Lets talk first about Employee Retention Credit Working Through Pandemic :
Our team here what do these people doing everyone in this space is assisting teach individuals about ERC and uh always provide a beautiful breakfast and have people actually find out about the program we ought to head to the room where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming 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 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 about 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 verified 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 know the check is chosen sure which’s when they pay so they do not pay anything till they actually receive the money 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 savings account and they can truly rely on Wonder trust that the procedure has actually been ended up and how many you believe you’ve processed considering that 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 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 worker retention credit which most of you have never become aware of I certainly hadn’t heard of it till really just recently and discovered a lot about it since this is probably the lowest cost of capital for any small business anywhere
anytime if you have workers between 5 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 Ideas they’re the largest 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 say 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 ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to learn all about it let’s talk staff member 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 offered services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund okay go on sorry I just have to make sure we got that point I indicate that’s a huge distinction a loan versus money money I like cash money that’s what we’re discussing fine and the other loans are done so we’re sitting here in 2023 and the eidl is over the PPP is over and the only one left from the original cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual cash from the IRS all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that individual needed to be a staff member so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you had to have owned a business but it’s based upon 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 need to be on payroll for the very first six months of 2021 on the W-2 correct so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one two and three 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 favorite part money just how much can you return per staff member 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 income to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that occur um they simply changed the rules in.
2021 versus since the turmoil 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 approximately 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a lot of cash it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment 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 internal revenue service so it’s substantial obviously now the big concern is why does nobody learn about this since appearance when I first heard about this when I first fulfilled Josh you understand I’ve got great deals of investments in lots of business I’m a major advocate for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I first found out about this I called BS I don’t believe it due to the fact that 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 been worthy of and we used them sensibly to stay alive throughout the pandemic so when I became aware of this I stated 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 learn about it I imply that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one know about the staff member retention credit you understand what’s interesting you’re speaking about the banks Kevin due to the fact that in the PPP loan process the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was chaos due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the original program and when they changed the law in 2021 the banks were 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 anybody about how to.
do this does your CFO know how to do this not really he or she’s never ever 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 company your accounting professional no your accountant’s never ever done this before unless you have an account that entered into this organization and bottom line my company Kevin has stayed in business because 2009 and we have actually been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have actually dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose organization is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is readily available to all employers regardless of 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 needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts go above 80% of a similar 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 certifying earnings paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries varies by whether a company had, typically, basically than.
100 staff members in 2019.
Companies that focus on ERC filing assistance typically provide know-how and assistance to help organizations browse the intricate process of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Working Through Pandemic
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon factors such as your market, revenue, and operations. They can assist figure out if you meet the requirements for the credit and determine the maximum credit amount you can claim.
Paperwork and Calculation: ERC filing services will help in collecting the needed documentation, such as payroll records and monetary statements, to support your claim. They will likewise help calculate the credit amount based on qualified incomes and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can evaluate your previous payroll records and financials to determine potential opportunities for retroactive credits. They can help you amend previous income tax return to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and send the required types and documents on your behalf. This consists of finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have evolved gradually. These companies remain updated with the latest modifications and ensure that your filings abide by the most present standards. If the Internal revenue service demands additional info or carries out an audit related to your ERC claim, they can likewise provide ongoing support.
It is essential to research and vet any company offering ERC filing assistance to ensure their trustworthiness and knowledge. Try to find recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax experts who provide ERC submitting support.
Bear in mind that while these companies can supply valuable assistance, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to encourage companies to keep and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, companies need to satisfy one of two requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a substantial decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts 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 amounts to a portion (up to 70%) of qualified earnings paid to workers, consisting of specific health plan costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. The exact same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, enabling qualified employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Kind 941. The excess can be refunded to the employer if the credit exceeds the amount of work taxes owed.
It is necessary to note that the ERC arrangements and eligibility criteria have developed in time. The very best strategy is to consult with a tax expert or go to the official IRS website for the most detailed and updated information regarding the ERC, including any current legislative changes or updates.
To receive the ERC, a company must meet one of the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and businesses that got a PPP loan may have constraints on claiming the credit.
The procedure for declaring the ERC involves finishing the essential types and consisting of the credit on your employment tax return (normally Type 941). The exact time it requires to process the credit can differ based upon numerous aspects, including the intricacy of your business and the work of the IRS. It’s advised to seek advice from a tax professional for assistance specific to your scenario.
There are several business that can assist with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some well-known business that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these business straight to ask about their fees and services.
Please note that the details provided here is based on general understanding and might not reflect the most current updates or modifications to the ERC. It is necessary to consult with a tax expert or check out the official internal revenue service site for the most precise and updated info relating to eligibility, declaring procedures, and offered support.
Less than 100. The credit is based if the company had 100 or less staff members on average in 2019.
on salaries paid to all employees whether they actually worked or not. In other words, even if the.
employees worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 employees usually in 2019, then the credit is.
permitted only for salaries paid to workers who did not work during the calendar quarter.
In both cases, “salaries” includes not simply cash payments but likewise a portion of the expense of employer.
offered healthcare. Employee Retention Credit Working Through Pandemic
Employers can be immediately repaid for the credit by minimizing the quantity of payroll taxes they.