Lets talk first about Legislation Does Govern The Employee Retention Credit :
Our team here what do these people doing everyone in this room is helping teach people about ERC and uh constantly provide a stunning breakfast and have individuals really discover the program we must head to the room where we have the ability to show a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the method I suggest you know if you just start to take a look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I suggest consider the number of 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 customer so that’s how you have the ability to track it you know when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything up until they really get the cash 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 savings account and they can truly trust Wonder trust that the process has been completed and how many you think you have actually processed because you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you need experts 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 discussing something actually important today the worker retention credit which the majority of you have actually never ever become aware of I certainly had not become aware of it until really recently and discovered a lot about it since this is probably the most affordable cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 just call up your bank manager and say offer 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 love this program it’s disappearing soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used services three 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 precisely so the ERC is a refund that’s.
remedy the money money payroll tax refund okay go on sorry I just need to ensure we got that point I indicate that’s a huge difference a loan versus money money 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 original cares Act is the ERC and yes Kevin it is a stunning tough check in the mail where you get actual money from the IRS all right so let’s speak about how it works because it sounds like to me if it’s a if it’s employee retention credit that person needed to be a worker so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have owned a company however it’s based upon you having W-2 workers 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 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 stroll us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one two and 3 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 cash just how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to a maximum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the turmoil 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 5 thousand Max and then what occurs 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 6 thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caution here the PPP money would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s state 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 money you would still get a million dollar in the mail from the IRS so it’s substantial certainly now the big question is why does no one understand about this since appearance when I initially became aware of this when I initially fulfilled Josh you know I’ve got lots of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make numerous many financial investments in business owners of which numerous suffered through the pandemic when I first heard about this I called BS I don’t believe it due to the fact that 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 should have and we used them carefully to survive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t know about it I imply that’s how you know that’s how misinformation is that there’s no information out there then a bunch of people told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one know about the employee retention credit you understand what’s fascinating you’re discussing the banks Kevin because in the PPP loan process 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was mayhem due to the fact that keep in mind in the original cares act you might not do both programs so if you had actually done PPP you could not do ERC in the original 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 actually he or she’s never done it before 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 prior to unless you have an account that entered into this organization and bottom line my firm Kevin has been in business given that 2009 and we’ve been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big huge business customers have actually dealt with bottom line to recuperate other government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property 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 workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose organization is fully or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings differs by whether an employer had, typically, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing help typically offer proficiency and assistance to assist organizations browse the intricate procedure of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Legislation Does Govern The Employee Retention Credit
Eligibility Evaluation: These companies will examine your service’s eligibility for the ERC based upon elements such as your industry, revenue, and operations. They can help determine if you fulfill the requirements for the credit and determine the maximum credit amount you can declare.
Documentation and Calculation: ERC filing services will assist in gathering the needed documentation, such as payroll records and financial statements, to support your claim. They will likewise help determine the credit quantity based upon eligible salaries and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to identify possible chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the needed types and paperwork on your behalf. This includes finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have developed gradually. These business stay upgraded with the latest modifications and make sure that your filings comply with the most current guidelines. They can also offer continuous assistance if the internal revenue service requests additional details or conducts an audit related to your ERC claim.
It’s important to research and vet any company providing ERC filing support to ensure their trustworthiness and knowledge. Search for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who offer ERC filing assistance.
Remember that while these business can offer valuable support, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed choices and make sure precise 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 motivate companies to keep and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit businesses, tax-exempt organizations, and certain governmental entities. To certify, companies need to meet one of two requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. As pointed out earlier, for 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices 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 amounts to a percentage (up to 70%) of qualified salaries paid to workers, including specific health insurance expenditures. 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, businesses that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they received a PPP loan. The very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, permitting eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers an opportunity for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, generally Kind 941. The excess can be reimbursed to the company if the credit exceeds the amount of employment taxes owed.
It is necessary to note that the ERC arrangements and eligibility criteria have developed over time. The best strategy is to seek advice from a tax expert or go to the main internal revenue service website for the most comprehensive and current info regarding the ERC, including any current legal changes or updates.
To receive the ERC, an organization should fulfill one of the following requirements:.
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 receipts. For 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and companies that received a PPP loan may have restrictions on declaring the credit.
The process for declaring the ERC includes completing the essential types and including the credit on your work income tax return (normally Kind 941). The exact time it takes to process the credit can differ based on several aspects, consisting of the complexity of your business and the work of the IRS. It’s recommended to talk to a tax expert for guidance particular to your situation.
There are several companies that can assist with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some well-known companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and call these business straight to ask about their services and charges.
Please keep in mind that the info provided here is based on basic understanding and may not show the most recent updates or changes to the ERC. It is very important to consult with a tax professional or check out the official internal revenue service website for the most precise and up-to-date info concerning eligibility, declaring procedures, and available assistance.
Less than 100. If the employer had 100 or fewer workers usually in 2019, then the credit is based.
on salaries paid to all employees whether they in fact worked or not. To put it simply, even if the.
employees worked full time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for earnings paid to employees who did not work during the calendar quarter.
In both cases, “incomes” includes not simply money payments but likewise a part of the cost of company.
provided healthcare. Legislation Does Govern The Employee Retention Credit
Employers can be immediately reimbursed for the credit by decreasing the amount of payroll taxes they.