Lets talk first about Get Employee Retention Credit :
Our group here what do these people doing everybody in this room is assisting teach people about ERC and uh always provide a lovely breakfast and have people actually learn more about the program we must head to the space where we have the ability to show some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I mean you know if you just start to take a 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 just 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 confirmed the numbers are verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you have the ability to track it you know when you
receive this you know the check is opted for sure and that’s when they pay so they don’t pay anything up until they really receive the money they do not pay bottom line Wonder trust anything till this letter is verified the check is on the way they transfer it into their checking account and they can truly trust Wonder trust that the procedure has actually been completed and how many you believe you have actually processed considering that you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you require you require specialists 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 Fantastic here you’re at my YouTube channel we’re speaking about something actually essential today the staff member retention credit which most of you have actually never ever heard of I certainly hadn’t heard of it till really just recently and found out a lot about it since this is probably the most affordable cost of capital for any small company 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 creator and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply call up your bank supervisor and say give me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they created 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 practically everybody it makes a huge difference right there two of them are loans and one’s a refund precisely 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 mean that’s a huge difference a loan versus cash cash I like money money that’s what we’re talking 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 hard check in the mail where you get actual money 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 individual had 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 shareholders it’s for staff members right you needed to have actually owned a company however it’s based upon you having W-2 staff members 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 eligible so you need 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 six quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part money how much can you return per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to a maximum of seven thousand per quarter how did that occur um they simply changed the rules in.
2021 versus due to the fact that the turmoil 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 after that what happens 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member 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 lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around ten 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 employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial obviously now the huge question is why does no one understand about this because appearance when I initially found out about this when I first satisfied Josh you know I’ve got lots of investments in great deals of business I’m a major advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it due to the fact that I use the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we used them wisely to stay alive during the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t know about it I imply that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody understand about the staff member retention credit you understand what’s interesting you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it extremely 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was mayhem since keep in mind in the original cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the original program and when they changed 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 government never made it clear to anyone about how to.
do this does your CFO understand how to do this not really he or she’s never done it previously do the banks do it nope the banks do not do it the payroll companies yeah some 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 business and bottom line my firm Kevin has actually been in business considering that 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have actually worked with bottom line to recover other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose organization is fully or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all companies despite size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s company is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying earnings varies by whether a company had, typically, basically than.
100 workers in 2019.
Companies that concentrate on ERC filing help normally offer know-how and support to assist organizations navigate the complex procedure of claiming the credit. They can offer different services, including:.
How is the employee retention credit calculated? Get Employee Retention Credit
Eligibility Evaluation: These business will assess your company’s eligibility for the ERC based on elements such as your industry, earnings, and operations. They can assist determine if you satisfy the requirements for the credit and determine the maximum credit quantity you can claim.
Documentation and Calculation: ERC filing services will assist in collecting the required paperwork, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit quantity based on eligible earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize possible chances for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the required kinds and documents on your behalf. This consists of finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have evolved gradually. These business stay updated with the latest changes and guarantee that your filings adhere to the most existing guidelines. If the Internal revenue service requests extra information or carries out an audit related to your ERC claim, they can also offer continuous assistance.
It’s important to research study and vet any company providing ERC filing support to guarantee their credibility and know-how. Try to find recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax specialists who offer ERC submitting support.
Keep in mind that while these companies can supply important assistance, it’s constantly a good idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and ensure accurate filings.
The Worker 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 businesses to maintain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, consisting of for-profit businesses, tax-exempt organizations, and specific governmental entities. To certify, companies should meet one of two criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
Credit Amount: 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 (as much as 70%) of certified earnings paid to employees, consisting of particular health plan expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they received 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 actually been retroactively broadened and boosted, allowing eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision provides an opportunity for organizations to modify prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, generally Kind 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It is essential to note that the ERC provisions and eligibility requirements have developed in time. The very best course of action is to speak with a tax professional or visit the official internal revenue service site for the most current and detailed info relating to the ERC, consisting of any recent legal modifications or updates.
To qualify for the ERC, an organization should meet among the following criteria:.
The business operations were fully or partially 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 receipts compared to the 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 invoices compared to the right away preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt companies, but there are some exceptions. For example, federal government entities and services that got a PPP loan might have constraints on claiming the credit.
The procedure for claiming the ERC includes completing the necessary kinds and consisting of the credit on your employment tax return (usually Kind 941). The exact time it requires to process the credit can differ based upon several aspects, including the complexity of your service and the workload of the IRS. It’s recommended to talk to a tax professional for assistance specific to your situation.
There are several business that can aid with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some well-known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these business directly to ask about their services and charges.
Please note that the info supplied here is based upon basic understanding and may not reflect the most current updates or modifications to the ERC. It is necessary to seek advice from a tax expert or check out the official IRS website for the most precise and current information regarding eligibility, declaring treatments, and offered support.
Less than 100. If the company had 100 or less workers on average in 2019, then the credit is based.
on incomes paid to all workers whether they actually worked or not. To put it simply, even if the.
workers 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 workers usually in 2019, then the credit is.
permitted just for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just money payments however also a part of the expense of company.
provided health care. Get Employee Retention Credit
Employers can be immediately repaid for the credit by decreasing the amount of payroll taxes they.