Lets talk first about Rsm Employee Retention Credit :
Our group here what do these people doing everyone in this space is assisting teach individuals about ERC and uh constantly supply a gorgeous breakfast and have people actually find out about the program we need to head to the space where we are able to display a few of the checks that we are getting for business and I wish 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 customers verifying that the check is on the method I imply 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 suggest it’s just I mean 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 verified the numbers are confirmed and the check is on the mail in the mail from the internal revenue service 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 gone for sure and that’s when they pay so they do not pay anything till they actually get the cash they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their savings account and they can truly rely on Wonder trust that the procedure has been ended up and the number of you think you’ve processed since you started this we’re about 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 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 Fantastic here you’re at my YouTube channel we’re discussing something truly crucial today the staff member retention credit which most of you have actually never ever become aware of I definitely had not heard of it until extremely just recently and learned a lot about it because this is most likely the lowest cost of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder 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 simply contact your bank manager and say give me a loan it does not 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’ve ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to learn 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 came up with the cares Act and the cares act offered organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money money payroll tax refund okay go on sorry I simply need to make certain we got that point I mean that’s a huge difference a loan versus money cash I like money money 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 lovely difficult check in the mail where you get actual cash from the internal revenue service all right so let’s talk about how it works because it seems like to me if it’s a if it’s worker retention credit that person had to be a staff member so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for workers right you needed to have owned a company but it’s based upon 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 eligible 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 proper so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part money how much can you return per worker that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’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 income to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wished 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 as much as five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 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 lot of money it is now there’s a caution here the PPP money 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 on average 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 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 huge question is why does no one understand about this since look when I first became aware of this when I initially satisfied Josh you know I have actually got lots of financial investments in great deals of business I’m a major supporter for entrepreneurship in America and make numerous numerous investments in business owners of which lots of suffered through the pandemic when I first found out about this I called BS I do not think it because I utilize 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 and that 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 however when I dug around I even called to my politician good friends Governor Senators they didn’t understand about it I indicate that’s how you understand that’s how false information is that there’s no info out there then a lot of individuals 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 learn about the staff member retention credit you know what’s intriguing you’re speaking about the banks Kevin due to the fact that 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 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 turmoil since keep in mind in the original cares act you might refrain from doing both programs so if you had done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from 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 anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never done it before 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 accounting professional no your accounting professional’s never done this before unless you have an account that entered into this company and bottom line my company Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have dealt with bottom line to recover other federal government programs we have actually 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 federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose service is totally or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all companies no matter size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are determined 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 company’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The definition of qualifying wages varies by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing assistance normally provide know-how and support to help services browse the complex procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Rsm Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based on factors such as your market, earnings, and operations. They can help identify if you satisfy the requirements for the credit and recognize the optimum credit amount you can declare.
Documentation and Computation: ERC filing services will assist in gathering the necessary documents, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit quantity based upon eligible earnings and other qualifying 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 potential opportunities for retroactive credits. They can help you amend prior income tax return to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the necessary types and documents on your behalf. This consists of finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have progressed over time. These business stay upgraded with the most recent modifications and guarantee that your filings comply with the most existing standards. They can likewise supply continuous assistance if the IRS requests additional info or carries out an audit related to your ERC claim.
It’s important to research study and vet any business offering ERC filing help to ensure their reliability and know-how. Search for established companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax experts who offer ERC filing assistance.
Keep in mind that while these business can supply important support, it’s always a good concept 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. government as part of COVID-19 relief measures. The objective of the ERC is to encourage companies to keep and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, companies must satisfy one of two criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a percentage (up to 70%) of qualified wages paid to employees, including specific health insurance 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: At first, businesses that received an Income Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they got a PPP loan. However, the exact same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, enabling qualified employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for businesses to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, generally Type 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of employment taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have evolved in time. The very best course of action is to speak with a tax professional or go to the official internal revenue service website for the most detailed and updated information concerning the ERC, including any current legal changes or updates.
To get approved for the ERC, a company needs to meet one of the following requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. 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 significant decrease is defined 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 readily available to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, federal government entities and services that got a PPP loan might have constraints on declaring the credit.
The process for claiming the ERC includes completing the required forms and including the credit on your employment tax return (normally Type 941). The exact time it takes to process the credit can vary based on numerous factors, consisting of the intricacy of your business and the workload of the IRS. It’s suggested to talk to a tax professional for assistance particular to your circumstance.
There are a number of business that can help with the process of declaring the ERC. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information supplied here is based on general understanding and might not show the most current updates or changes to the ERC. It is necessary to talk to a tax expert or visit the official IRS website for the most current and accurate details regarding eligibility, claiming procedures, and offered assistance.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on earnings paid to all employees whether they in fact worked or not. Simply put, even if the.
staff members worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers on average in 2019, then the credit is.
enabled only for salaries paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments however also a part of the cost of company.
provided healthcare. Rsm Employee Retention Credit
Companies can be instantly repaid for the credit by decreasing the amount of payroll taxes they.