FAQ: Lisa Wilson Employee Retention Credit 2023

Lets talk first about Lisa Wilson Employee Retention Credit :

Our group here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly offer a lovely breakfast and have individuals really learn about the program we must head to the space where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I suggest you know if you just start 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 imply it’s just I indicate consider 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 confirmed 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 know the check is chosen sure which’s when they pay so they do not pay anything until they actually receive the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they transfer it into their savings account and they can genuinely rely on Wonder trust that the process has actually been finished and how many you think you’ve processed since you started this we have to do with 35 000 of these for

 


about six billion dollars wow so plainly they understand what they’re doing and that’s what you require you require 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 speaking about something really important today the staff member retention credit which most of you have actually never become aware of I certainly had not heard of it up until very recently and found out a lot about it because this is most likely the most affordable expense of capital for any small business 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 founder 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 contact 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 inform all of us about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.

correct the cash cash payroll tax refund fine go on sorry I simply need to make sure we got that point I suggest that’s a huge difference a loan versus cash cash I like cash cash that’s what we’re talking about fine 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 difficult check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual had to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have actually owned an organization but it’s based on you having W-2 workers 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined 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 employee that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that happen um they just changed the rules in.

2021 versus since the turmoil of the pandemic so they wanted 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 five thousand Max and after that what takes place 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 since that’s a great deal of cash it is now there’s a caveat here the PPP cash would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment in New York 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 internal revenue service so it’s substantial clearly now the huge question is why does no one learn about this because look when I first found out about this when I initially met Josh you know I’ve got great deals of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous numerous financial investments in business owners of which numerous suffered through the pandemic when I initially found out about this I called BS I do not believe it due to the fact that 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 which were well should have and we utilized them wisely to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even called to my political leader pals Guv Senators they didn’t know about it I imply 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 also not real so let’s ask Josh why does no one know about the employee retention credit you understand what’s intriguing you’re talking about the banks Kevin since 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 nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was turmoil due to the fact that keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the original program and when they changed the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to any person about how to.

do this does your CFO understand how to do this not truly she or he’s never ever done it in the past do the banks do it nope the banks do not do it the payroll companies 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 organization and bottom line my company Kevin has stayed in business since 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate customers have actually worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.

The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, employer whose organization is totally or partly suspended.
decline by more than 50%.
Availability.
1. The credit is offered to all companies despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts go above 80% of a similar 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 wages 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 certifying salaries varies by whether a company had, usually, basically than.
100 employees in 2019.

Companies that specialize in ERC filing assistance normally provide expertise and support to assist companies navigate the complex procedure of claiming the credit. They can offer various services, including:.

 

How is the employee retention credit calculated? Lisa Wilson Employee Retention Credit

Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon aspects such as your market, earnings, and operations. They can assist figure out if you fulfill the requirements for the credit and recognize the optimum credit quantity you can claim.
Documents and Calculation: ERC filing services will assist in gathering the essential documents, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit quantity based upon eligible earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to identify prospective chances for retroactive credits. They can assist you modify prior income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the essential forms and documentation in your place. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have evolved in time. These business stay upgraded with the most recent changes and make sure that your filings adhere to the most present guidelines. If the IRS requests additional details or conducts an audit associated to your ERC claim, they can also offer continuous assistance.
It is essential to research study and veterinarian any company providing ERC filing help to ensure their credibility and know-how. Search for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax professionals who use ERC submitting support.

Keep in mind that while these companies can supply important help, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure precise filings.

The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage services to retain 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 readily available to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and particular governmental entities. To certify, employers need to satisfy one of two criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As mentioned previously, for 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the exact 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 portion (as much as 70%) of qualified incomes paid to staff members, including specific health plan costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that received an Income Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. However, the exact same incomes 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, allowing eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for organizations to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Form 941. The excess can be refunded to the employer if the credit surpasses the amount of employment taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility requirements have progressed with time. The very best course of action is to talk to a tax professional or go to the main IRS website for the most current and in-depth details relating to the ERC, consisting of any current legal modifications or updates.

To receive the ERC, an organization should 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 substantial decline in gross receipts. For 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline 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.
The ERC is available to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and companies that got a PPP loan may have constraints on declaring the credit.

The process for claiming the ERC involves completing the essential forms and consisting of the credit on your employment income tax return (normally Kind 941). The exact time it requires to process the credit can differ based upon numerous factors, including the complexity of your business and the work of the internal revenue service. It’s recommended to consult with a tax professional for guidance specific to your situation.

There are a number of companies that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some widely known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these business straight to inquire about their services and charges.

Please keep in mind that the information supplied here is based on basic knowledge and might not show the most current updates or changes to the ERC. It’s important to speak with a tax expert or visit the main internal revenue service site for the most accurate and current info regarding eligibility, declaring treatments, and offered help.

Less than 100. If the employer had 100 or less employees typically in 2019, then the credit is based.
on wages paid to all workers whether they in fact worked or not. Simply put, even if the.
staff members worked full time and made money for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 workers on average in 2019, then the credit is.
allowed only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply money payments however also a portion of the expense of company.
provided health care. Lisa Wilson Employee Retention Credit
Payment.

Companies can be right away reimbursed for the credit by minimizing the amount of payroll taxes they.