Lets talk first about What Are Innovation Refunds :
Our team here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh constantly provide a beautiful breakfast and have people actually find out 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 numerous millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the method I suggest you understand if you just begin to take a look at some of these here I suggest 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 how many actual 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 verified and the check is on the mail in the mail from the internal revenue service heading to the client 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 till they in fact get the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their savings account and they can truly trust Wonder trust that the process has actually been finished and the number of you think you’ve processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you need 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 Terrific here you’re at my YouTube channel we’re talking about something actually crucial today the worker retention credit which most of you have never ever become aware of I certainly hadn’t heard of it up until very just recently and learned a lot about it due to the fact that this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I have actually 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 hard this isn’t like PPP we just 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 us all about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash money payroll tax refund all right go on sorry I simply need to make certain we got that point I imply that’s a huge difference a loan versus cash money I like money cash 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 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 sounds 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 Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for employees right you had to have actually owned a service but it’s based on you having W-2 workers 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 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 right so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the turmoil of the pandemic so they wished 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 occurs 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would have to be reduced 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 someplace around ten thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial obviously now the huge concern is why does no one understand about this due to the fact that look when I first became aware of this when I first met Josh you understand I have actually got great deals of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially became aware of this I called BS I don’t think it because I utilize the PPP we went through the cash 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 should have and we utilized them carefully to stay alive throughout the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even contacted us to my politician friends Governor Senators they didn’t know about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a lot of people told me well you can’t get it since 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 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 process that’s all um and here there was mayhem since keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered 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 made it clear to anybody about how to.
do this does your CFO understand how to do this not really she or he’s never done it in the past do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever 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 given that 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have actually worked with bottom line to recuperate other federal 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 created to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, employer whose organization is completely or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all employers despite size including tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages varies by whether a company had, usually, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing support normally offer expertise and assistance to help businesses browse the intricate process of claiming the credit. They can use numerous services, including:.
How is the employee retention credit calculated? What Are Innovation Refunds
Eligibility Assessment: These companies will examine your organization’s eligibility for the ERC based on aspects such as your market, revenue, and operations. They can assist figure out if you meet the requirements for the credit and identify the maximum credit quantity you can claim.
Documentation and Computation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial statements, to support your claim. They will also help calculate the credit amount based on qualified wages and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these business can evaluate your previous payroll records and financials to identify possible opportunities for retroactive credits. They can help you change previous tax returns to claim these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the required forms and paperwork in your place. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have progressed in time. These companies stay upgraded with the latest changes and guarantee that your filings adhere to the most current standards. If the Internal revenue service requests extra info or carries out an audit associated to your ERC claim, they can likewise provide ongoing support.
It is very important to research and veterinarian any company providing ERC filing help to ensure their trustworthiness and proficiency. Try to find established firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who use ERC submitting assistance.
Keep in mind that while these companies can supply important help, it’s always a good idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and make sure precise 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 motivate businesses to keep and pay their employees 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, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, companies should fulfill one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As pointed out 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 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.
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 (as much as 70%) of certified earnings paid to workers, including particular health plan expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received an Income Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they got a PPP loan. The very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, permitting eligible companies to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to change prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, usually Type 941. The excess can be refunded to the company if the credit goes beyond the quantity of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have evolved gradually. The best course of action is to consult with a tax professional or visit the official IRS website for the most comprehensive and up-to-date information relating to the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, a company should meet one of the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices compared to the very 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, however there are some exceptions. For instance, government entities and services that got a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes finishing the required kinds and including the credit on your employment tax return (normally Kind 941). The exact time it requires to process the credit can vary based upon a number of factors, consisting of the intricacy of your company and the work of the IRS. It’s suggested to talk to a tax professional for guidance particular to your scenario.
There are several business that can aid with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some well-known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and get in touch with these business directly to inquire about their services and costs.
Please note that the details provided here is based on general knowledge and might not reflect the most current updates or changes to the ERC. It’s important to consult with a tax professional or check out the official IRS site for the most precise and current information concerning eligibility, claiming procedures, and readily available assistance.
Less than 100. If the employer had 100 or less staff members typically in 2019, then the credit is based.
on earnings paid to all workers whether they actually worked or not. To put it simply, even if the.
workers worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 employees typically in 2019, then the credit is.
permitted only for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments however likewise a part of the expense of company.
offered health care. What Are Innovation Refunds
Companies can be immediately reimbursed for the credit by lowering the amount of payroll taxes they.