Lets talk first about Do Employees Get The Employee Retention Credit :
Our group here what do these guys doing everybody in this space is assisting teach individuals about ERC and uh always offer a beautiful breakfast and have people truly find out about the program we must head to the space where we are able to display some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I indicate you understand if you just start to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I imply think about the number of 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 validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you know when you
get this you know the check is opted for sure which’s when they pay so they don’t pay anything up until they in fact receive the money they don’t pay bottom line Wonder trust anything till this letter is validated the check is on the way they transfer it into their bank account and they can really trust Wonder trust that the process has actually been completed and the number of you believe you have actually processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you need you require 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 speaking about something really crucial today the employee retention credit which the majority of you have never ever become aware of I certainly had not heard of it until very recently and found out a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members 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 not easy 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 tell all of us about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I love this program it’s going away soon you got to discover everything about it let’s talk staff member 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 businesses 3 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 difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund all right go on sorry I just have to ensure we got that point I indicate that’s a huge difference a loan versus cash money I like cash money 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 initial cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get real money from the IRS 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 employee 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 needed to have actually owned a service however it’s based upon you having W-2 staff members 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 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 six months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part cash how much can you return per worker that was on a W-2 in those six 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 employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to an optimum 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 wished 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 five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal of money it is now there’s a caution here the PPP cash would need to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city 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 IRS so it’s huge obviously now the big concern is why does nobody learn about this since appearance when I first heard about this when I initially met Josh you know I have actually got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make lots of many financial investments in business owners of which numerous suffered through the pandemic when I first found out about this I called BS I don’t believe it because I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well should have and we used them carefully to survive throughout the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my politician buddies Guv Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody understand about the employee retention credit you know 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 desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 simply process process 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 changed 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 made it clear to any person about how to.
do this does your CFO know how to do this not really she or he’s never ever done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accountant no your accountant’s never ever done this prior to unless you have an account that entered into this service and bottom line my company Kevin has actually been in business because 2009 and we have actually been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big big corporate clients have dealt with bottom line to recover other government programs we have actually 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 government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Because of COVID-19 or whose gross receipts, company whose company is fully or partly suspended.
decrease by more than 50%.
1. The credit is offered to all employers no matter size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. When the.
employer’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying 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 wages differs by whether an employer had, typically, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing assistance usually provide competence and assistance to assist companies navigate the complicated procedure of declaring the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Do Employees Get The Employee Retention Credit
Eligibility Assessment: These business will assess your organization’s eligibility for the ERC based upon elements such as your industry, income, and operations. If you meet the requirements for the credit and recognize the maximum credit quantity you can declare, they can help figure out.
Documentation and Calculation: ERC filing services will help in collecting the required documentation, such as payroll records and monetary statements, to support your claim. They will also help determine the credit quantity based upon eligible incomes and other certifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can examine your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the required types and documentation in your place. This includes finishing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have evolved with time. These companies remain upgraded with the most recent modifications and guarantee that your filings abide by the most current guidelines. If the IRS requests extra information or performs an audit related to your ERC claim, they can likewise offer continuous assistance.
It is necessary to research and veterinarian any business providing ERC filing help to guarantee their trustworthiness and expertise. Try to find recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax experts who provide ERC filing support.
Remember that while these companies can offer valuable support, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and ensure 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 measures. The objective of the ERC is to motivate organizations to keep and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, employers need to satisfy one of two criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As discussed earlier, for 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified 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 instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (up to 70%) of qualified incomes paid to staff members, including certain health insurance expenses. The optimum 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 got an Income Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they received a PPP loan. Nevertheless, the exact same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, enabling eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Type 941. The excess can be refunded to the company if the credit surpasses the quantity of employment taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility requirements have evolved over time. The very best strategy is to consult with a tax professional or check out the main IRS website for the most in-depth and updated information regarding the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company must satisfy one of the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease 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.
The ERC is available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. For example, government entities and organizations that received a PPP loan might have constraints on declaring the credit.
The procedure for claiming the ERC includes completing the essential forms and consisting of the credit on your employment tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon several factors, consisting of the intricacy of your service and the work of the internal revenue service. It’s suggested to speak with a tax expert for assistance specific to your circumstance.
There are a number of companies that can help with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some well-known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and contact these business straight to inquire about their services and fees.
Please note that the details provided here is based on general understanding and may not show the most recent updates or changes to the ERC. It’s important to speak with a tax expert or check out the main IRS website for the most up-to-date and precise info regarding eligibility, declaring procedures, and offered help.
Less than 100. If the company had 100 or fewer staff members usually in 2019, then the credit is based.
on wages paid to all staff members whether they in fact worked or not. Simply put, even if the.
employees worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members usually in 2019, then the credit is.
permitted only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments but also a portion of the expense of company.
offered health care. Do Employees Get The Employee Retention Credit
Employers can be right away reimbursed for the credit by minimizing the quantity of payroll taxes they.