Lets talk first about Wisconsin Department Of Revenue Employee Retention Credit :
Our group here what do these men doing everybody in this room is helping teach people about ERC and uh constantly offer a stunning breakfast and have people really learn about the program we ought to head to the room where we are able to display some of the checks that we are getting for business 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 replicate copies of the letters that go to clients validating that the check is on the method I imply you understand if you just begin to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I indicate consider how many actual clients that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are validated 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 chosen sure which’s when they pay so they don’t pay anything till they in fact receive the cash they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their bank account and they can truly trust Wonder trust that the process has been finished and the number of you believe you’ve processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’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 Fantastic here you’re at my YouTube channel we’re speaking about something actually crucial today the staff member retention credit which most of you have actually never ever heard of I certainly hadn’t heard of it till very just recently and discovered a lot about it because this is probably the most affordable expense of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I’ve got the professional 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 not easy 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 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 disappearing very soon you got to discover everything about it let’s talk worker 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 used services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone 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.
correct the cash cash payroll tax refund fine go on sorry I just have to ensure we got that point I suggest that’s a big distinction a loan versus money money I like cash cash that’s what we’re speaking 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 stunning hard check in the mail where you get real money from the IRS all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s worker retention credit that individual needed to be an employee 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 owned a service but it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 workers 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 first six 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 three and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my favorite part cash how much can you get back per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of seven 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 employees 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 occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a great deal of money it is now there’s a caveat here the PPP money would need to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s state 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 IRS so it’s substantial obviously now the huge question is why does no one understand about this because appearance when I initially heard about this when I initially met Josh you know I’ve got great deals of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous lots of financial investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe it due to the fact that I use 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 deserved and we used them sensibly to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t know about it I suggest that’s how you know that’s how false information is that there’s no information out there then a bunch of individuals told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody learn about the worker retention credit you know what’s interesting you’re talking about the banks Kevin because 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 process 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 due to the fact that remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the original 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 ever made it clear to anyone about how to.
do this does your CFO understand how to do this not truly he or she’s never ever done it in the past do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accountant’s never done this before unless you have an account that went into this business and bottom line my company Kevin has been in business since 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 lot of our big huge corporate clients have actually worked with bottom line to recuperate other government programs we’ve done sales tax and use tax unemployment tax work chance 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.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Because of COVID-19 or whose gross invoices, employer whose business is fully or partly suspended.
decline by more than 50%.
1. The credit is offered to all companies regardless of size consisting of tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. When the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings varies by whether a company had, typically, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing assistance generally provide expertise and support to help businesses browse the complicated process of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Wisconsin Department Of Revenue Employee Retention Credit
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based on elements such as your industry, profits, and operations. They can help figure out if you meet the requirements for the credit and determine the optimum credit quantity you can claim.
Documentation and Estimation: ERC filing services will assist in collecting the essential documents, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit quantity based on eligible salaries and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can evaluate your previous payroll records and financials to determine potential opportunities for retroactive credits. They can assist you change previous tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the needed types and paperwork in your place. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have progressed with time. These companies remain updated with the latest changes and make sure that your filings abide by the most current standards. They can likewise provide continuous assistance if the IRS demands additional information or performs an audit related to your ERC claim.
It is very important to research study and vet any business using ERC filing help to ensure their reliability and proficiency. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax professionals who offer ERC filing assistance.
Keep in mind that while these companies can offer valuable assistance, it’s constantly 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. government as part of COVID-19 relief procedures. The goal of the ERC is to motivate services to retain and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit services, tax-exempt organizations, and specific governmental entities. To certify, companies need to fulfill one of two requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As pointed out previously, for 2021, a substantial decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Amount: 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 qualified earnings paid to staff members, including specific health insurance costs. The optimum 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, organizations that got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. The same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, permitting qualified employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to amend prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the company.
It is very important to note that the ERC provisions and eligibility criteria have actually evolved with time. The very best course of action is to consult with a tax professional or visit the official IRS site for the most current and detailed info concerning the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, an organization must satisfy among the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the 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, however there are some exceptions. For instance, federal government entities and services that got a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC involves completing the essential types and consisting of the credit on your work income tax return (typically Form 941). The exact time it requires to process the credit can vary based upon numerous factors, consisting of the complexity of your organization and the work of the IRS. It’s advised to consult with a tax professional for assistance specific to your scenario.
There are numerous business that can assist with the procedure of declaring the ERC. Some popular business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details supplied here is based upon general understanding and may not show the most current updates or changes to the ERC. It is necessary to speak with a tax expert or visit the main internal revenue service website for the most precise and updated details relating to eligibility, claiming treatments, and offered assistance.
Less than 100. If the company had 100 or fewer workers typically in 2019, then the credit is based.
on wages paid to all staff members whether they in fact 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. The credit is if the employer had more than 100 employees on average in 2019.
permitted just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply money payments but also a portion of the cost of company.
provided healthcare. Wisconsin Department Of Revenue Employee Retention Credit
Companies can be right away reimbursed for the credit by lowering the amount of payroll taxes they.