Discover: Form 3800 Employee Retention Credit 2023

Lets talk first about Form 3800 Employee Retention Credit :

Our team here what do these guys doing everyone in this space is assisting teach people about ERC and uh always provide a gorgeous breakfast and have individuals really discover the program we should head to the space where we are able to show a few of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars literally 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 begin to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I indicate consider 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 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 chosen sure which’s when they pay so they do not pay anything up until they actually get 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 checking account and they can really trust Wonder trust that the procedure has actually been ended up and the number of you believe you have actually processed considering that you started this we have to do with 35 000 of these for

 


about 6 billion dollars wow so clearly they know what they’re doing and that’s what you need you require experts 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 Terrific here you’re at my YouTube channel we’re talking about something actually essential today the worker retention credit which the majority of you have actually never ever heard of I definitely hadn’t heard of it till really just recently and discovered a lot about it due to the fact that this is probably the most affordable expense of capital for any small company anywhere

anytime if you have workers between five and five hundred so I’ve got the expert 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 challenging this isn’t like PPP we simply call up your bank manager and state provide 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 just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered companies 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 difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.

remedy the money cash payroll tax refund all right go on sorry I simply need to ensure we got that point I indicate that’s a huge difference a loan versus cash cash I like cash money that’s what we’re speaking 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 original cares Act is the ERC and yes Kevin it is a beautiful 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 sounds like to me if it’s a if it’s employee retention credit that individual needed 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 had to have actually owned a business however 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 qualified so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first six months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my favorite part money how much can you get back per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the staff member’s wage 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 a maximum of seven thousand per quarter how did that occur um they simply changed the rules in.

2021 versus since 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 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 six thousand dollars per worker that is since 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 minimize 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 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 IRS so it’s substantial undoubtedly now the huge concern is why does no one know about this since appearance when I initially became aware of this when I first met Josh you understand I’ve got lots of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make lots of many financial investments in business owners of which lots of suffered through the pandemic when I initially heard about this I called BS I do not think it because I utilize 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 used them carefully to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my political leader buddies Guv Senators they didn’t learn about it I mean that’s how you know 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 because you took the PPP also not true so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s interesting you’re speaking about the banks Kevin since in the PPP loan process 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 just process process that’s all um and here there was chaos due to the fact that keep in mind in the initial cares act you could refrain from doing both programs so if you had actually 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 because it’s not alone so you’re getting a tax refund so the federal government never 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 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 business your accountant no your accounting professional’s never done this before unless you have an account that went into this service and bottom line my company Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our huge big corporate clients have actually worked with bottom line to recuperate other government programs we have actually done sales tax and use tax unemployment 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 created to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose service is completely or partly suspended.
decline by more than 50%.
Accessibility.
1. The credit is available to all companies no matter size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.

Calculation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings varies by whether a company had, usually, more or less than.
100 workers in 2019.

Business that specialize in ERC filing assistance usually offer know-how and assistance to assist services navigate the intricate process of claiming the credit. They can offer numerous services, consisting of:.

 

How is the employee retention credit calculated? Form 3800 Employee Retention Credit

Eligibility Evaluation: These companies will assess your business’s eligibility for the ERC based on factors such as your industry, revenue, and operations. They can assist determine if you fulfill the requirements for the credit and recognize the optimum credit amount you can claim.
Documentation and Estimation: ERC filing services will help in gathering the required documentation, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit quantity based on qualified earnings and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to identify potential chances for retroactive credits. They can assist you amend previous income tax return to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the needed types and documentation on your behalf. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have developed in time. These companies stay updated with the most recent modifications and ensure that your filings comply with the most present standards. They can likewise offer ongoing support if the IRS requests additional info or performs an audit related to your ERC claim.
It is necessary to research and vet any business providing ERC filing support to guarantee their trustworthiness and know-how. Try to find established firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who provide ERC filing support.

Keep in mind that while these companies can supply valuable assistance, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified choices and guarantee accurate filings.

The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate organizations to keep and pay their employees during the pandemic, even if their operations have actually been impacted.

Here are some key points about the ERC:.

Eligibility: The ERC is offered to eligible employers, including for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, companies must meet one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As pointed out previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline 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 company’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of certified earnings paid to workers, consisting of particular health insurance 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 received an Income Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they got a PPP loan. The same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for services to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work tax returns, typically Form 941. The excess can be reimbursed to the company if the credit exceeds the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have actually developed with time. The best course of action is to consult with a tax professional or visit the main internal revenue service site for the most in-depth and updated information concerning the ERC, consisting of any current legislative changes or updates.

To receive the ERC, an organization must meet among the following criteria:.

Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, federal government entities and businesses that received a PPP loan might have restrictions on declaring the credit.

The process for declaring the ERC involves completing the required types and consisting of the credit on your employment tax return (normally Kind 941). The exact time it requires to process the credit can differ based on a number of aspects, including the complexity of your service and the workload of the internal revenue service. It’s suggested to talk to a tax professional for assistance particular to your scenario.

There are numerous business that can assist with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some widely known companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these companies straight to ask about their services and costs.

Please note that the information offered here is based on general understanding and might not reflect the most recent updates or modifications to the ERC. It is necessary to speak with a tax expert or check out the main IRS site for the most accurate and up-to-date info regarding eligibility, declaring treatments, and offered help.

Less than 100. If the company had 100 or less staff members on average in 2019, then the credit is based.
on wages paid to all workers whether they really worked or not. To put it simply, even if the.
staff members worked full time and got paid 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 wages paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not just cash payments however likewise a portion of the cost of company.
offered healthcare. Form 3800 Employee Retention Credit
Payment.

Companies can be right away compensated for the credit by reducing the quantity of payroll taxes they.