Lets talk first about Ohio Employee Retention Credit :
Our team here what do these people doing everybody in this space is assisting teach people about ERC and uh constantly provide a gorgeous breakfast and have people truly discover the program we ought to head to the room where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the method I suggest you understand if you simply start to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I imply think of the number of real clients that went through the program yeah this is the very end this is the party 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 customer so that’s how you have the ability to track it you know when you
get this you understand the check is opted for sure which’s when they pay so they don’t pay anything up until they in fact get the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the way they transfer it into their checking account and they can genuinely trust Wonder trust that the procedure has actually been completed and the number of you believe you have actually processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you need 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 Wonderful here you’re at my YouTube channel we’re talking about something actually essential today the employee retention credit which most of you have never ever become aware of I definitely hadn’t heard of it till really just recently and learned a lot about it since this is probably the most affordable expense of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply phone 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 us all about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference 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 all right go on sorry I just need to make certain we got that point I indicate that’s a huge difference a loan versus cash money 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 initial cares Act is the ERC and yes Kevin it is a gorgeous difficult check in the mail where you get real cash from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker retention credit that individual needed 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 staff members right you had to have actually owned a service however it’s based on you having W-2 employees 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 first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the employee’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus since 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 up to five thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of cash it is now there’s a caveat here the PPP money would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace 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 employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the huge concern is why does no one know about this because appearance when I initially became aware of this when I first fulfilled Josh you understand I have actually got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make lots of numerous investments in business owners of which numerous suffered through the pandemic when I first found out about this I called BS I don’t think it since 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 and that were well deserved and we used them wisely to stay alive throughout 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 politician pals Governor Senators they didn’t learn about it I suggest that’s how you know that’s how false information is that there’s no information out there then a lot of people 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 understand about the worker retention credit you understand what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 keep in mind in the original cares act you could refrain from doing 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 refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO know how to do this not really she or he’s never ever done it previously 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 accountant no your accountant’s never done this before unless you have an account that went into this business and bottom line my firm Kevin has actually stayed in business because 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 huge huge business customers have worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
company whose service is completely or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all employers regardless of size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business 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. Once the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying wages varies by whether an employer had, usually, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing support normally provide proficiency and assistance to assist businesses navigate the complicated procedure of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Ohio Employee Retention Credit
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based on elements such as your market, profits, and operations. If you fulfill the requirements for the credit and identify the maximum credit amount you can claim, they can help determine.
Documents and Estimation: ERC filing services will help in collecting the essential paperwork, such as payroll records and monetary statements, to support your claim. They will also assist calculate the credit quantity based upon qualified wages and other certifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can review your past payroll records and financials to identify prospective opportunities for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and submit the required types and documentation on your behalf. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have actually progressed with time. These business remain updated with the current modifications and ensure that your filings comply with the most current standards. They can also supply continuous support if the internal revenue service demands additional information or conducts an audit related to your ERC claim.
It is essential to research and vet any company using ERC filing assistance to ensure their reliability and know-how. Look for recognized firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax specialists who use ERC submitting support.
Keep in mind that while these companies can provide important support, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate businesses to keep and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, companies need to meet one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As mentioned previously, for 2021, a considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts 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 employer’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of qualified wages paid to staff members, consisting of certain health insurance expenditures. 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, companies that got an Income Defense 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 received a PPP loan. The exact 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 enhanced, enabling eligible employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work tax returns, normally Type 941. The excess can be reimbursed to the company if the credit exceeds the quantity of work taxes owed.
It is essential to note that the ERC arrangements and eligibility criteria have actually progressed over time. The very best course of action is to talk to a tax professional or visit the main IRS website for the most updated and detailed information concerning the ERC, including any current legal changes or updates.
To get approved for the ERC, a company needs to satisfy among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a considerable decrease is specified 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% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, however there are some exceptions. For example, government entities and organizations that got a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC includes completing the needed forms and consisting of the credit on your employment tax return (normally Form 941). The exact time it requires to process the credit can vary based on numerous elements, including the complexity of your business and the work of the IRS. It’s advised to speak with a tax professional for assistance specific to your scenario.
There are a number of business that can assist with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some popular companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these business directly to inquire about their charges and services.
Please note that the details supplied here is based on general understanding and might not reflect the most current updates or modifications to the ERC. It is necessary to speak with a tax expert or check out the main internal revenue service website for the most updated and accurate info concerning eligibility, declaring procedures, and readily available assistance.
Less than 100. If the employer had 100 or fewer staff members typically in 2019, then the credit is based.
on incomes paid to all workers whether they actually worked or not. In other words, even if the.
workers worked full time and made money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
permitted just for salaries paid to workers who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply money payments however likewise a portion of the expense of company.
provided health care. Ohio Employee Retention Credit
Companies can be immediately compensated for the credit by lowering the quantity of payroll taxes they.