Lets talk first about Form 8846 And Employee Retention Credit :
Our group here what do these people doing everyone in this space is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have people actually discover the program we need to head to the space where we have the ability to display some of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars actually Kevin hundreds of millions of 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 take a look at some 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 just I imply think about how many 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 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 understand when you
get this you know the check is chosen sure and that’s when they pay so they do not pay anything till they actually get the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their checking account and they can truly trust Wonder trust that the process has actually been completed and the number of you think you’ve processed given that you began this we’re about 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 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 Wonderful here you’re at my YouTube channel we’re talking about something really important today the employee retention credit which the majority of you have actually never become aware of I certainly had not heard of it until extremely recently and found out a lot about it because this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees in 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply contact your bank supervisor and state provide 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 representative for this I like this program it’s disappearing very soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with 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 nearly everybody 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.
fix the money cash payroll tax refund all right go on sorry I simply have to ensure we got that point I indicate that’s a huge difference a loan versus money cash I like money cash that’s what we’re speaking about okay 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 gorgeous difficult check in the mail where you get real money from the IRS all right so let’s talk 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 person had to be a staff member so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have actually owned an organization 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 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 right so there were 6 quarters the program was open well walk us through the 6 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 have to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’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 salary to a maximum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the mayhem 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 up to five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six 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 money it is now there’s a caveat here the PPP money would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial certainly now the huge concern is why does no one understand about this because look when I first became aware of this when I initially met Josh you know I’ve got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of lots of investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I do not believe it since I utilize the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we utilized them wisely to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even contacted us to my politician friends Guv Senators they didn’t learn about it I indicate 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 likewise not real so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s intriguing you’re speaking about the banks Kevin due to the fact that 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 big 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 just procedure procedure that’s all um and here there was mayhem since keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you might 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 made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’s never done it in the past do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll company your accounting professional no your accountant’s never done this before unless you have an account that went into this service and bottom line my company Kevin has stayed in business considering that 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our big big business customers have dealt with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose business is totally or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all companies no matter size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. When the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in overall.
It works for salaries paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether a company had, typically, basically than.
100 staff members in 2019.
Business that specialize in ERC filing support usually provide know-how and assistance to assist organizations browse the intricate process of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Form 8846 And Employee Retention Credit
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based upon factors such as your market, revenue, and operations. If you meet the requirements for the credit and determine the optimum credit quantity you can claim, they can help identify.
Documents and Computation: ERC filing services will help in gathering the needed documentation, such as payroll records and monetary statements, to support your claim. They will also help determine the credit quantity based upon eligible earnings and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can examine your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the essential types and documentation on your behalf. This consists of finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have evolved over time. These companies remain updated with the current changes and make sure that your filings abide by the most present guidelines. They can likewise provide ongoing assistance if the IRS demands additional details or performs an audit related to your ERC claim.
It’s important to research and vet any company providing ERC filing support to ensure their credibility and expertise. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax specialists who offer ERC filing assistance.
Remember that while these business can provide valuable help, it’s always a good idea to have a basic 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 presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage companies to retain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit businesses, tax-exempt companies, and certain governmental entities. To qualify, employers must fulfill one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of qualified incomes paid to workers, consisting of certain health insurance expenditures. 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, businesses that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. Nevertheless, the exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, allowing eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for organizations to modify prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, generally Type 941. The excess can be refunded to the employer if the credit goes beyond the quantity of employment taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually developed gradually. The very best strategy is to consult with a tax expert or visit the main IRS website for the most updated and detailed details concerning the ERC, consisting of any recent legislative modifications or updates.
To get approved for the ERC, a service must meet among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a considerable decrease is defined as a 20% decrease 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 receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The procedure for claiming the ERC includes finishing the necessary types and including the credit on your employment income tax return (usually Type 941). The exact time it requires to process the credit can differ based upon a number of elements, including the intricacy of your service and the workload of the internal revenue service. It’s recommended to speak with a tax professional for guidance specific to your situation.
There are several companies that can help with the process of claiming the ERC. Some well-known companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based upon basic knowledge and might not reflect the most recent updates or modifications to the ERC. It’s important to consult with a tax professional or visit the official IRS website for the most updated and precise details concerning eligibility, declaring treatments, and offered help.
Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on earnings paid to all staff members whether they actually worked or not. To put it simply, even if the.
workers worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
permitted only for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not just money payments however likewise a portion of the cost of employer.
supplied healthcare. Form 8846 And Employee Retention Credit
Employers can be right away reimbursed for the credit by minimizing the quantity of payroll taxes they.