Lets talk first about How Do I File For The Employee Retention Credit :
Our group here what do these men doing everyone in this room is assisting teach individuals about ERC and uh constantly supply a beautiful breakfast and have individuals truly discover the program we must head to the room where we are able to show some of the checks that we are getting for business and I ‘d like 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 verifying that the check is on the method I imply you know if you just begin to look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I mean think about how many real clients that went through the program yeah this is the very end this is the celebration 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 have the ability to track it you understand when you
receive this you understand the check is gone for sure which’s when they pay so they do not pay anything until they in fact receive the money they do not pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their bank account and they can really trust Wonder trust that the process has actually been ended up and the number of you think you have actually processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know 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 one of these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re discussing something truly crucial today the worker retention credit which the majority of you have never become aware of I definitely hadn’t become aware of it until extremely just recently and learned a lot about it since this is probably the lowest cost of capital for any small company anywhere
anytime if you have staff members between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 simply contact 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 us all about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very soon you got to discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used organizations 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 huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund okay go on sorry I just need to ensure we got that point I mean that’s a huge difference a loan versus money money I like money cash 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 initial cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member 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 employees right you needed to have actually owned a service but it’s based upon you having W-2 workers 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 six months of 2021 on the W-2 correct 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. okay so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part money how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s salary to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to an optimum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the chaos 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 employee that is because that’s a great deal of money it is now there’s a caveat here the PPP money would need to be decreased 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 usually Kevin is if you took PPP cash someplace around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city 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 IRS so it’s huge undoubtedly now the big concern is why does nobody know about this since appearance when I first found out about this when I initially fulfilled Josh you know I’ve got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I don’t think it because I use 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 used them wisely to survive during the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader friends Governor Senators they didn’t learn about it I suggest that’s how you know that’s how false information is that there’s no info out there then a lot 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 understand about the staff member retention credit you understand what’s fascinating you’re discussing the banks Kevin because 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 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 simply procedure procedure that’s all um and here there was chaos since keep in mind in the initial cares act you might refrain from doing both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered 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 understand how to do this not truly he or she’s never done it previously do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accountant’s never ever done this prior to unless you have an account that entered into this company and bottom line my company Kevin has been in business given that 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have dealt with bottom line to recover other government programs we have actually 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 designed to motivate.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
company whose service is fully or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all employers 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 company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partially 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. Once the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The definition of certifying incomes differs by whether an employer had, typically, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing help generally provide proficiency and assistance to assist businesses navigate the complex procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? How Do I File For The Employee Retention Credit
Eligibility Evaluation: These companies will assess your company’s eligibility for the ERC based on factors such as your market, income, and operations. If you satisfy the requirements for the credit and determine the optimum credit quantity you can declare, they can help figure out.
Documentation and Calculation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will likewise assist calculate the credit quantity based on eligible incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to identify prospective opportunities for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the required kinds and documents in your place. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed in time. These companies remain updated with the latest modifications and make sure that your filings adhere to the most present guidelines. They can likewise offer ongoing assistance if the IRS requests extra details or conducts an audit related to your ERC claim.
It is necessary to research study and vet any company providing ERC filing assistance to guarantee their credibility and knowledge. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who provide ERC filing support.
Bear in mind that while these business can supply valuable assistance, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure 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 goal of the ERC is to motivate services to retain and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit businesses, tax-exempt companies, and specific governmental entities. To qualify, companies must satisfy one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed previously, for 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts 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 amounts to a percentage (up to 70%) of qualified wages paid to workers, consisting of specific 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, organizations that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they received a PPP loan. The exact same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting eligible companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides a chance for businesses to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, generally Form 941. The excess can be refunded to the company if the credit exceeds the amount of work taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually evolved with time. The best strategy is to talk to a tax professional or visit the official IRS site for the most detailed and updated information regarding the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, an organization should meet among the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the exact 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% decline in gross invoices compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and services that got a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC includes finishing the required kinds and consisting of the credit on your work income tax return (typically Kind 941). The exact time it requires to process the credit can vary based on a number of aspects, including the intricacy of your service and the workload of the internal revenue service. It’s recommended to speak with a tax expert for assistance particular to your scenario.
There are several companies that can help with the process of declaring the ERC. Some well-known companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based on general knowledge and may not show the most current updates or modifications to the ERC. It is very important to consult with a tax professional or visit the main internal revenue service site for the most updated and precise details regarding eligibility, claiming treatments, and offered assistance.
Less than 100. If the company had 100 or less staff members usually in 2019, then the credit is based.
on earnings paid to all employees whether they in fact worked or not. To put it simply, even if the.
employees worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 staff members usually in 2019, then the credit is.
enabled just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just cash payments however also a portion of the cost of company.
offered healthcare. How Do I File For The Employee Retention Credit
Employers can be immediately reimbursed for the credit by lowering the quantity of payroll taxes they.