Lets talk first about Can You Get Employee Retention Credit And Ppp Loan :
Our group here what do these guys doing everyone in this room is helping teach people about ERC and uh always offer a beautiful breakfast and have people really find out about the program we should head to the room where we are able to display a few of the checks that we are getting for business and I want to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I suggest you know if you just start to look at some 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 just I mean consider how many real customers that went through the program yeah this is the very end this is the party at the end when the check is verified 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’re able to track it you know when you
receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything till they actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they deposit it into their bank account and they can really trust Wonder trust that the procedure has actually been ended up and the number of you think you’ve processed since you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need you require 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 Terrific here you’re at my YouTube channel we’re discussing something actually essential today the worker retention credit which most of you have actually never ever become aware of I definitely had not heard of it until very just recently and found out a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas 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 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 ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to discover 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 used businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund all right go on sorry I simply have to make sure we got that point I mean that’s a huge distinction a loan versus cash cash I like money money that’s what we’re speaking about all right 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 gorgeous tough check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works since it seems like to me if it’s a if it’s worker retention credit that person needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you had to have actually owned a company but it’s based on you having W-2 employees 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 eligible so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well stroll 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. alright 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 employee that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus because the mayhem 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 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 employee that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing on average 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 big concern is why does nobody know about this since appearance when I first became aware of this when I initially satisfied Josh you know I have actually got great deals of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make lots of numerous 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 since I use 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 and that were well deserved and we used them sensibly 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 buddies Governor Senators they didn’t learn about it I indicate that’s how you understand that’s how misinformation is that there’s no details out there then a lot of people informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s fascinating you’re talking about the banks Kevin because in the PPP loan process the federal government made it very 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 process 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 due to the fact that keep in mind in the initial cares act you could refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC since 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 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 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 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 business so a lot of our huge huge business 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 chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Since of COVID-19 or whose gross receipts, employer whose company is fully or partly suspended.
decline by more than 50%.
1. The credit is readily available to all companies regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether an employer had, typically, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing support normally supply competence and assistance to assist businesses navigate the complicated process of declaring the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Can You Get Employee Retention Credit And Ppp Loan
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based on aspects such as your market, earnings, and operations. If you meet the requirements for the credit and recognize the optimum credit quantity you can claim, they can assist determine.
Paperwork and Estimation: ERC filing services will assist in gathering the needed paperwork, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit amount based upon qualified earnings and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can review your past payroll records and financials to determine potential opportunities for retroactive credits. They can help you amend prior income tax return to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and submit the necessary forms and paperwork in your place. This consists of finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually developed over time. These business remain updated with the latest changes and make sure that your filings abide by the most existing guidelines. If the IRS demands extra details or carries out an audit associated to your ERC claim, they can also offer ongoing assistance.
It is essential to research and veterinarian any business providing ERC filing help to guarantee their reliability and knowledge. Look for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax professionals who provide ERC submitting support.
Bear in mind that while these companies can provide important assistance, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and guarantee precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to encourage companies to retain and pay their workers throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit companies, tax-exempt organizations, and certain governmental entities. To qualify, companies must fulfill one of two criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices 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 amount amounts to a portion (up to 70%) of certified wages paid to staff members, including certain health insurance costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. Nevertheless, the very same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, enabling eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work tax returns, generally Form 941. If the credit goes beyond the quantity of work taxes owed, the excess can be refunded to the employer.
It is very important to note that the ERC provisions and eligibility requirements have evolved with time. The very best strategy is to seek advice from a tax expert or check out the main IRS site for the most in-depth and current info relating to the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a service must fulfill among the following requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is available to businesses of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and services that received a PPP loan might have constraints on declaring the credit.
The process for claiming the ERC includes completing the required kinds and consisting of the credit on your work income tax return (generally Kind 941). The exact time it takes to process the credit can differ based upon several aspects, including the intricacy of your organization and the workload of the IRS. It’s advised to talk to a tax expert for assistance specific to your circumstance.
There are numerous business that can assist with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some popular companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these business directly to inquire about their services and fees.
Please note that the info offered here is based on general understanding and may not show the most recent updates or changes to the ERC. It is essential to seek advice from a tax professional or visit the main IRS site for the most current and accurate details relating to eligibility, declaring treatments, and readily available help.
Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on wages paid to all workers whether they in fact worked or not. Simply put, even if the.
staff members worked full time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
permitted only for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just cash payments however likewise a portion of the expense of employer.
offered health care. Can You Get Employee Retention Credit And Ppp Loan
Companies can be right away reimbursed for the credit by decreasing the quantity of payroll taxes they.