Lets talk first about Is Employee Retention Credit Still Available :
Our team here what do these people doing everyone in this space is assisting teach people about ERC and uh always provide a beautiful breakfast and have individuals actually learn more about the program we ought to head to the space where we are able to show some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I mean you understand if you simply 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 mean it’s just I indicate consider the number of real clients that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are validated and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you know when you
receive this you understand the check is chosen sure and that’s when they pay so they don’t pay anything till they really receive the cash they do not pay bottom line Wonder trust anything till this letter is validated the check is on the method they transfer it into their bank account and they can really rely on Wonder trust that the process has actually been finished and the number of you think you’ve processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so plainly 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 Wonderful here you’re at my YouTube channel we’re speaking about something really essential today the staff member retention credit which most of you have actually never become aware of I certainly had not heard of it until extremely just recently and learned a lot about it since this is probably the lowest expense of capital for any small company anywhere
anytime if you have employees in between five and five hundred so I have actually got the specialist 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 difficult this isn’t like PPP we just phone your bank supervisor and state give 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 become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund okay go on sorry I simply need to make certain we got that point I mean that’s a huge distinction a loan versus cash cash I like money money that’s what we’re discussing 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 beautiful tough 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 seems like to me if it’s a if it’s worker retention credit that person had to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you had to have owned an organization however it’s based on you having W-2 staff members in America not 10.99. so as long as you had W-2 workers 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 need to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you get back per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s salary to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to a maximum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that 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 approximately five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of money it is now there’s a caution here the PPP cash would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two 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 state 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 internal revenue service so it’s huge obviously now the big concern is why does nobody learn about this because appearance when I first heard about this when I initially satisfied Josh you know I’ve got great deals of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in business owners of which many suffered through the pandemic when I first found out about this I called BS I don’t believe it since I use the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well deserved and we utilized them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even contacted us to my politician buddies Guv Senators they didn’t know about it I mean that’s how you know that’s how misinformation is that there’s no info out there then a bunch of people told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one understand about the worker retention credit you understand what’s fascinating you’re speaking about the banks Kevin because in the PPP loan procedure 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 big 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 process that’s all um and here there was chaos since keep in mind in the initial cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not 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 know how to do this not actually he or she’s never ever done it in the past 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 company your accountant no your accountant’s never ever done this before unless you have an account that entered into this organization and bottom line my company Kevin has actually stayed in business since 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate customers have worked with bottom line to recuperate other federal 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 government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Because of COVID-19 or whose gross receipts, company whose company is fully or partly suspended.
decrease by more than 50%.
1. The credit is offered to all employers despite size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partially 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 similar quarter in 2019. Once the.
employer’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 incomes paid up to $10,000 in overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes differs by whether a company had, usually, basically than.
100 employees in 2019.
Business that focus on ERC filing support generally supply competence and support to help services navigate the complex process of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? Is Employee Retention Credit Still Available
Eligibility Assessment: These companies will evaluate your business’s eligibility for the ERC based upon elements such as your industry, earnings, and operations. They can help figure out if you satisfy the requirements for the credit and recognize the maximum credit quantity you can declare.
Documentation and Estimation: ERC filing services will help in gathering the required documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist calculate the credit quantity based upon eligible incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the essential types and documents in your place. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have actually developed in time. These business remain updated with the latest modifications and make sure that your filings adhere to the most existing standards. They can likewise provide continuous assistance if the IRS demands extra information or carries out an audit related to your ERC claim.
It is essential to research study and veterinarian any business offering ERC filing help to ensure their credibility and knowledge. Try to find recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax specialists who provide ERC filing assistance.
Bear in mind that while these business can supply important support, it’s constantly a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure 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 measures. The objective of the ERC is to encourage organizations to maintain and pay their staff members 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 qualified employers, including for-profit organizations, tax-exempt companies, and particular governmental entities. To qualify, employers should fulfill one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As pointed out earlier, for 2021, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts 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 (as much as 70%) of certified incomes paid to staff members, consisting of specific health insurance costs. The maximum credit per staff member 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 Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got a PPP loan. The same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, permitting qualified employers to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, usually Type 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have actually evolved with time. The best course of action is to speak with a tax professional or visit the official IRS site for the most up-to-date and comprehensive details relating to the ERC, including any current legislative changes or updates.
To qualify for the ERC, a company needs to fulfill one of the following criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline 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 businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Federal government entities and organizations that got a PPP loan may have limitations on declaring the credit.
The process for declaring the ERC involves completing the necessary types and consisting of the credit on your employment tax return (usually Form 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 advised to seek advice from a tax professional for guidance specific to your circumstance.
There are numerous companies that can assist with the process of declaring the ERC. Some widely known companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details supplied here is based on basic understanding and may not reflect the most recent updates or changes to the ERC. It is very important to seek advice from a tax expert or go to the main IRS website for the most up-to-date and accurate information concerning eligibility, claiming treatments, and readily available support.
Less than 100. If the employer had 100 or less employees typically in 2019, then the credit is based.
on earnings paid to all workers whether they really worked or not. In other words, even if the.
employees worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
allowed just for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not simply money payments however also a portion of the cost of employer.
supplied healthcare. Is Employee Retention Credit Still Available
Employers can be immediately repaid for the credit by reducing the quantity of payroll taxes they.