Lets talk first about 3Rd Quarter Employee Retention Credit :
Our group here what do these men doing everybody in this room is helping teach people about ERC and uh always provide a gorgeous breakfast and have individuals truly discover 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 business and I want to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I suggest you understand if you simply start to 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 imply it’s simply I imply 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 IRS heading to the consumer so that’s how you have the ability to track it you know when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything till they really receive the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they transfer it into their bank account and they can genuinely rely on Wonder trust that the procedure has been ended up and how many you believe you’ve processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand 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 Fantastic here you’re at my YouTube channel we’re talking about something truly important today the employee retention credit which the majority of you have actually never become aware of I definitely had not become aware of it up until very recently and found out a lot about it because this is probably the lowest cost of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply phone 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 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 like this program it’s disappearing soon you got to learn everything 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 offered organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody 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.
fix the cash cash payroll tax refund okay go on sorry I just have to make sure we got that point I suggest that’s a big distinction a loan versus cash cash I like money cash that’s what we’re talking about 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 stunning difficult 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 employee retention credit that individual needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have owned a company 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my preferred part cash how much can you return per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus due to the fact that the chaos 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 after that what takes place 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 money it is now there’s a caution here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten 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 staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial certainly now the huge concern is why does nobody learn about this because look when I first heard about this when I first satisfied 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 lots of numerous financial investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I do not believe it since I utilize the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we used them carefully to stay alive during the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even contacted us to my political leader pals Governor Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no info out there then a lot of individuals told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does no one know about the staff member retention credit you understand what’s fascinating you’re talking about the banks Kevin due to the fact that in the PPP loan procedure 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 huge banks in our nation 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 chaos since keep in mind in the initial cares act you could not do 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 because 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 know how to do this not truly she or he’s never done it in the past do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this prior to unless you have an account that entered into this business and bottom line my company Kevin has actually stayed in business given that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our huge big business clients have actually worked with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
employer whose business is completely or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is readily available to all employers no matter size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying wages varies by whether a company had, on average, basically than.
100 staff members in 2019.
Business that focus on ERC filing help typically provide know-how and assistance to assist services navigate the intricate procedure of declaring the credit. They can use different services, including:.
How is the employee retention credit calculated? 3Rd Quarter Employee Retention Credit
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based upon factors such as your market, profits, and operations. If you fulfill the requirements for the credit and recognize the optimum credit quantity you can claim, they can help figure out.
Paperwork and Computation: ERC filing services will help in collecting the required documents, such as payroll records and monetary statements, to support your claim. They will also help compute the credit amount based upon eligible wages and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to determine prospective chances for retroactive credits. They can assist you change prior tax returns to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and submit the required forms and documentation in your place. This includes finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved over time. These companies stay updated with the current changes and guarantee that your filings comply with the most current standards. They can likewise provide continuous assistance if the IRS demands additional details or conducts an audit related to your ERC claim.
It is very important to research and vet any business providing ERC filing help to ensure their credibility and expertise. Try to find established companies with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who offer ERC submitting assistance.
Remember that while these business can supply valuable assistance, it’s always a great concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to encourage companies to keep and pay their employees 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 employers, consisting of for-profit services, tax-exempt organizations, and certain governmental entities. To certify, employers must fulfill one of two criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross invoices. As pointed out earlier, for 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of certified wages paid to staff members, including certain health insurance expenses. 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, companies that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. The same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, allowing qualified employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for companies to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, generally Type 941. If the credit exceeds the quantity of employment taxes owed, the excess can be refunded to the company.
It is necessary to note that the ERC arrangements and eligibility criteria have actually progressed with time. The best strategy is to talk to a tax expert or visit the official IRS site for the most comprehensive and updated information concerning the ERC, consisting of any current legal modifications or updates.
To receive the ERC, a business must fulfill among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decrease 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 receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to businesses of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and businesses that got a PPP loan may have restrictions on declaring the credit.
The process for claiming the ERC involves completing the required forms and including the credit on your employment tax return (generally Form 941). The exact time it requires to process the credit can vary based on several factors, consisting of the complexity of your service and the workload of the IRS. It’s recommended to consult with a tax professional for assistance specific to your situation.
There are a number of business that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some widely known business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these business straight to inquire about their charges and services.
Please note that the information offered here is based upon general knowledge and may not reflect the most recent updates or changes to the ERC. It is necessary to speak with a tax expert or check out the official IRS website for the most current and accurate details regarding eligibility, claiming treatments, and offered assistance.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on incomes paid to all employees whether they really worked or not. Simply put, even if the.
staff members worked full-time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
allowed just for incomes paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just cash payments however also a portion of the expense of employer.
provided health care. 3Rd Quarter Employee Retention Credit
Payment.
Companies can be right away reimbursed for the credit by decreasing the amount of payroll taxes they.