Lets talk first about Employee Retention Credit Wisconsin :
Our group here what do these guys doing everybody in this room is assisting teach people about ERC and uh always supply a gorgeous breakfast and have individuals actually find out about the program we must head to the space where we are able to display a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I suggest you understand if you just start to look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest think about the number of real customers that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you understand when you
get this you understand the check is opted 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 up until this letter is confirmed the check is on the way they deposit it into their bank account and they can really trust Wonder trust that the procedure has actually been completed and the number of you believe you have actually processed since you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you require professionals on the other end of the phone to process this and get it to where you get among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re talking about something truly important today the staff member retention credit which most of you have actually never ever heard of I definitely had not heard of it up until extremely just recently and found out a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply call your bank supervisor and state give 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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.
fix the money money payroll tax refund all right go on sorry I simply have to make sure we got that point I imply that’s a huge distinction a loan versus money money I like cash money that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get real money from the IRS all right so let’s talk about how it works since it seems like to me if it’s a if it’s worker retention credit that individual had to be an employee so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for staff members right you had to have actually owned a company but it’s based on you having W-2 employees 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 need 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 correct 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. 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 cash how much can you return per worker 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 income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus because 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 worker that is because that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be minimized 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 typically Kevin is if you took PPP money somewhere around 10 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 money you would still get a million dollar in the mail from the IRS so it’s big obviously now the huge question is why does nobody know about this due to the fact that appearance when I initially found out about this when I first met Josh you know I have actually got great deals of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many many financial 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 due to the fact that I use the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well deserved 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 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 told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody understand about the staff member retention credit you know what’s intriguing you’re discussing the banks Kevin since in the PPP loan procedure the federal government made it extremely 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 process procedure that’s all um and here there was mayhem because keep in mind in the original cares act you could not do both programs so if you had done PPP you could not do ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not truly he or she’s never done it before do the banks do it nope the banks don’t do it the payroll business 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 organization and bottom line my company Kevin has been in business given that 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge big business customers have actually dealt 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 real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, employer whose service is fully or partially suspended.
decrease by more than 50%.
1. The credit is offered to all companies despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s company is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’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.
Computation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings differs by whether an employer had, on average, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing assistance usually offer expertise and assistance to help businesses browse the complicated process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Wisconsin
Eligibility Assessment: These business will examine your company’s eligibility for the ERC based upon factors such as your market, income, and operations. If you satisfy the requirements for the credit and recognize the optimum credit quantity you can declare, they can help determine.
Documents and Calculation: ERC filing services will assist in gathering the essential documentation, such as payroll records and financial declarations, to support your claim. They will likewise help compute the credit quantity based on eligible salaries and other certifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to determine potential opportunities for retroactive credits. They can help you amend prior tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the needed kinds and documents in your place. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have actually evolved over time. These business remain updated with the most recent changes and guarantee that your filings adhere to the most present standards. If the Internal revenue service demands extra details or conducts an audit related to your ERC claim, they can also provide continuous assistance.
It is necessary to research study and vet any business providing ERC filing assistance to ensure their reliability and expertise. Try to find recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who use ERC submitting assistance.
Bear in mind that while these companies can supply valuable help, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage services to maintain and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit organizations, tax-exempt organizations, and particular governmental entities. To certify, companies must fulfill one of two criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified 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 instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a percentage (up to 70%) of qualified salaries paid to workers, including specific health insurance costs. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they got a PPP loan. The same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, permitting eligible employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for organizations to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, usually Kind 941. The excess can be refunded to the employer if the credit exceeds the amount of employment taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually evolved gradually. The very best strategy is to talk to a tax expert or go to the official IRS site for the most current and in-depth details concerning the ERC, including any current legal modifications or updates.
To get approved for the ERC, a business must fulfill among the following criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a significant decrease is specified as a 20% decline in gross invoices 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% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and organizations that got a PPP loan might have restrictions on declaring the credit.
The procedure for claiming the ERC involves finishing the essential forms and consisting of the credit on your work tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon numerous aspects, including the complexity of your service and the work of the internal revenue service. It’s suggested to speak with a tax professional for guidance particular to your scenario.
There are several business that can help with the process of declaring the ERC. Some popular companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information provided here is based upon basic understanding and might not reflect the most recent updates or changes to the ERC. It is necessary to talk to a tax expert or check out the main internal revenue service website for the most accurate and up-to-date information relating to eligibility, declaring procedures, and offered help.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on wages paid to all workers whether they really worked or not. In other words, even if the.
employees worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 employees on average in 2019, then the credit is.
permitted only for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply cash payments however likewise a portion of the expense of employer.
offered health care. Employee Retention Credit Wisconsin
Companies can be immediately compensated for the credit by minimizing the quantity of payroll taxes they.