Lets talk first about Do I Qualify For The Employee Retention Credit :
Our group here what do these people doing everybody in this room is helping teach people about ERC and uh constantly supply a lovely breakfast and have individuals actually learn more about the program we must head to the space where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I imply you know if you just start 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 imply it’s just I indicate 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 internal revenue service heading to the consumer so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything until they actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their bank account and they can genuinely trust Wonder trust that the procedure has actually been ended up and how many you think you’ve processed because you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you need you need specialists 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 Terrific here you’re at my YouTube channel we’re talking about something really essential today the staff member retention credit which most of you have never heard of I certainly had not heard of it until very recently and discovered 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 in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just phone your bank manager and state provide me a loan it doesn’t 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 like this program it’s disappearing soon you got to find out all 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 developed the cares Act and the cares act provided services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund fine go on sorry I simply need to make sure we got that point I suggest that’s a huge difference a loan versus cash cash I like money cash that’s what we’re speaking about 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 gorgeous hard check in the mail where you get actual cash from the internal revenue service all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s worker retention credit that person had to be a staff member so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have owned a company but 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 have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part cash just how much can you return per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s income to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wished to even get more to keep those workers 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 develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere 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 staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the huge concern is why does no one understand about this due to the fact that appearance when I first became aware of this when I first fulfilled Josh you understand I have actually got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make lots of many financial investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t think it due to the fact that I use 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 which were well deserved and we utilized them wisely to survive during the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even called to my politician good friends Guv Senators they didn’t learn about it I indicate that’s how you know that’s how misinformation is that there’s no info out there then a bunch of individuals told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody understand about the worker retention credit you know what’s fascinating you’re discussing the banks Kevin since in the PPP loan procedure the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 process process that’s all um and here there was chaos since remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they altered 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 government never 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 do not do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this company and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big huge corporate customers have worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Because of COVID-19 or whose gross invoices, company whose organization is completely or partly suspended.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. When the.
company’s gross receipts exceed 80% of an equivalent 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 qualifying incomes paid up to $10,000 in total.
It works for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages differs by whether a company had, typically, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing assistance normally offer know-how and support to assist businesses browse the intricate process of claiming the credit. They can use various services, including:.
How is the employee retention credit calculated? Do I Qualify For The Employee Retention Credit
Eligibility Evaluation: These companies will assess your company’s eligibility for the ERC based on elements such as your industry, revenue, and operations. They can help figure out if you satisfy the requirements for the credit and recognize the optimum credit quantity you can claim.
Documents and Computation: ERC filing services will assist in gathering the needed documents, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit amount based on eligible salaries and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you modify prior tax returns to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the needed forms and paperwork on your behalf. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have evolved over time. These companies stay upgraded with the current modifications and make sure that your filings comply with the most present standards. They can also offer continuous support if the internal revenue service demands extra information or performs an audit related to your ERC claim.
It’s important to research and vet any company using ERC filing support to guarantee their trustworthiness and proficiency. Look for established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax professionals who provide ERC submitting assistance.
Bear in mind that while these business can offer valuable support, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to encourage organizations to keep and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit services, tax-exempt companies, and certain governmental entities. To qualify, companies need to meet one of two criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (up to 70%) of certified wages paid to staff members, including specific health plan expenditures. The optimum 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 got a Paycheck Security Program (PPP) loan were not eligible for the ERC. Nevertheless, 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 earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, enabling qualified companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision provides an opportunity for companies to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, generally Kind 941. If the credit surpasses the amount of work taxes owed, the excess can be reimbursed to the company.
It’s important to note that the ERC provisions and eligibility criteria have actually evolved in time. The best strategy is to consult with a tax professional or go to the official internal revenue service site for the most current and comprehensive details regarding the ERC, including any recent legal changes or updates.
To receive the ERC, a service must meet among the following criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and services that got a PPP loan might have constraints on claiming the credit.
The procedure for declaring the ERC includes finishing the required types and including the credit on your work tax return (generally Type 941). The exact time it requires to process the credit can vary based upon numerous aspects, consisting of the complexity of your service and the work of the internal revenue service. It’s advised to talk to a tax professional for guidance specific to your circumstance.
There are numerous companies that can help with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some popular business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and call these business directly to ask about their charges and services.
Please note that the info offered here is based upon basic knowledge and might not show the most recent updates or modifications to the ERC. It is necessary to consult with a tax professional or check out the official internal revenue service site for the most precise and updated info regarding eligibility, declaring procedures, and readily available assistance.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on salaries paid to all workers whether they in fact worked or not. In other words, even if the.
workers worked full time and earned 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.
allowed just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just cash payments however likewise a part of the cost of company.
provided health care. Do I Qualify For The Employee Retention Credit
Employers can be right away repaid for the credit by minimizing the amount of payroll taxes they.