Lets talk first about New Stimulus Bill Employee Retention Credit :
Our group here what do these men doing everybody in this room is assisting teach individuals about ERC and uh constantly supply a beautiful breakfast and have people actually discover the program we must head to the space where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I imply you know if you just start to take a look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest think of 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 validated the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything till they in fact get the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their savings account and they can truly rely on Wonder trust that the process has actually been finished and the number of you believe you have actually processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you require you require 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 Wonderful here you’re at my YouTube channel we’re speaking about something actually important today the employee retention credit which the majority of you have actually never ever heard of I definitely hadn’t heard of it until really just recently and found out a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 just phone your bank supervisor and say give me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away soon you got to learn 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 came up with the cares Act and the cares act used organizations three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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 cash cash payroll tax refund alright go on sorry I just have to ensure we got that point I mean that’s a big distinction a loan versus cash cash I like cash cash that’s what we’re speaking about okay 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 beautiful difficult check in the mail where you get real 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 had 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 employees right you had to have actually owned a business however it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 employees 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 first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part money how much can you return per worker 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 five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus since the turmoil 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 up to 5 thousand Max and then what happens 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a great deal of money it is now there’s a caution here the PPP cash would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state 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 huge certainly now the big concern is why does nobody understand about this because appearance when I initially found out about this when I initially fulfilled Josh you know I have actually got lots of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous lots of financial investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I do not believe it since I utilize the PPP we went through the money 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 carefully to stay alive during the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even called to my politician pals Governor Senators they didn’t understand about it I imply that’s how you understand that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one learn about the worker retention credit you know what’s intriguing you’re talking about 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 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 simply process procedure that’s all um and here there was chaos because remember in the initial cares act you could not do both programs so if you had actually done PPP you could refrain from doing ERC in the initial 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 government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not truly he or she’s never ever done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this service and bottom line my firm Kevin has been in business since 2009 and we have actually been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have worked with bottom line to recover other federal government programs we have actually 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 worker retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose business is totally or partially suspended.
decline by more than 50%.
1. The credit is offered to all companies no matter size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is totally or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes varies by whether a company had, on average, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing support typically provide competence and assistance to assist organizations navigate the complicated process of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? New Stimulus Bill Employee Retention Credit
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based on aspects such as your market, profits, and operations. They can assist identify if you satisfy the requirements for the credit and identify the optimum credit amount you can declare.
Documentation and Calculation: ERC filing services will help in gathering the required documents, such as payroll records and monetary statements, to support your claim. They will also help compute the credit quantity based upon qualified salaries and other certifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can evaluate your past payroll records and financials to recognize possible chances for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the essential forms and documents in your place. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed with time. These companies stay updated with the latest changes and guarantee that your filings adhere to the most present guidelines. If the IRS demands extra info or carries out an audit associated to your ERC claim, they can likewise supply ongoing assistance.
It’s important to research and vet any business providing ERC filing help to guarantee their reliability and knowledge. Search for recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax experts who offer ERC submitting support.
Remember that while these companies can supply valuable support, it’s always a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage businesses to retain and pay their staff members 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 services, tax-exempt organizations, and specific governmental entities. To certify, employers should meet one of two requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As discussed previously, for 2021, a considerable decline is specified 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 very same quarter in 2019, or a 20% decrease in gross receipts 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 is equal to a portion (approximately 70%) of qualified earnings paid to staff members, consisting of particular health insurance expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. The exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, enabling eligible employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for companies to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment income tax return, typically Type 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the employer.
It is very important to note that the ERC arrangements and eligibility criteria have progressed over time. The best strategy is to speak with a tax expert or go to the official internal revenue service website for the most updated and in-depth info relating to the ERC, consisting of any recent legal modifications or updates.
To qualify for the ERC, a service should fulfill one of the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and services that received a PPP loan might have limitations on declaring the credit.
The process for claiming the ERC includes finishing the necessary types and consisting of the credit on your employment income tax return (usually Kind 941). The exact time it takes to process the credit can differ based on several factors, including the intricacy of your organization and the work of the internal revenue service. It’s suggested to consult with a tax expert for guidance specific to your scenario.
There are numerous business that can assist with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some widely known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and call these business directly to ask about their costs and services.
Please note that the details offered here is based upon general knowledge and may not show the most recent updates or changes to the ERC. It’s important to speak with a tax professional or check out the main internal revenue service website for the most updated and accurate information relating to eligibility, claiming procedures, and offered support.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on incomes paid to all employees whether they actually worked or not. To put it simply, even if the.
workers worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled just for salaries paid to employees who did not work during the calendar quarter.
In both cases, “earnings” includes not simply money payments however likewise a portion of the expense of company.
provided health care. New Stimulus Bill Employee Retention Credit
Companies can be instantly reimbursed for the credit by lowering the quantity of payroll taxes they.