Lets talk first about Covid Employee Retention Credit Self Employed :
Our team here what do these men doing everybody in this space is helping teach individuals about ERC and uh constantly offer a lovely breakfast and have people actually find out about the program we need to head to the space where we have the ability to display a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I suggest you know if you just begin to take a 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 mean it’s just I suggest consider how many actual 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 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 understand the check is gone for sure and that’s when they pay so they don’t pay anything until they actually get the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they transfer it into their checking account and they can genuinely rely on Wonder trust that the procedure has been completed and how many you believe you have actually processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you require 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 Wonderful here you’re at my YouTube channel we’re speaking about something really important today the employee retention credit which the majority of you have never ever heard of I definitely had not heard of it till really recently and learned a lot about it since this is probably the most affordable cost of capital for any small company anywhere
anytime if you have staff members between 5 and five hundred so I’ve 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 hard this isn’t like PPP we simply call your bank manager and say 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’ve ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody 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 money cash payroll tax refund fine go on sorry I simply need to ensure we got that point I suggest that’s a huge distinction a loan versus money money I like cash cash that’s what we’re talking 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 gorgeous tough check in the mail where you get real money from the internal revenue service all right so let’s talk 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 person had to be a staff member 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 actually owned a company however it’s based on 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 very first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the employee’s wage to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s wage to an optimum of seven 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 as much as 5 thousand Max and then what happens 21 000 Max in 2021 oh that’s how you develop 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 great deal of cash it is now there’s a caution here the PPP money would have to be reduced 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 someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant 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 certainly now the huge question is why does no one know about this due to the fact that look when I initially heard about this when I initially met Josh you know I have actually got lots of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make numerous lots of financial investments in entrepreneurs of which numerous 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 used them carefully to survive during the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even contacted us 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 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 learn about the employee retention credit you know what’s fascinating you’re discussing the banks Kevin because 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 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 process that’s all um and here there was turmoil 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 changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal 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 done it previously 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 ever done this before unless you have an account that went into this service and bottom line my firm Kevin has actually been in business given that 2009 and we’ve been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have actually dealt with bottom line to recover other government programs we’ve done sales tax and use 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 workers on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose organization is fully or partially suspended.
decline by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. Once the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings differs by whether a company had, typically, more or less than.
100 workers in 2019.
Business that focus on ERC filing support typically offer knowledge and assistance to help companies browse the intricate procedure of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Covid Employee Retention Credit Self Employed
Eligibility Assessment: These business will examine your company’s eligibility for the ERC based upon factors such as your market, profits, and operations. They can help figure out if you meet the requirements for the credit and determine the optimum credit amount you can claim.
Documents and Calculation: ERC filing services will assist in gathering the needed documents, such as payroll records and monetary statements, to support your claim. They will also assist calculate the credit quantity based on eligible incomes and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can review your past payroll records and financials to recognize potential opportunities for retroactive credits. They can help you change prior income tax return to declare these refunds.
Filing Help: Business concentrating on ERC filings will prepare and submit the necessary forms and documentation in your place. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually developed with time. These business remain updated with the latest changes and ensure that your filings adhere to the most present guidelines. They can likewise provide continuous support if the internal revenue service demands additional info or performs an audit related to your ERC claim.
It is essential to research and vet any company offering ERC filing support to ensure their credibility and knowledge. Search for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax experts who use ERC submitting support.
Keep in mind that while these companies can offer important assistance, it’s always a good idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to encourage organizations to retain and pay their staff members during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit services, tax-exempt companies, and certain governmental entities. To qualify, employers should fulfill one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross invoices. As pointed out earlier, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
Credit Quantity: 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 (approximately 70%) of certified salaries paid to employees, including specific health insurance expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. Nevertheless, the very 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 improved, permitting qualified employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision supplies a chance for companies to amend prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Type 941. The excess can be reimbursed to the company if the credit exceeds the amount of work taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have evolved in time. The very best strategy is to seek advice from a tax professional or go to the main IRS website for the most updated and detailed information regarding the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a business needs to satisfy among the following criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt companies, however there are some exceptions. For example, federal government entities and organizations that got a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC involves completing the essential kinds and including the credit on your work income tax return (usually Type 941). The exact time it requires to process the credit can vary based upon a number of factors, including the intricacy of your service and the workload of the internal revenue service. It’s advised to seek advice from a tax professional for assistance specific to your circumstance.
There are a number of companies that can assist with the process of claiming the ERC. Some well-known companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info offered here is based on general knowledge and might not show the most current updates or changes to the ERC. It is very important to speak with a tax professional or visit the main IRS website for the most up-to-date and accurate details concerning eligibility, claiming procedures, and offered support.
Less than 100. If the company had 100 or less staff members typically in 2019, then the credit is based.
on incomes paid to all workers whether they actually worked or not. Simply put, even if the.
staff members worked full-time and made money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members on average in 2019, then the credit is.
permitted just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not just money payments however likewise a part of the expense of company.
supplied health care. Covid Employee Retention Credit Self Employed
Companies can be immediately reimbursed for the credit by reducing the amount of payroll taxes they.