Lets talk first about Employee Retention Credit Statute :
Our team here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly offer a lovely breakfast and have individuals actually find out about the program we ought to head to the space where we are able to show a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I suggest you understand if you simply start to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I indicate think of how many real customers that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
get this you know the check is gone for sure and that’s when they pay so they do not pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their savings account and they can truly rely on Wonder trust that the process has been finished and the number of you believe you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you need you need 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 actually essential today the worker retention credit which most of you have never ever become aware of I certainly had not become aware of it till extremely recently and discovered a lot about it because this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have employees between five and five hundred so I have actually got the specialist 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 not easy this isn’t like PPP we just phone your bank supervisor 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 have actually become yes the Ambassador and paid representative for this I enjoy 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 simply begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund alright go on sorry I just need to make sure we got that point I indicate that’s a big distinction a loan versus money cash I like cash cash 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 beautiful hard check in the mail where you get actual money from the internal revenue service all right so let’s talk 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 staff member 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 employees right you needed to have owned an organization but it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be qualified so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six months of 2021 on the W-2 right so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 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 during that period now let’s talk my preferred part money how much can you get back per worker that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s income to a maximum of five thousand dollars per employee 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 take place um they simply altered the rules in.
2021 versus due to the fact that 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 as much as five 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 6 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 money would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment 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 huge certainly now the huge concern is why does nobody learn about this since look when I initially heard about this when I first satisfied Josh you understand I’ve got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous lots of investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t think it because I utilize the PPP we went through the money 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 been worthy of and we used them wisely to survive during the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my politician friends Governor Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no details out there then a bunch of people informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s interesting you’re discussing the banks Kevin because 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 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 turmoil since keep in mind in the initial cares act you might not do both programs so if you had done PPP you might not do ERC in the original program and when they altered the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the government never made it clear to anyone 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 do not do it the payroll companies yeah some 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 entered into this service and bottom line my firm Kevin has been in business given that 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 lot of our huge big corporate customers have actually worked with bottom line to recover other 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 government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members 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 invoices, company whose organization is totally or partly suspended.
decline by more than 50%.
Accessibility.
1. The credit is readily available to all companies no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is totally or partly suspended by federal 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. Once the.
employer’s gross invoices go above 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 certifying incomes paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings varies by whether a company had, on average, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing support generally provide expertise and assistance to help businesses navigate the complicated process of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Statute
Eligibility Assessment: These companies will examine your organization’s eligibility for the ERC based on factors such as your industry, revenue, and operations. They can help identify if you satisfy the requirements for the credit and determine the optimum credit quantity you can declare.
Documents and Estimation: ERC filing services will help in collecting the required paperwork, such as payroll records and monetary statements, to support your claim. They will likewise help calculate the credit amount based upon eligible wages and other qualifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to determine possible opportunities for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the necessary kinds and documents in your place. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually developed with time. These companies stay updated with the current modifications and guarantee that your filings comply with the most current standards. If the Internal revenue service requests extra details or carries out an audit associated to your ERC claim, they can also supply continuous support.
It is very important to research and veterinarian any company using ERC filing assistance to guarantee their trustworthiness and know-how. Look for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax professionals who provide ERC filing assistance.
Keep in mind that while these business can provide valuable assistance, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified 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 goal of the ERC is to encourage companies to maintain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, employers must satisfy one of two requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As pointed out earlier, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease 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 percentage (up to 70%) of qualified earnings paid to staff members, including particular health insurance costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they got a PPP loan. However, the very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, enabling eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, usually Form 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the employer.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have progressed over time. The very best strategy is to talk to a tax professional or visit the main internal revenue service site for the most current and in-depth details relating to the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, an organization needs to meet among the following requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices 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 businesses of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and services that received a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC includes completing the required types and consisting of the credit on your employment income tax return (normally Type 941). The exact time it requires to process the credit can vary based on numerous elements, including the complexity of your organization and the work of the IRS. It’s advised to talk to a tax expert for guidance specific to your scenario.
There are a number of business that can assist with the process of declaring the ERC. Some well-known companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based on basic understanding and might not reflect the most current updates or modifications to the ERC. It’s important to consult with a tax professional or visit the official IRS site for the most accurate and up-to-date details concerning eligibility, declaring procedures, and offered help.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on wages paid to all employees 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 employer had more than 100 staff members on average in 2019.
allowed just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” includes not just cash payments but likewise a portion of the expense of company.
supplied health care. Employee Retention Credit Statute
Payment.
Employers can be instantly repaid for the credit by decreasing the amount of payroll taxes they.