Lets talk first about Supply Chain Disruption And Employee Retention Credit :
Our team here what do these guys doing everyone in this space is helping teach people about ERC and uh constantly offer a gorgeous breakfast and have people really learn about the program we must head to the space where we have the ability to display a few 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 literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I indicate you know if you just begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I mean think about the number of actual customers 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 validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
receive this you understand the check is gone for sure which’s when they pay so they do not pay anything up until they in fact get the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their savings account and they can truly rely on Wonder trust that the process has actually been ended up and how many you believe you’ve processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you need you need 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 crucial today the worker retention credit which most of you have actually never ever become aware of I definitely had not heard of it up until really just recently and learned a lot about it since this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call your bank supervisor and state 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 have actually ended up being yes the Ambassador and paid representative for this I love this program it’s going away soon you got to find out everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund fine go on sorry I simply need to make certain we got that point I indicate that’s a big difference a loan versus cash money I like money cash that’s what we’re talking about fine 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 beautiful tough check in the mail where you get real money from the IRS all right so let’s talk about how it works since it seems like to me if it’s a if it’s staff member retention credit that person had to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you had to have owned an organization however it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 employees 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 first 6 months of 2021 on the W-2 right so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that take place um they just altered 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 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 after that what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of money it is now there’s a caveat here the PPP cash would need to be reduced 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 typically Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the big question is why does nobody know about this due to the fact that look when I first found out about this when I first fulfilled Josh you understand I have actually got great deals of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I do not believe it since I use 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 which were well deserved and we utilized them carefully to survive during the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my political leader good friends Guv Senators they didn’t understand about it I suggest that’s how you know that’s how misinformation is that there’s no info out there then a lot of people told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody understand about the employee retention credit you know what’s fascinating you’re talking about the banks Kevin since in the PPP loan process the federal government made it extremely 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 process that’s all um and here there was turmoil since keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you could not do ERC in the original program and when they changed the law in 2021 the banks were not doing ERC because 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 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 company your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this organization and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other 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 as much as $10,000 in incomes paid by an.
employer whose company is completely or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Schedule.
1. The credit is available to all companies despite size including tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying wages differs by whether a company had, typically, more or less than.
100 staff members in 2019.
Business that focus on ERC filing assistance normally offer know-how and assistance to help organizations navigate the intricate procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Supply Chain Disruption And Employee Retention Credit
Eligibility Evaluation: These business will evaluate your company’s eligibility for the ERC based on aspects such as your industry, income, and operations. If you fulfill the requirements for the credit and determine the maximum credit amount you can claim, they can assist identify.
Documentation and Estimation: ERC filing services will help in gathering the needed documentation, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based on qualified wages and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the essential forms and documentation on your behalf. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have evolved with time. These business stay updated with the most recent modifications and guarantee that your filings abide by the most existing guidelines. If the IRS requests additional information or carries out an audit related to your ERC claim, they can also supply continuous support.
It’s important to research and veterinarian any business using ERC filing support to ensure their trustworthiness and proficiency. Try to find recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who use ERC filing assistance.
Remember that while these business can provide valuable help, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified choices and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to motivate services to keep and pay their staff members during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, employers must fulfill one of two requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. As pointed out previously, for 2021, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of certified salaries paid to workers, including specific health plan costs. 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, services that got an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they received a PPP loan. The exact same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, permitting eligible companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to change prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit goes beyond the amount of employment taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC arrangements and eligibility criteria have actually evolved over time. The very best course of action is to consult with a tax expert or go to the main IRS site for the most current and comprehensive info regarding the ERC, including any current legislative modifications or updates.
To get approved for the ERC, an organization should meet one of the following criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a substantial decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline 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.
The ERC is available to services of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and services that received a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC involves finishing the necessary kinds and consisting of the credit on your employment income tax return (typically Form 941). The exact time it takes to process the credit can vary based upon several factors, including the complexity of your business and the work of the IRS. It’s advised to speak with a tax expert for guidance particular to your scenario.
There are a number of business that can assist with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some popular companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and get in touch with these business directly to inquire about their services and costs.
Please keep in mind that the details provided here is based on general understanding and may not show the most recent updates or modifications to the ERC. It is necessary to talk to a tax professional or go to the official IRS site for the most current and precise information concerning eligibility, claiming procedures, and offered assistance.
Less than 100. If the company had 100 or less staff members usually in 2019, then the credit is based.
on wages paid to all employees whether they in fact worked or not. To put it simply, even if the.
staff members worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
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 but likewise a part of the cost of company.
provided healthcare. Supply Chain Disruption And Employee Retention Credit
Payment.
Employers can be right away compensated for the credit by minimizing the amount of payroll taxes they.