Lets talk first about Do Nonprofits Qualify For The Employee Retention Credit :
Our group here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh constantly provide a stunning breakfast and have people really discover the program we need to head to the room 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 numerous millions of dollars literally Kevin hundreds of 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 simply begin 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 suggest 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 celebration at the end when the check is confirmed the numbers are verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you have the ability to track it you know when you
receive this you understand the check is chosen sure which’s when they pay so they don’t pay anything until they really receive the cash they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their savings account and they can genuinely rely on Wonder trust that the process has been completed and how many you believe you’ve processed considering that 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 and that’s what you need you need specialists 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 Terrific 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 definitely hadn’t heard of it up until extremely recently and learned a lot about it since this is probably the most affordable cost of capital for any small business anywhere
anytime if you have employees in between five 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 Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply phone your bank supervisor and say offer 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 enjoy this program it’s going away very soon you got to learn 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 created the cares Act and the cares act provided services 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 two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund all right go on sorry I simply have to make sure we got that point I imply that’s a big difference a loan versus money cash I like money cash that’s what we’re speaking about 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 stunning difficult check in the mail where you get real cash from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s worker retention credit that individual needed to be an employee so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have actually owned an organization however it’s based on you having W-2 staff members in America not 10.99. so as long as you had W-2 employees 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 first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my preferred part money how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s salary 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 wage to an optimum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus since the chaos 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 up to 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caution here the PPP money would need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically 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 where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge undoubtedly now the huge question is why does no one know about this due to the fact that look when I first found out about this when I initially met Josh you know I’ve got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which lots of suffered through the pandemic when I first heard about this I called BS I do not believe it since I use the PPP we went through the cash center Banks to get it it was extremely 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 stay alive during the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even called to my politician friends Governor Senators they didn’t learn about it I suggest that’s how you know that’s how false information is that there’s no info out there then a bunch 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 learn about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin because 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 procedure 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 mayhem due to the fact that remember in the original cares act you might not do both programs so if you had actually done PPP you could refrain from doing ERC in the original 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 federal government never made it clear to anyone about how to.
do this does your CFO know how to do this not really he or she’s never done it in the past do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this prior to unless you have an account that entered into this organization and bottom line my company Kevin has been in business because 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate customers have worked with bottom line to recuperate other government programs we’ve done sales tax and use 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 developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Since of COVID-19 or whose gross receipts, employer whose business is totally or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all companies regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. When the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying salaries differs by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that focus on ERC filing support normally offer knowledge and support to assist organizations navigate the complicated procedure of declaring the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Do Nonprofits Qualify For The Employee Retention Credit
Eligibility Assessment: These business will evaluate your company’s eligibility for the ERC based on aspects such as your market, earnings, and operations. They can help determine if you fulfill the requirements for the credit and recognize the optimum credit quantity you can declare.
Documentation and Estimation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and financial statements, to support your claim. They will likewise help compute the credit amount based upon qualified salaries and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the necessary types and paperwork on your behalf. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed with time. These business remain updated with the current modifications and make sure that your filings adhere to the most present standards. They can also supply ongoing assistance if the internal revenue service demands extra details or conducts an audit related to your ERC claim.
It’s important to research and vet any company providing ERC filing support to guarantee their credibility and competence. Look for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax specialists who use ERC filing assistance.
Remember that while these companies can provide valuable support, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage organizations to keep and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit businesses, tax-exempt organizations, and certain governmental entities. To qualify, employers must satisfy one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As discussed previously, for 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Amount: 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 certified incomes paid to workers, consisting of certain health plan costs. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got 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 received a PPP loan. The very same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, permitting eligible companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for businesses to amend prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, usually Form 941. If the credit surpasses the quantity of employment taxes owed, the excess can be refunded to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually progressed in time. The very best course of action is to talk to a tax expert or check out the official IRS website for the most up-to-date and in-depth details concerning the ERC, consisting of any recent legal changes or updates.
To receive the ERC, a service should fulfill among the following criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and services that received a PPP loan might have restrictions on declaring the credit.
The procedure for claiming the ERC involves finishing the required types and consisting of the credit on your employment tax return (typically Kind 941). The exact time it requires to process the credit can vary based upon several factors, consisting of the intricacy of your company and the work of the IRS. It’s recommended to consult with a tax professional for guidance particular to your circumstance.
There are numerous business that can assist with the procedure of declaring the ERC. Some popular business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details supplied here is based on basic knowledge and may not show the most recent updates or modifications to the ERC. It is essential to seek advice from a tax expert or go to the official internal revenue service website for the most up-to-date and accurate details concerning eligibility, claiming procedures, and available assistance.
Less than 100. If the company had 100 or less employees typically in 2019, then the credit is based.
on wages paid to all workers whether they in fact worked or not. Simply put, even if the.
workers 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.
allowed just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply cash payments but also a part of the expense of company.
provided healthcare. Do Nonprofits Qualify For The Employee Retention Credit
Companies can be immediately repaid for the credit by minimizing the quantity of payroll taxes they.