Lets talk first about Zzerc – Employee Retention Credit :
Our team here what do these people doing everyone in this space is helping teach individuals about ERC and uh always supply a beautiful breakfast and have individuals really learn more about the program we ought to head to the room where we have the ability to show some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I suggest you know if you just begin to take a look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I mean consider the number of real customers 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 IRS heading to the client so that’s how you have the ability to track it you understand when you
get this you understand the check is opted for sure and that’s when they pay so they do not pay anything up until they really get the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can truly trust Wonder trust that the procedure has actually been finished and the number of you think you’ve processed because you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly 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 among 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 become aware of I certainly had not become aware of it till extremely just recently and learned a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator 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 simply contact your bank supervisor and state provide 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 become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies 3 chances 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 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund okay go on sorry I simply need to make certain we got that point I suggest that’s a huge distinction a loan versus money money I like money cash that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get real cash from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual needed 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 staff members right you had to have owned a service however it’s based on you having W-2 staff members 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 qualified so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six months of 2021 on the W-2 appropriate so there were 6 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 two and three of 2021. fine so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part cash how much can you return per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus because 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 as much as 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of cash it is now there’s a caution here the PPP money would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically 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 City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge certainly now the huge concern is why does nobody learn about this because look when I initially heard about this when I first satisfied Josh you know I have actually got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many numerous 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 since I utilize the PPP we went through the cash 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 wisely to survive during the pandemic so when I heard about this I stated nah it can’t be true however when I dug around I even called to my politician pals Governor Senators they didn’t learn about it I imply that’s how you understand that’s how false information is that there’s no details out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does nobody know about the worker retention credit you understand what’s fascinating 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 huge 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 simply procedure process that’s all um and here there was turmoil since remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you could 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 made it clear to any person about how to.
do this does your CFO know 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 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 entered into this organization and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients have actually 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 property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
employer whose business is fully or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Schedule.
1. The credit is offered to all employers regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the comparable quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It is effective for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying salaries differs by whether an employer had, typically, more or less than.
100 staff members in 2019.
Business that focus on ERC filing help typically supply knowledge and assistance to assist businesses browse the intricate procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Zzerc – Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your service’s eligibility for the ERC based on elements such as your market, revenue, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can declare, they can help identify.
Documents and Estimation: ERC filing services will help in collecting the required documents, such as payroll records and financial statements, to support your claim. They will also help calculate the credit amount based upon qualified earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can review your past payroll records and financials to determine prospective chances for retroactive credits. They can assist you amend previous income tax return to claim these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and send the needed forms and paperwork on your behalf. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually developed in time. These business stay upgraded with the latest changes and guarantee that your filings comply with the most present guidelines. If the IRS requests additional information or conducts an audit related to your ERC claim, they can also offer continuous support.
It’s important to research study and vet any business providing ERC filing assistance to guarantee their trustworthiness and proficiency. Look for established companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who use ERC submitting support.
Bear in mind that while these business can supply important support, it’s constantly a good idea to have a fundamental 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 steps. The goal of the ERC is to encourage organizations to maintain and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, companies should fulfill one of two criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline 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 amounts to a percentage (up to 70%) of certified earnings paid to staff members, including certain health insurance costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. Nevertheless, the very same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, permitting qualified employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for services to modify prior-year income tax return and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment tax returns, typically Type 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of work taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have actually developed gradually. The best course of action is to speak with a tax expert or go to the main internal revenue service website for the most in-depth and current details concerning the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, an organization must meet among the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt organizations, however there are some exceptions. For instance, federal government entities and businesses that received a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC includes finishing the needed kinds and including the credit on your work tax return (typically Form 941). The exact time it requires to process the credit can vary based on a number of elements, including the intricacy of your company and the work of the internal revenue service. It’s suggested to seek advice from a tax expert for assistance specific to your circumstance.
There are numerous companies that can assist with the procedure of declaring the ERC. Some popular companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based upon general knowledge and might not reflect the most current updates or modifications to the ERC. It is essential to talk to a tax professional or visit the official IRS site for the most updated and precise details relating to eligibility, declaring procedures, and offered support.
Less than 100. If the company had 100 or fewer staff members usually in 2019, then the credit is based.
on incomes paid to all staff members whether they in fact worked or not. In other words, even if the.
employees worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
enabled only for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply money payments but also a portion of the expense of company.
supplied healthcare. Zzerc – Employee Retention Credit
Payment.
Employers can be right away repaid for the credit by minimizing the amount of payroll taxes they.