Lets talk first about Employee Retention Credit 2021 Family Members :
Our team here what do these guys doing everyone in this room is assisting teach people about ERC and uh constantly supply a stunning breakfast and have people truly learn about the program we should head to the room where we are able to show a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I suggest you know if you simply 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 suggest it’s just I mean think about the number of real 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 verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you understand when you
get this you understand the check is gone for sure and that’s when they pay so they do not pay anything up until they actually receive the cash they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their bank account and they can really rely on Wonder trust that the procedure has been completed and how many you believe you’ve processed since you began 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 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 Fantastic here you’re at my YouTube channel we’re talking about something truly crucial today the staff member retention credit which the majority of you have actually never heard of I certainly had not become aware of it up until really just recently and found out a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have employees in between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call up your bank manager and state offer me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us 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 going away soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund fine go on sorry I simply need to make certain we got that point I indicate that’s a huge distinction a loan versus money cash I like money cash that’s what we’re talking 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 beautiful hard check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works because it seems like to me if it’s a if it’s employee retention credit that person needed 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 investors it’s for workers right you had to have actually owned a business but it’s based on you having W-2 employees in America not 10.99. 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 proper 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 three of 2021. fine 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 cash how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 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 employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge undoubtedly now the big concern is why does no one understand about this because appearance when I first found out about this when I first satisfied Josh you know I have actually got lots of investments in lots of companies I’m a major supporter for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which lots of suffered through the pandemic when I first heard about this I called BS I do not think it since I use the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well deserved and we used them sensibly to survive 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 contacted us to my political leader pals Guv Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one know about the worker retention credit you know what’s fascinating you’re speaking about the banks Kevin since in the PPP loan process 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 big 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 process that’s all um and here there was chaos since remember in the original cares act you could not do both programs so if you had done PPP you might not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC due to the fact that 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 don’t do it the payroll companies yeah a few of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this service and bottom line my firm Kevin has actually been in business since 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate customers have actually worked with bottom line to recuperate other government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross receipts, company whose company is completely or partially suspended.
decline by more than 50%.
1. The credit is available to all companies despite size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. Once the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries differs by whether a company had, usually, basically than.
100 employees in 2019.
Companies that concentrate on ERC filing assistance usually offer expertise and support to assist companies browse the complicated procedure of claiming the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit 2021 Family Members
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based on elements such as your industry, revenue, and operations. If you satisfy the requirements for the credit and recognize the optimum credit quantity you can claim, they can help identify.
Paperwork and Estimation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and financial declarations, to support your claim. They will likewise assist compute the credit amount based upon qualified earnings and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can review your past payroll records and financials to recognize possible chances for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required forms and documentation on your behalf. This includes finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have evolved over time. These business remain upgraded with the latest changes and guarantee that your filings comply with the most existing standards. They can also provide continuous support if the IRS demands additional details or conducts an audit related to your ERC claim.
It is very important to research and vet any company using ERC filing assistance to guarantee their trustworthiness and competence. Look for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax specialists who provide ERC submitting assistance.
Remember that while these companies can provide valuable support, it’s always a great idea to have a standard understanding of the ERC requirements and process yourself. This will help you make notified choices and guarantee accurate 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 motivate organizations to keep and pay their employees during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, employers need to satisfy one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As discussed previously, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline 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 instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a portion (approximately 70%) of qualified wages paid to staff members, consisting of specific health insurance 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: At first, companies that received an Income Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. The exact same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, allowing eligible employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for organizations 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, normally Type 941. If the credit exceeds the amount of work taxes owed, the excess can be refunded to the employer.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually evolved gradually. The best strategy is to consult with a tax professional or check out the official IRS website for the most up-to-date and detailed details concerning the ERC, including any current legal modifications or updates.
To get approved for the ERC, a company needs to meet one of the following requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and businesses that received a PPP loan may have constraints on declaring the credit.
The process for claiming the ERC involves completing the essential types and consisting of the credit on your employment tax return (usually Type 941). The exact time it takes to process the credit can differ based on several factors, including the intricacy of your company and the work of the IRS. It’s advised to speak with a tax professional for guidance particular to your scenario.
There are numerous business that can assist with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some well-known companies that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these business directly to inquire about their costs and services.
Please note that the details provided here is based on general understanding and might not show the most recent updates or modifications to the ERC. It is essential to consult with a tax expert or check out the main IRS site for the most up-to-date and precise information concerning eligibility, claiming procedures, and available assistance.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on incomes paid to all workers whether they actually worked or not. To put it simply, even if the.
employees worked full time and earned money for full-time work, the company 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 during the calendar quarter.
In both cases, “earnings” consists of not simply cash payments however also a part of the cost of employer.
supplied healthcare. Employee Retention Credit 2021 Family Members
Employers can be right away repaid for the credit by decreasing the quantity of payroll taxes they.