Lets talk first about Do Churches Qualify For Employee Retention Credit :
Our group here what do these men doing everybody in this space is helping teach individuals about ERC and uh constantly offer a stunning breakfast and have individuals actually find out about the program we must head to the room where we have the ability to display some of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I mean you know if you just start to take a look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I suggest consider how many actual clients 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 verified and the check is on the mail in the mail from the internal revenue service 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 gone for sure and that’s when they pay so they don’t pay anything up until they actually get the cash they don’t pay bottom line Wonder trust anything till this letter is validated the check is on the method they transfer it into their savings account and they can really rely on Wonder trust that the process has actually been completed and how many you believe you’ve processed considering that you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing and that’s what you need you need professionals 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 Wonderful here you’re at my YouTube channel we’re talking about something really important today the employee retention credit which most of you have never heard of I certainly had not become aware of it till very just recently and learned a lot about it because this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have workers between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just phone 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 us all about it and how to get it and why I’ve become yes the Ambassador and paid representative 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 just start there so during the Trump Administration when President Trump was enacted they came up with 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 practically everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money money payroll tax refund okay go on sorry I just need to ensure we got that point I mean that’s a huge difference a loan versus cash cash I like cash money that’s what we’re speaking about alright 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 lovely hard check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have actually owned a service but it’s based on you having W-2 staff members in America not 10.99. As long as you had W-2 workers 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 first six months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s salary to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus due to the fact that the turmoil 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 as much as five thousand Max and then what occurs 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 6 thousand dollars per worker that is because that’s a great deal of cash it is now there’s a caution here the PPP money would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around ten 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 workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big certainly now the big concern is why does no one know about this since look when I first became aware of this when I first satisfied Josh you know I’ve got lots of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make numerous numerous financial investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I do not think it since I utilize the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them wisely to stay alive during the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even called to my politician pals Guv Senators they didn’t learn about it I imply that’s how you know 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 true so let’s ask Josh why does nobody know about the employee retention credit you understand what’s intriguing you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 simply process procedure that’s all um and here there was chaos because remember in the initial cares act you might refrain from doing both programs so if you had done PPP you could 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 government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it previously do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never ever done this before unless you have an account that went into this business and bottom line my firm Kevin has stayed in business given that 2009 and we’ve been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big big business customers have dealt with bottom line to recover other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
employer whose company is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is offered to all companies no matter size consisting of tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
employer’s gross receipts go above 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 overall.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of certifying incomes differs by whether a company had, on average, more or less than.
100 employees in 2019.
Business that concentrate on ERC filing support typically offer proficiency and support to assist businesses browse the complex procedure of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Do Churches Qualify For Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based on elements such as your market, income, and operations. If you meet the requirements for the credit and recognize the optimum credit quantity you can declare, they can help figure out.
Documents and Estimation: ERC filing services will help in collecting the necessary paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help determine the credit quantity based on eligible earnings and other qualifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can review your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and send the essential types and documentation in your place. This includes finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed with time. These companies stay updated with the current modifications and make sure that your filings abide by the most present standards. If the Internal revenue service requests additional information or conducts an audit associated to your ERC claim, they can also provide continuous support.
It is necessary to research study and vet any company providing ERC filing support to guarantee their credibility and proficiency. Search for recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who offer ERC filing assistance.
Keep in mind that while these business can supply valuable assistance, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified choices and guarantee precise 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 measures. The objective of the ERC is to motivate companies to maintain and pay their staff members throughout 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, consisting of for-profit companies, tax-exempt organizations, and particular governmental entities. To certify, employers must meet one of two 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. As pointed out earlier, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts 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 amounts to a portion (approximately 70%) of qualified incomes paid to employees, including certain 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: At first, services that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they received a PPP loan. However, the same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, allowing eligible companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to modify prior-year income tax return and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Kind 941. The excess can be refunded to the employer if the credit goes beyond the quantity of employment taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have actually developed in time. The best strategy is to speak with a tax professional or go to the official IRS site for the most in-depth and current details concerning the ERC, including any recent legislative changes or updates.
To receive the ERC, an organization 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.
The business experienced a substantial decline in gross invoices. For 2021, a considerable 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 specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and businesses that got a PPP loan may have limitations on claiming the credit.
The process for declaring the ERC involves finishing the essential kinds and including the credit on your employment tax return (typically Form 941). The exact time it takes to process the credit can vary based upon numerous elements, consisting of the intricacy of your business and the workload of the IRS. It’s advised to speak with a tax expert for guidance specific to your circumstance.
There are a number of companies that can help with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some widely known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these business straight to inquire about their fees and services.
Please note that the details provided here is based on general understanding and might not reflect the most current updates or changes to the ERC. It’s important to seek advice from a tax professional or go to the official IRS website for the most accurate and current details relating to eligibility, declaring procedures, and available support.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on wages paid to all staff members whether they actually worked or not. In other words, even if the.
employees worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
allowed only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply cash payments however likewise a portion of the cost of company.
offered health care. Do Churches Qualify For Employee Retention Credit
Payment.
Employers can be right away repaid for the credit by reducing the quantity of payroll taxes they.