Lets talk first about Can You Still Claim The Employee Retention Credit :
Our team here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh constantly offer a stunning breakfast and have people truly discover the program we must head to the room where we are able to display a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I imply you understand if you just begin to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I indicate think about the number of real clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are verified 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
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything until they actually get 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 truly trust Wonder trust that the procedure has actually been finished and how many you believe you have actually processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you need you require experts 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 Terrific here you’re at my YouTube channel we’re discussing something actually important today the staff member retention credit which the majority of you have never ever heard of I certainly had not become aware of it up until really just recently and found out a lot about it because this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply call up your bank manager and state provide me a loan it does not work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to find out everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used businesses three chances 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 exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund okay go on sorry I simply need to make certain we got that point I suggest that’s a big distinction a loan versus cash money I like cash money 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 original cares Act is the ERC and yes Kevin it is a beautiful difficult check in the mail where you get actual cash from the internal revenue service all right so let’s talk about how it works because it seems like to me if it’s a if it’s employee retention credit that person needed to be a staff member so I’m going to make the Presumption 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 service but it’s based upon you having W-2 employees in America not 10.99. so as long as you had W-2 staff members 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 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three 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 preferred part money just how much can you return per worker that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to an optimum of 7 thousand per quarter how did that take place um they simply changed the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wanted to even get more to keep those workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is since that’s a lot of money it is now there’s a caution here the PPP cash would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars a person 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 money you would still get a million dollar in the mail from the internal revenue service so it’s huge certainly now the big concern is why does nobody learn about this because appearance when I initially found out about this when I first fulfilled Josh you know I’ve got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make lots of lots of investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I don’t think it due to the fact that I utilize 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 should have and we utilized them wisely to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even called to my politician friends Guv Senators they didn’t learn about it I mean that’s how you understand that’s how false information is that there’s no details out there then a bunch of people told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one know about the staff member retention credit you know what’s interesting you’re discussing the banks Kevin since in the PPP loan procedure 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 big 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 simply process process that’s all um and here there was mayhem because keep in mind in the initial cares act you could not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial 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 federal government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not actually she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this business and bottom line my firm Kevin has actually stayed in business considering that 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our big huge corporate clients have dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment 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 designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, company whose organization is fully or partially suspended.
decline by more than 50%.
Accessibility.
1. The credit is available to all employers despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service 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 equivalent quarter in 2019. When the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes differs by whether a company had, typically, more or less than.
100 staff members in 2019.
Companies that concentrate on ERC filing help generally offer proficiency and support to help services browse the complex procedure of claiming the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Can You Still Claim The Employee Retention Credit
Eligibility Evaluation: These business will examine your organization’s eligibility for the ERC based on aspects such as your market, profits, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can claim, they can assist determine.
Paperwork and Computation: ERC filing services will help in gathering the required documents, such as payroll records and financial statements, to support your claim. They will also assist determine the credit amount based on eligible incomes and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can review your past payroll records and financials to identify possible chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the required types and documents in your place. This includes completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually evolved gradually. These business stay upgraded with the most recent modifications and guarantee that your filings adhere to the most current guidelines. If the Internal revenue service demands additional information or carries out an audit associated to your ERC claim, they can also offer continuous support.
It is very important to research study and vet any company offering ERC filing assistance to ensure their reliability and expertise. Try to find recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who use ERC filing support.
Remember that while these companies can offer important support, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage organizations to maintain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, companies must satisfy one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As pointed out earlier, for 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease 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 (up to 70%) of certified incomes paid to workers, including particular health insurance costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received an Income Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. However, the exact same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and improved, allowing qualified employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for businesses to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, generally Type 941. The excess can be reimbursed to the company if the credit goes beyond the quantity of work taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility criteria have actually evolved with time. The very best strategy is to talk to a tax expert or check out the main internal revenue service website for the most current and comprehensive details regarding the ERC, including any current legislative changes or updates.
To receive the ERC, a business needs to satisfy among the following requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, government entities and companies that got a PPP loan might have constraints on declaring the credit.
The procedure for claiming the ERC involves completing the essential types and including the credit on your work income tax return (generally Form 941). The exact time it requires to process the credit can vary based upon a number of aspects, including the complexity of your service and the work of the IRS. It’s advised to speak with a tax professional for assistance particular to your scenario.
There are numerous business that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these companies straight to inquire about their charges and services.
Please keep in mind that the information supplied here is based on basic knowledge and may not show the most current updates or changes to the ERC. It is essential to speak with a tax professional or go to the main internal revenue service site for the most up-to-date and accurate details concerning eligibility, claiming treatments, and available assistance.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on salaries paid to all workers whether they actually worked or not. Simply put, even if the.
staff members worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
allowed only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply cash payments however likewise a portion of the expense of employer.
provided healthcare. Can You Still Claim The Employee Retention Credit
Payment.
Employers can be immediately repaid for the credit by minimizing the amount of payroll taxes they.