Lets talk first about Employee Retention Credit 2021 Health Plan Expenses :
Our team here what do these people doing everyone in this space is assisting teach individuals about ERC and uh always provide a lovely breakfast and have people truly find out about the program we must head to the room where we have the ability to display a few of the checks that we are getting for business and I want to see that what is this this is uh numerous millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I mean you understand if you simply begin to take a look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I suggest think of 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 verified the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you understand when you
receive this you know the check is chosen sure which’s when they pay so they do not pay anything until they actually get the cash they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their bank account and they can truly trust Wonder trust that the process has actually been finished and the number of you think you’ve processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you require 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 truly important today the worker retention credit which the majority of you have never heard of I certainly had not become aware of it till very just recently and discovered a lot about it since this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have workers 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 largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just contact your bank manager and state give 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’ve ended up being 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 worker 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 offered companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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.
correct the money cash payroll tax refund alright go on sorry I just have to ensure we got that point I mean that’s a huge distinction a loan versus money money I like money cash that’s what we’re discussing 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 IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s employee 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 shareholders it’s for employees right you needed to have actually owned a business however it’s based upon you having W-2 staff members 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two three and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you have 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 staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s wage to a maximum 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 7 thousand per quarter how did that take place um they simply altered the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wanted 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 up to five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s say 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 cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the huge question is why does nobody know about this because look when I first found out about this when I first met Josh you know I’ve got great deals of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make numerous many financial investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I do not believe it due to the fact that I utilize 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 sensibly to survive during the pandemic so when I heard about this I said nah it can’t be true however when I dug around I even called to my political leader good friends Governor Senators they didn’t know about it I indicate that’s how you understand that’s how false information is that there’s no information out there then a bunch of people informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one understand about the worker retention credit you understand what’s intriguing you’re talking about the banks Kevin because in the PPP loan process 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 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 just procedure process that’s all um and here there was mayhem due to the fact that keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the original program and when they changed 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 ever made it clear to anybody about how to.
do this does your CFO know how to do this not really she or he’s never done it before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this organization and bottom line my firm Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have dealt with bottom line to recover other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Since of COVID-19 or whose gross invoices, company whose business is fully or partly suspended.
decrease by more than 50%.
1. The credit is offered to all employers despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings differs by whether a company had, usually, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing support typically supply expertise and support to help organizations browse the complicated process of claiming the credit. They can offer different services, including:.
How is the employee retention credit calculated? Employee Retention Credit 2021 Health Plan Expenses
Eligibility Evaluation: These companies will assess your business’s eligibility for the ERC based on elements such as your industry, revenue, and operations. They can help determine if you meet the requirements for the credit and identify the maximum credit quantity you can declare.
Paperwork and Computation: ERC filing services will help in gathering the required paperwork, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit amount based upon eligible incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can examine your previous payroll records and financials to recognize possible chances for retroactive credits. They can help you modify previous income tax return to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the essential kinds and paperwork in your place. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have evolved in time. These companies stay updated with the most recent modifications and guarantee that your filings adhere to the most present guidelines. They can likewise offer continuous assistance if the IRS demands additional information or conducts an audit related to your ERC claim.
It is necessary to research study and vet any business providing ERC filing help to guarantee their credibility and expertise. Look for established firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax specialists who use ERC submitting assistance.
Remember that while these companies can provide important assistance, it’s always a good concept to have a standard understanding of the ERC requirements and process yourself. This will help you make informed decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate services to maintain and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To qualify, companies need to fulfill one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined 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 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 amounts to a percentage (as much as 70%) of qualified earnings paid to staff members, including certain health plan 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: At first, businesses that got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they received a PPP loan. The exact same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, permitting eligible companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision provides an opportunity for services to amend prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, usually Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be reimbursed to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have actually evolved over time. The best strategy is to consult with a tax professional or go to the official IRS site for the most up-to-date and detailed details relating to the ERC, including any current legal modifications or updates.
To qualify for the ERC, a business should satisfy among the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a substantial decrease is defined as a 20% decrease 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 invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, federal government entities and companies that got a PPP loan may have constraints on claiming the credit.
The procedure for declaring the ERC includes finishing the necessary forms and including the credit on your work tax return (generally Kind 941). The exact time it takes to process the credit can vary based upon several factors, consisting of the complexity of your business and the work of the internal revenue service. It’s recommended to consult with a tax professional for assistance specific to your scenario.
There are numerous companies that can help with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some widely known business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and get in touch with these companies directly to ask about their services and charges.
Please note that the information offered here is based upon basic understanding and may not reflect the most recent updates or modifications to the ERC. It is necessary to seek advice from a tax professional or go to the official internal revenue service site for the most up-to-date and accurate information regarding eligibility, claiming procedures, and offered help.
Less than 100. If the company had 100 or fewer staff members typically in 2019, then the credit is based.
on earnings paid to all staff members whether they actually worked or not. Simply put, even if the.
workers worked full-time and got paid 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.
enabled just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just cash payments but likewise a portion of the cost of company.
provided health care. Employee Retention Credit 2021 Health Plan Expenses
Companies can be immediately compensated for the credit by decreasing the amount of payroll taxes they.