Lets talk first about Pending Employee Retention Credit :
Our team here what do these men doing everyone in this room is helping teach individuals about ERC and uh always supply a stunning breakfast and have people really learn about the program we should head to the room where we have the ability to display some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I mean you understand if you simply 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 suggest it’s just I imply think about 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 validated the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the consumer 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 and that’s when they pay so they don’t pay anything until they actually 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 deposit it into their checking account and they can really trust Wonder trust that the process has been ended up and how many you believe you’ve 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 and that’s what you require you require 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 speaking about something actually essential today the staff member retention credit which most of you have never ever become aware of I definitely had not become aware of it till extremely recently and found out a lot about it since this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have workers between five and five hundred so I have actually got the specialist 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 difficult this isn’t like PPP we just call up your bank manager and say give 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 have actually become yes the Ambassador and paid spokesperson for this I love 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 begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided businesses three opportunities 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 precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund alright go on sorry I just need to make certain we got that point I mean that’s a huge distinction a loan versus money cash I like cash 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 gorgeous hard check in the mail where you get actual cash 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 worker retention credit that individual needed to be a staff member so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have owned a company however it’s based upon you having W-2 staff members in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible 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 six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my preferred part money how much can you return per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s wage to an optimum of seven thousand per quarter how did that happen um they just altered 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 approximately 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 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 because that’s a great deal of cash it is now there’s a caution here the PPP cash would have to be decreased 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 usually Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge clearly now the huge question is why does nobody know about this since appearance when I initially heard about this when I first satisfied Josh you know I have actually got lots of 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 lots of suffered through the pandemic when I initially found out about this I called BS I don’t think it due to the fact that I use 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 been worthy of and we utilized them carefully to survive throughout the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even called to my political leader buddies Guv Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one know about the worker retention credit you know what’s fascinating you’re talking about the banks Kevin due to the fact that in the PPP loan process 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 big banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was mayhem because remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not really she or he’s never done it in the past 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 accountant no your accounting professional’s never ever done this before unless you have an account that went into this business 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 recuperate money for Fortune 500 Fortune 1000 business so a lot of our big huge business clients have actually worked with bottom line to recover other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
employer whose organization is totally or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all companies no matter size including tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To certify, the employer has 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.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the similar quarter in 2019. Once 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 amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of qualifying incomes differs by whether a company had, on average, basically than.
100 employees in 2019.
Companies that focus on ERC filing help usually provide know-how and support to assist services browse the complex procedure of claiming the credit. They can offer different services, including:.
How is the employee retention credit calculated? Pending Employee Retention Credit
Eligibility Assessment: These companies will assess your organization’s eligibility for the ERC based on factors such as your industry, profits, and operations. They can assist figure out if you satisfy the requirements for the credit and determine the maximum credit amount you can declare.
Documents and Computation: ERC filing services will help in gathering the needed documentation, such as payroll records and monetary declarations, to support your claim. They will also help calculate the credit amount based on eligible salaries and other qualifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can examine your past payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you amend prior tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the essential types and paperwork on your behalf. This includes finishing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have actually developed gradually. These companies stay upgraded with the current modifications and guarantee that your filings comply with the most existing standards. They can likewise supply ongoing assistance if the internal revenue service requests additional details or carries out an audit related to your ERC claim.
It is very important to research study and vet any company providing ERC filing assistance to ensure their trustworthiness and competence. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who use ERC submitting support.
Bear in mind that while these companies can supply valuable assistance, it’s always a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to encourage companies to retain 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 businesses, tax-exempt companies, and particular governmental entities. To certify, companies must meet one of two criteria:.
The 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 decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined 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 immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (as much as 70%) of certified salaries paid to workers, consisting of specific 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: Initially, businesses that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they received a PPP loan. The same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing qualified companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to amend prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, typically Form 941. The excess can be reimbursed to the company if the credit goes beyond the quantity of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have evolved gradually. The very best strategy is to speak with a tax expert or go to the official internal revenue service website for the most up-to-date and comprehensive info concerning the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, a service should fulfill one of the following criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. Federal government entities and organizations that got a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC involves finishing the essential forms and including the credit on your work income tax return (typically Form 941). The exact time it takes to process the credit can vary based upon a number of factors, consisting of the intricacy of your organization and the work of the internal revenue service. It’s advised to seek advice from a tax professional for assistance particular to your circumstance.
There are a number of companies that can aid with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll provider. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these companies straight to ask about their services and costs.
Please note that the information provided here is based on general understanding and might not reflect the most current updates or changes to the ERC. It is very important to seek advice from a tax expert or go to the main IRS site for the most accurate and current details regarding eligibility, claiming procedures, and readily available help.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
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 company still gets the credit.
Greater than 100. If the employer had more than 100 employees on average in 2019, then the credit is.
permitted just for incomes paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not simply cash payments but likewise a portion of the cost of company.
provided health care. Pending Employee Retention Credit
Employers can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.