companies, including for-profit services, tax-exempt companies, and particular governmental entities. To certify, companies must fulfill one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As pointed out earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a portion (up to 70%) of qualified 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, organizations that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. Nevertheless, the exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to amend prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, generally Type 941. If the credit surpasses the quantity of work taxes owed, the excess can be reimbursed to the company.
It is essential to note that the ERC provisions and eligibility requirements have developed in time. The very best strategy is to talk to a tax professional or check out the main IRS website for the most detailed and up-to-date info relating to the ERC, consisting of any current legal modifications or updates.

To get approved for the ERC, an organization must satisfy one of the following requirements:.

Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and businesses that received a PPP loan may have constraints on claiming the credit.

The procedure for declaring the ERC involves finishing the essential kinds and consisting of the credit on your work tax return (typically Kind 941). The exact time it requires to process the credit can differ based on a number of aspects, consisting of the intricacy of your service and the work of the internal revenue service. It’s recommended to seek advice from a tax professional for guidance specific to your situation.

There are several companies that can assist with the procedure of declaring the ERC. Some well-known business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.

Please note that the info provided here is based upon general knowledge and might not reflect the most recent updates or modifications to the ERC. It is very important to talk to a tax professional or visit the main internal revenue service website for the most accurate and current info concerning eligibility, declaring treatments, and readily available support.

Less than 100. If the company had 100 or less staff members usually in 2019, then the credit is based.
on incomes paid to all employees whether they really worked or not. In other words, even if the.
staff members worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 employees typically in 2019, then the credit is.
allowed just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply money payments but also a portion of the expense of employer.
provided healthcare. Employee Retention Credit S-corp
Payment.

Employers can be instantly compensated for the credit by minimizing the amount of payroll taxes they.