Lets talk first about Innovation Refunds Phone Number :
Our team here what do these people doing everybody in this room is helping teach individuals about ERC and uh constantly provide a gorgeous breakfast and have people truly learn about the program we ought to head to the space where we have the ability to display some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I indicate you understand if you just start to take a look at some 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 suggest think of how many real customers 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 client so that’s how you’re able to track it you know when you
get this you know the check is opted for sure and that’s when they pay so they do not pay anything until they actually get the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they transfer it into their savings account and they can truly rely on Wonder trust that the process has actually been completed and how many you believe you’ve processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’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 Fantastic here you’re at my YouTube channel we’re talking about something actually crucial today the worker retention credit which most of you have never ever heard of I certainly had not heard of it till really just recently and discovered a lot about it since this is probably the most affordable cost of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply phone your bank manager and state provide me a loan it does not 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 ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin 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 everyone it makes a big difference right there two 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 have to make sure we got that point I indicate that’s a big distinction a loan versus cash cash I like money cash that’s what we’re discussing all right 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 lovely difficult check in the mail where you get real money from the internal revenue service all right so let’s talk about how it works due to the fact that it seems 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 staff members right you needed to have owned a service however it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible so you have 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 six quarters the program was open well walk us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my favorite part cash 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 staff member’s salary to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to a maximum of 7 thousand per quarter how did that happen um they simply altered the rules in.
2021 versus since 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 up to five thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment 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 undoubtedly now the huge concern is why does nobody learn about this due to the fact that appearance when I initially heard about this when I initially met Josh you understand I have actually got great deals of investments in lots of companies I’m a major advocate for entrepreneurship in America and make many lots of financial investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I do not believe it because 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 stay alive throughout the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even called to my politician 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 details out there then a lot of people told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody understand about the employee retention credit you know what’s fascinating you’re discussing the banks Kevin since in the PPP loan process 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 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 simply procedure process that’s all um and here there was chaos since remember in the original cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to any person about how to.
do this does your CFO know how to do this not actually he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this prior to unless you have an account that entered into this service and bottom line my firm Kevin has stayed in business given that 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our big huge business customers have worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, employer whose organization is totally or partly suspended.
decline by more than 50%.
1. The credit is available to all companies regardless of size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the comparable quarter in 2019. When the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation 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 meaning of qualifying wages varies by whether an employer had, on average, more or less than.
100 employees in 2019.
Business that specialize in ERC filing support generally supply proficiency and support to assist companies navigate the complex process of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Phone Number
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based upon elements such as your industry, income, and operations. They can assist identify if you fulfill the requirements for the credit and identify the maximum credit quantity you can declare.
Paperwork and Computation: ERC filing services will assist in gathering the necessary paperwork, such as payroll records and financial statements, to support your claim. They will also help compute the credit quantity based upon qualified wages and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can review your previous payroll records and financials to identify potential chances for retroactive credits. They can assist you change previous tax returns to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the essential forms and documents on your behalf. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have progressed over time. These business stay updated with the most recent changes and ensure that your filings adhere to the most present guidelines. They can also supply continuous assistance if the internal revenue service demands additional details or conducts an audit related to your ERC claim.
It’s important to research study and vet any business offering ERC filing assistance to ensure their reliability and knowledge. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who provide ERC submitting assistance.
Keep in mind that while these business can supply important assistance, it’s always a great concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and make sure precise 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 encourage services to retain and pay their employees throughout 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, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To qualify, companies should meet one of two criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As pointed out previously, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the very 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 employer’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of certified wages paid to staff members, including specific health plan costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. However, the very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, allowing eligible companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for organizations to change prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment tax returns, usually Type 941. The excess can be refunded to the company if the credit exceeds the quantity of employment taxes owed.
It is necessary to note that the ERC arrangements and eligibility requirements have developed over time. The very best strategy is to consult with a tax professional or go to the official IRS website for the most comprehensive and current info regarding the ERC, including any recent legislative changes or updates.
To get approved for the ERC, a business must satisfy among the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease 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 considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and organizations that received a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC involves completing the necessary types and consisting of the credit on your work income tax return (generally Type 941). The exact time it takes to process the credit can differ based upon a number of elements, including the intricacy of your service and the work of the internal revenue service. It’s suggested to consult with a tax professional for assistance specific to your scenario.
There are numerous companies that can help with the process of claiming the ERC. Some widely known business that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details supplied here is based upon basic understanding and may not show the most recent updates or modifications to the ERC. It is very important to consult with a tax expert or visit the main IRS site for the most accurate and current details concerning eligibility, declaring treatments, and readily available assistance.
Less than 100. If the company had 100 or less workers usually in 2019, then the credit is based.
on incomes paid to all employees whether they actually worked or not. In other words, even if the.
workers 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 employees typically in 2019, then the credit is.
allowed only for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” includes not just money payments but likewise a part of the cost of employer.
supplied healthcare. Innovation Refunds Phone Number
Companies can be right away reimbursed for the credit by reducing the amount of payroll taxes they.