Lets talk first about Employee Retention Credits 2023 :
Our team here what do these men doing everybody in this room is helping teach individuals about ERC and uh constantly provide a gorgeous breakfast and have individuals really discover the program we should head to the room where we are able to display a few of the checks that we are getting for companies and I wish 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 clients confirming that the check is on the method I mean you know 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 suggest consider 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 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 know when you
receive this you know the check is chosen sure and that’s when they pay so they don’t pay anything until they in fact receive the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they transfer it into their savings account and they can really trust Wonder trust that the procedure has been finished 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 6 billion dollars wow so clearly they understand what they’re doing and that’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 Fantastic here you’re at my YouTube channel we’re talking about something truly crucial today the worker retention credit which the majority of you have actually never ever heard of I definitely hadn’t become aware of it till really just recently and learned a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I’ve got the specialist 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 hard this isn’t like PPP we just call your bank supervisor and state 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 representative for this I like this program it’s going away soon you got to find out 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 provided companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there 2 of them are loans and one’s a refund exactly 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 mean that’s a huge difference a loan versus cash money I like money money that’s what we’re talking about 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 beautiful hard check in the mail where you get real cash from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s worker retention credit that person had to be a staff member so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have owned a business but it’s based upon you having W-2 staff members 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 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 appropriate so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. alright 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 cash just how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed 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 due to the fact that 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 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 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 caveat here the PPP cash would have 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 on average Kevin is if you took PPP money 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 employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the huge question is why does nobody understand about this since look when I initially found out about this when I initially met Josh you know I’ve got lots of investments in great deals of business I’m a major supporter for entrepreneurship in America and make many numerous financial investments in business owners of which numerous suffered through the pandemic when I first heard about this I called BS I do not believe it due to the fact that I use 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 survive during the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my political leader friends Guv Senators they didn’t know about it I mean that’s how you know that’s how false information is that there’s no info out there then a bunch of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody learn about the staff member retention credit you understand what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan process the federal government made it very clear that if you wanted 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 simply process procedure that’s all um and here there was turmoil because remember in the initial cares act you might not do both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it before 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 before unless you have an account that entered into this company and bottom line my company Kevin has actually been in business because 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge huge business clients have worked with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Because of COVID-19 or whose gross receipts, company whose service is fully or partly suspended.
decrease by more than 50%.
Availability.
1. The credit is offered 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.
businesses who take Small company Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. Once the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether an employer had, typically, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing help normally provide knowledge and assistance to assist services browse the complicated procedure of declaring the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credits 2023
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. If you satisfy the requirements for the credit and recognize the maximum credit quantity you can claim, they can assist figure out.
Paperwork and Computation: ERC filing services will assist in collecting the required documentation, such as payroll records and financial declarations, to support your claim. They will also help determine the credit quantity based on eligible earnings and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the necessary types and paperwork on your behalf. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have actually progressed with time. These business remain upgraded with the latest modifications and make sure that your filings abide by the most present guidelines. They can likewise offer continuous support if the IRS requests extra details or carries out an audit related to your ERC claim.
It’s important to research study and veterinarian any company offering ERC filing assistance to ensure their trustworthiness and proficiency. Search for recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax experts who offer ERC submitting support.
Keep in mind that while these business can provide important assistance, it’s always a good concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage businesses to maintain and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit services, tax-exempt organizations, and specific governmental entities. To qualify, employers should satisfy one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As discussed earlier, for 2021, a significant decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline 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 Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of qualified incomes paid to employees, including particular health plan costs. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they received a PPP loan. Nevertheless, the exact same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, enabling qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for companies to modify prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, generally Form 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have actually progressed gradually. The very best course of action is to talk to a tax professional or check out the official IRS site for the most updated and in-depth info relating to the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a service should fulfill one of the following requirements:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a significant decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable 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 right away preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and organizations that got a PPP loan might have limitations on declaring the credit.
The procedure for declaring the ERC includes completing the needed kinds and including the credit on your work income tax return (typically Kind 941). The exact time it takes to process the credit can differ based on numerous aspects, including the intricacy of your service and the work of the IRS. It’s recommended to speak with a tax professional for guidance specific to your situation.
There are a number of business that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some popular business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these companies directly to ask about their fees and services.
Please note that the information provided here is based upon basic understanding and may not show the most current updates or modifications to the ERC. It’s important to seek advice from a tax expert or check out the official internal revenue service site for the most up-to-date and precise info concerning eligibility, claiming treatments, and available assistance.
Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on earnings paid to all staff members whether they actually 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 employer had more than 100 staff members typically in 2019, then the credit is.
permitted only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments but likewise a portion of the cost of employer.
supplied healthcare. Employee Retention Credits 2023
Payment.
Companies can be right away reimbursed for the credit by decreasing the amount of payroll taxes they.