Lets talk first about Covid-19-related Employee Retention Credits :
Our group here what do these guys doing everybody in this space is assisting teach individuals about ERC and uh always offer a stunning breakfast and have people truly learn about the program we must head to the space where we have the ability to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the method I imply you understand 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 simply I indicate think about 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 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
get this you understand the check is chosen sure and that’s when they pay so they do not pay anything until they in fact receive the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the way they deposit it into their checking account and they can genuinely trust Wonder trust that the process has actually been ended up and the number of you believe you’ve processed since you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you require you need 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 Fantastic here you’re at my YouTube channel we’re speaking about something really crucial 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 really just recently and learned a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have workers in 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 Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call up your bank manager and say provide me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I like this program it’s going away very soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies 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.
fix the money money payroll tax refund okay go on sorry I just have to make certain we got that point I mean that’s a big difference a loan versus money cash I like cash cash that’s what we’re discussing 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 gorgeous difficult 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 worker retention credit that individual had 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 investors it’s for employees right you had to have owned an organization however it’s based upon you having W-2 workers 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 need 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 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to a maximum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus because 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 up to five thousand Max and after that 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 because that’s a lot of cash it is now there’s a caution here the PPP money would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city 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 huge certainly now the big concern is why does no one learn about this because look when I initially became aware of this when I initially fulfilled Josh you understand I have actually got lots of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which lots of suffered through the pandemic when I first heard 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 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 wisely to survive throughout the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even contacted us to my politician friends Governor Senators they didn’t understand about it I imply that’s how you understand that’s how misinformation is that there’s no info out there then a lot 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 nobody understand about the employee retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that 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 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 due to the fact that remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you might not do 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 anyone about how to.
do this does your CFO know 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 business yeah some of them are doing it as a payroll company your accountant 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 actually stayed in business since 2009 and we’ve been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have dealt with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep workers 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 receipts, employer whose organization is completely or partially suspended.
decrease by more than 50%.
1. The credit is available to all companies regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To qualify, 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 partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer qualify.
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 overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying wages differs by whether a company had, on average, more or less than.
100 staff members in 2019.
Companies that focus on ERC filing assistance typically provide proficiency and assistance to help companies navigate the complicated procedure of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? Covid-19-related Employee Retention Credits
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based on elements such as your market, earnings, and operations. If you satisfy the requirements for the credit and determine the maximum credit quantity you can claim, they can help determine.
Documents and Computation: ERC filing services will assist in collecting the needed documents, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit amount based upon qualified incomes and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can evaluate your previous payroll records and financials to determine possible chances for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the required forms and paperwork in your place. This includes finishing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have progressed in time. These business stay upgraded with the latest changes and guarantee that your filings adhere to the most existing standards. If the Internal revenue service demands extra info or performs an audit associated to your ERC claim, they can also supply ongoing assistance.
It is necessary to research and vet any company providing ERC filing assistance to guarantee their reliability and expertise. Look for recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax specialists who use ERC filing support.
Remember that while these companies can provide important assistance, it’s constantly a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and guarantee accurate filings.
The Employee 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 companies to retain and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit companies, tax-exempt organizations, and certain governmental entities. To certify, employers should 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 substantial decline in gross receipts. As pointed out previously, for 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices 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 is equal to a percentage (approximately 70%) of certified salaries paid to staff members, including specific health insurance 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: Initially, companies that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they got a PPP loan. The exact same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting eligible employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement provides a chance for companies to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, generally Form 941. The excess can be refunded to the employer if the credit goes beyond the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility requirements have evolved in time. The very best course of action is to talk to a tax expert or check out the main internal revenue service site for the most detailed and current info regarding the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a service needs to satisfy one of the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline 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 immediately preceding quarter.
The ERC is available to businesses of all sizes, consisting of tax-exempt companies, however there are some exceptions. For instance, federal government entities and businesses that received a PPP loan may have limitations on claiming the credit.
The process for declaring the ERC includes finishing the required forms and consisting of the credit on your employment income tax return (generally Form 941). The exact time it requires to process the credit can differ based upon several elements, including the complexity of your company and the work of the internal revenue service. It’s advised to consult with a tax expert for assistance specific to your situation.
There are numerous business that can assist with the procedure of claiming the ERC. Some widely known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based upon general knowledge and might not reflect the most current updates or changes to the ERC. It is very important to consult with a tax professional or check out the official IRS site for the most precise and current information concerning eligibility, declaring treatments, and available help.
Less than 100. If the company had 100 or fewer workers on average in 2019, then the credit is based.
on incomes paid to all workers whether they in fact worked or not. To put it simply, even if the.
workers worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
permitted just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just cash payments however likewise a portion of the expense of company.
provided health care. Covid-19-related Employee Retention Credits
Companies can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.