Lets talk first about Claim Your Employee Retention Credit Covid-19 Tax Relief For Small Businesses Small Business Tax Credits For Retaining Employees Erc For Businesses Impacted By Covid-19 Erc Fund For Small Business Sustainability :
Our team here what do these guys doing everybody in this space is helping teach individuals about ERC and uh constantly supply a stunning breakfast and have people actually learn more about the program we must head to the room where we are able to show some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I mean you know if you just begin to 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 consider the number of actual customers 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 confirmed and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you know when you
get this you know the check is chosen sure and that’s when they pay so they don’t pay anything till they really receive 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 bank account and they can truly rely on Wonder trust that the process has actually been ended up and how many you think you’ve processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand 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 one of these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re talking about something really essential today the staff member retention credit which the majority of you have never ever heard of I certainly hadn’t become aware of it till very recently and found out a lot about it because this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have employees between five 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 biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply phone your bank supervisor and say give 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 become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big 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 fine go on sorry I simply need to make certain we got that point I indicate that’s a huge difference a loan versus money money I like money money that’s what we’re discussing 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 initial cares Act is the ERC and yes Kevin it is a beautiful hard check in the mail where you get real money from the IRS all right so let’s speak about how it works since 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 people on the cap table not for shareholders it’s for employees right you had to have owned a company however it’s based on you having W-2 staff members in America not 10.99. As long as you had W-2 staff members 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 six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the employee’s income to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to an optimum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wanted 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 approximately 5 thousand Max and after that what happens 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 6 thousand dollars per staff member that is because that’s a lot of money it is now there’s a caution here the PPP cash would need to be decreased from the twenty six 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 money somewhere around 10 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 workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the huge question is why does no one understand about this due to the fact that look when I first heard about this when I initially fulfilled Josh you know I’ve got lots of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially found out about this I called BS I do not believe it because 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 and that were well been worthy of and we utilized them sensibly to stay alive during the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even contacted us to my politician good friends Guv Senators they didn’t learn about it I imply that’s how you know that’s how false information is that there’s no information out there then a lot of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody learn about the employee retention credit you know what’s interesting you’re talking about the banks Kevin since in the PPP loan process the federal government made it really clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 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 might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it before 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 accounting professional no your accountant’s never done this before unless you have an account that entered into this organization and bottom line my company Kevin has stayed in business because 2009 and we have actually been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big big business customers have actually dealt 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 property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
employer whose organization is totally or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Schedule.
1. The credit is offered to all companies no matter size including tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation 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 incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages differs by whether an employer had, usually, basically than.
100 employees in 2019.
Business that concentrate on ERC filing support typically offer knowledge and support to help organizations navigate the complex procedure of claiming the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Claim Your Employee Retention Credit Covid-19 Tax Relief For Small Businesses Small Business Tax Credits For Retaining Employees Erc For Businesses Impacted By Covid-19 Erc Fund For Small Business Sustainability
Eligibility Assessment: These companies will evaluate your service’s eligibility for the ERC based upon factors such as your market, profits, and operations. They can help identify if you satisfy the requirements for the credit and identify the optimum credit amount you can claim.
Documents and Calculation: ERC filing services will assist in gathering the necessary paperwork, such as payroll records and monetary statements, to support your claim. They will also assist determine the credit quantity based on qualified incomes and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can examine your past payroll records and financials to identify potential opportunities for retroactive credits. They can help you modify prior income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the required forms and documentation on your behalf. This consists of finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have evolved with time. These companies stay upgraded with the current changes and make sure that your filings abide by the most current guidelines. If the IRS requests additional details or performs an audit related to your ERC claim, they can likewise supply ongoing support.
It’s important to research and veterinarian any business providing ERC filing assistance to guarantee their trustworthiness and proficiency. Search for recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who offer ERC submitting assistance.
Bear in mind that while these companies can offer important support, it’s constantly a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and guarantee accurate 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 keep 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 eligible companies, consisting of for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers need to fulfill one of two requirements:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a significant decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices 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 is equal to a percentage (as much as 70%) of qualified salaries paid to employees, including certain health insurance costs. 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: Initially, services that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. The exact same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, enabling qualified employers to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to modify prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Form 941. If the credit exceeds the quantity of employment taxes owed, the excess can be refunded to the company.
It is essential to note that the ERC provisions and eligibility criteria have evolved in time. The best strategy is to speak with a tax expert or go to the main IRS site for the most in-depth and updated information relating to the ERC, including any current legislative modifications or updates.
To get approved for the ERC, an organization should meet one of the following criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and businesses that received a PPP loan may have restrictions on claiming the credit.
The process for claiming the ERC involves finishing the necessary types and including the credit on your employment tax return (usually Type 941). The exact time it requires to process the credit can differ based on numerous factors, including the intricacy of your business and the workload of the internal revenue service. It’s advised to consult with a tax expert for assistance particular to your scenario.
There are several business that can help with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some popular companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and call these business straight to ask about their fees and services.
Please keep in mind that the info supplied here is based on basic understanding and might not show the most recent updates or changes to the ERC. It’s important to speak with a tax professional or check out the official IRS site for the most current and precise details regarding eligibility, claiming treatments, and available help.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on salaries paid to all employees whether they actually worked or not. To put it simply, even if the.
workers 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 employees on average in 2019.
enabled just for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply cash payments but likewise a part of the expense of employer.
provided healthcare. Claim Your Employee Retention Credit Covid-19 Tax Relief For Small Businesses Small Business Tax Credits For Retaining Employees Erc For Businesses Impacted By Covid-19 Erc Fund For Small Business Sustainability
Payment.
Employers can be immediately reimbursed for the credit by reducing the quantity of payroll taxes they.