Lets talk first about Aicpa Employee Retention Credit Calculator :
Our team here what do these people doing everyone in this space is helping teach individuals about ERC and uh constantly offer a beautiful breakfast and have people actually find out about the program we ought to head to the room where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I mean you understand if you simply start to take a 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 just I suggest think of how many real 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 customer so that’s how you have the ability to track it you understand when you
receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their bank account and they can genuinely rely on Wonder trust that the process has actually been completed and how many you think you’ve processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you need you need specialists 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 speaking about something actually important today the worker retention credit which the majority of you have actually never ever become aware of I certainly hadn’t heard of it until extremely recently and learned a lot about it because this is most likely the most affordable 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 largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just phone your bank supervisor and say provide me a loan it doesn’t 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 like this program it’s going away soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund fine go on sorry I just need to ensure we got that point I suggest that’s a huge difference a loan versus cash cash I like money money that’s what we’re speaking about 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 beautiful hard check in the mail where you get actual cash from the IRS all right so let’s speak about how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that individual had to be an employee 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 employees right you had to have actually owned a company but it’s based on you having W-2 staff members 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 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 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part money just how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus due to the fact that the mayhem 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 as much as 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 six thousand dollars per employee that is since that’s a great deal of cash it is now there’s a caution here the PPP money 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 usually Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big obviously now the huge concern is why does nobody know about this since look when I initially heard about this when I initially met Josh you understand I’ve got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of investments in business owners of which many suffered through the pandemic when I first heard about this I called BS I do not think it because I use 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 should have and we used them wisely to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even called to my political leader good friends Governor Senators they didn’t know about it I indicate that’s how you understand that’s how false information is that there’s no info out there then a lot of individuals informed me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan process the federal government made it really clear that if you wanted 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 simply process procedure that’s all um and here there was turmoil due to the fact that remember in the original cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not truly he or she’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 accountant no your accounting professional’s never ever done this before unless you have an account that entered into this company and bottom line my firm Kevin has actually stayed in business considering that 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge business customers have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Because of COVID-19 or whose gross invoices, employer whose organization is totally or partly suspended.
decrease by more than 50%.
Accessibility.
1. The credit is readily available to all companies regardless of size including tax exempt organizations. 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 company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. When the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity 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 definition of certifying wages varies by whether an employer had, typically, basically than.
100 workers in 2019.
Companies that focus on ERC filing assistance usually offer expertise and support to assist companies navigate the complicated procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Aicpa Employee Retention Credit Calculator
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based upon elements such as your industry, earnings, and operations. If you meet the requirements for the credit and recognize the maximum credit amount you can claim, they can help identify.
Documents and Calculation: ERC filing services will help in gathering the essential paperwork, such as payroll records and financial declarations, to support your claim. They will likewise assist determine the credit amount based on qualified salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can examine your past payroll records and financials to identify prospective opportunities for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and submit the necessary kinds and documentation on your behalf. This includes completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually evolved with time. These companies remain updated with the latest modifications and guarantee that your filings adhere to the most existing standards. If the IRS requests extra details or performs an audit associated to your ERC claim, they can likewise provide ongoing support.
It’s important to research and veterinarian any business offering ERC filing support to guarantee their trustworthiness and expertise. Look for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax specialists who offer ERC submitting support.
Bear in mind that while these business can provide important assistance, it’s always a great idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed decisions and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to maintain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit organizations, tax-exempt organizations, and particular governmental entities. To certify, employers should meet one of two requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As pointed out earlier, 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 decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of certified incomes paid to workers, consisting of specific health plan 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, services that got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. The very same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, allowing qualified employers to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies a chance for companies to modify prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Form 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the employer.
It is essential to keep in mind that the ERC arrangements and eligibility requirements have actually progressed in time. The very best strategy is to seek advice from a tax professional or visit the main IRS website for the most current and comprehensive details regarding the ERC, including any recent legislative changes or updates.
To receive the ERC, a company needs to satisfy one of the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease 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 offered to companies of all sizes, including tax-exempt organizations, however there are some exceptions. For example, government entities and services that received a PPP loan may have constraints on claiming the credit.
The procedure for claiming the ERC includes completing the needed types and including the credit on your employment tax return (usually Kind 941). The exact time it requires to process the credit can vary based upon a number of elements, including the intricacy of your company and the workload of the internal revenue service. It’s suggested to talk to a tax expert for guidance particular to your situation.
There are several companies that can assist with the procedure of declaring the ERC. Some widely known companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details offered here is based on general understanding and may not reflect the most recent updates or modifications to the ERC. It is necessary to consult with a tax expert or check out the main internal revenue service site for the most precise and updated information concerning eligibility, declaring treatments, and available help.
Less than 100. The credit is based if the company had 100 or fewer workers on average in 2019.
on wages paid to all workers whether they actually worked or not. To put it simply, even if the.
employees 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 staff members usually in 2019, then the credit is.
enabled just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not just money payments but likewise a part of the cost of employer.
provided health care. Aicpa Employee Retention Credit Calculator
Payment.
Companies can be right away repaid for the credit by reducing the quantity of payroll taxes they.