Lets talk first about Minister Wages Employee Retention Credit :
Our group here what do these people doing everyone in this room is helping teach people about ERC and uh always offer a beautiful breakfast and have individuals actually learn about the program we need to head to the space where we are able to display 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 countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I imply you know if you just begin to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I indicate think about the number of actual 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 confirmed and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure and that’s when they pay so they don’t pay anything until they actually get the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their bank account and they can genuinely rely on Wonder trust that the procedure has been completed and how many you believe you’ve processed because you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing and that’s what you need you require professionals 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly crucial today the employee retention credit which most of you have actually never become aware of I certainly hadn’t heard of it up until very recently and found out a lot about it since this is probably the lowest cost of capital for any small business anywhere
anytime if you have workers between 5 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 Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just phone your bank supervisor 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’ve become yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to discover everything about it let’s talk staff member 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 provided businesses 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 2 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 fine go on sorry I just need to make certain we got that point I imply that’s a big distinction a loan versus money money I like money cash 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 lovely tough check in the mail where you get real cash from the IRS all right so let’s speak about how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that person had to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have owned a service 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 qualified 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 right 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 2 and 3 of 2021. fine so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part money just how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus because the chaos of the pandemic so they wanted to even get more to keep those employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately 5 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 worker that is because that’s a great deal of cash it is now there’s a caution here the PPP cash would have to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around 10 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 internal revenue service so it’s substantial obviously now the big question is why does nobody know about this because look when I initially became aware of this when I initially satisfied Josh you understand I’ve got great deals of investments in great deals of business I’m a major advocate for entrepreneurship in America and make many numerous investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I do not think it since 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 which were well been worthy of and we used them wisely to survive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation 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 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 very 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 just procedure process that’s all um and here there was chaos because keep in mind in the original cares act you could not do both programs so if you had 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 made it clear to any person about how to.
do this does your CFO know how to do this not really he or she’s never ever done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never done this prior to unless you have an account that went into this business and bottom line my firm Kevin has stayed in business considering that 2009 and we’ve 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 huge big corporate clients have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
employer whose service is totally or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Availability.
1. The credit is offered to all companies regardless of size including tax exempt companies. There are.
only two 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 satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying salaries differs by whether a company had, on average, basically than.
100 workers in 2019.
Business that focus on ERC filing help usually offer expertise and support to assist organizations navigate the complex procedure of claiming the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Minister Wages Employee Retention Credit
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based on elements such as your market, revenue, and operations. They can help determine if you fulfill the requirements for the credit and identify the optimum credit quantity you can declare.
Documentation and Estimation: ERC filing services will help in collecting the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit quantity based on qualified incomes and other certifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can review your past payroll records and financials to determine potential chances for retroactive credits. They can help you amend prior tax returns to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the necessary kinds and documentation in your place. This includes completing Kind 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have evolved with time. These business stay updated with the latest changes and make sure that your filings abide by the most present guidelines. If the IRS requests extra info or conducts an audit associated to your ERC claim, they can also offer continuous assistance.
It is very important to research study and veterinarian any business using ERC filing help to ensure their reliability and knowledge. Look for established firms with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax experts who offer ERC filing support.
Bear in mind that while these companies can offer valuable assistance, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and make sure precise filings.
The Employee 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 organizations to maintain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, companies should meet one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned earlier, for 2021, a significant decline is specified 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% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away 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 earnings paid to employees, including certain health plan expenses. The optimum 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 an Income Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they got a PPP loan. The exact same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, allowing eligible companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to change prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, generally Form 941. The excess can be refunded to the employer if the credit goes beyond the amount of work taxes owed.
It is very important to note that the ERC arrangements and eligibility requirements have developed with time. The best strategy is to speak with a tax professional or visit the official internal revenue service website for the most up-to-date and in-depth info relating to the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, a company needs to meet among the following criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline 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.
The ERC is offered to organizations of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and services that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes completing the required forms and including the credit on your work income tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon numerous elements, including the intricacy of your organization and the workload of the internal revenue service. It’s suggested to speak with a tax expert for guidance specific to your circumstance.
There are numerous companies that can help with the process of claiming the ERC. Some popular companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details supplied here is based on basic understanding and might not show the most current updates or changes to the ERC. It is very important to speak with a tax professional or check out the official internal revenue service site for the most current and precise info regarding eligibility, claiming treatments, and offered help.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on earnings paid to all employees whether they really worked or not. Simply put, even if the.
workers worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
allowed just for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply money payments however likewise a portion of the cost of employer.
supplied healthcare. Minister Wages Employee Retention Credit
Payment.
Employers can be instantly compensated for the credit by lowering the quantity of payroll taxes they.