Lets talk first about Employee Retention Credit 2021 Refundable :
Our team here what do these men doing everybody in this room is helping teach individuals about ERC and uh always provide a beautiful breakfast and have individuals actually learn more about the program we need to head to the space where we are able to show some of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I indicate you understand if you just begin to 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 suggest it’s just I indicate 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 confirmed the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you understand when you
receive this you understand the check is gone for sure and that’s when they pay so they do not pay anything till they actually get the cash they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they transfer it into their checking account and they can truly rely on Wonder trust that the process has actually been finished and how many you think you have actually processed since you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you need you need experts 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly important today the employee retention credit which the majority of you have never ever become aware of I certainly hadn’t become aware of it till very recently and found out 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’ve got the expert with me this is Josh Fox he’s the founder 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 call your bank supervisor and state provide me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all 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 discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used businesses 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 huge distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund okay go on sorry I just have to make sure we got that point I suggest that’s a big distinction a loan versus money money I like cash cash that’s what we’re talking 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 initial cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get actual cash from the internal revenue service all right so let’s discuss how it works since it seems like to me if it’s a if it’s staff member retention credit that person had to be a worker so I’m going to make the Presumption this money 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 service however 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 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my preferred part cash how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 five thousand Max and then what occurs 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 employee that is since that’s a great deal of cash it is now there’s a caveat 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 two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash 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 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 huge obviously now the big question is why does no one learn about this because look when I first found out about this when I first fulfilled Josh you understand I’ve got lots of financial investments in great deals of business I’m a major advocate for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which many suffered through the pandemic when I first found out 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 very 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 throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my politician pals Governor Senators they didn’t know about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of individuals told me well you can’t get it since 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 speaking about the banks Kevin due to the fact that 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 nation and they would process process 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 chaos due to the fact that keep in mind in the initial cares act you might not do 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 not doing ERC since it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly he or she’s never done it before 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 company your accountant no your accountant’s never ever done this before unless you have an account that went into this organization and bottom line my company Kevin has stayed in business because 2009 and we’ve been dealing 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 recover other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
employer whose service is fully or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Schedule.
1. The credit is available to all employers despite size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after the end 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 salaries paid after March 13th and before December 31, 2020.
The definition of qualifying earnings varies by whether a company had, usually, basically than.
100 workers in 2019.
Companies that concentrate on ERC filing assistance usually offer expertise and support to help organizations navigate the complicated process of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit 2021 Refundable
Eligibility Assessment: These companies will evaluate your business’s eligibility for the ERC based upon factors such as your market, income, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can declare, they can help identify.
Documents and Computation: ERC filing services will help in collecting the essential documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist compute the credit amount based on qualified wages and other qualifying expenditures.
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 determine potential chances for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the necessary types and paperwork in your place. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have actually evolved over time. These companies stay upgraded with the most recent changes and guarantee that your filings adhere to the most existing guidelines. They can also provide ongoing assistance if the IRS demands additional information or carries out an audit related to your ERC claim.
It is essential to research and vet any business offering ERC filing assistance to ensure their reliability and competence. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who offer ERC filing assistance.
Bear in mind that while these business can provide valuable help, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure accurate filings.
The Worker 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 motivate services to keep and pay their staff members during 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 companies, including for-profit companies, tax-exempt organizations, and particular governmental entities. To certify, employers must meet one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As mentioned previously, for 2021, a significant decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (up to 70%) of qualified salaries paid to staff members, including particular health insurance costs. 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, organizations that got an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. However, the very same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually 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 offers a chance for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, typically Form 941. If the credit surpasses the quantity of employment taxes owed, the excess can be reimbursed to the company.
It is essential to keep in mind that the ERC provisions and eligibility requirements have developed over time. The best course of action is to consult with a tax professional or go to the main IRS website for the most comprehensive and up-to-date details relating to the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, a business must fulfill among the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and businesses that received a PPP loan might have restrictions on claiming the credit.
The procedure for claiming the ERC involves finishing the necessary forms and consisting of the credit on your employment income tax return (typically Form 941). The exact time it takes to process the credit can vary based on numerous aspects, including the complexity of your service and the workload of the IRS. It’s advised to seek advice from a tax expert for guidance particular to your circumstance.
There are several companies that can aid with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some popular business that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these business straight to ask about their services and fees.
Please note that the details supplied here is based on basic knowledge and may not show the most current updates or changes to the ERC. It’s important to talk to a tax professional or check out the official internal revenue service website for the most updated and accurate information concerning eligibility, claiming procedures, and available support.
Less than 100. If the company had 100 or less staff members typically in 2019, then the credit is based.
on incomes paid to all staff members whether they really worked or not. Simply put, even if the.
employees worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees typically in 2019, then the credit is.
allowed just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply money payments but likewise a portion of the cost of company.
offered health care. Employee Retention Credit 2021 Refundable
Payment.
Companies can be instantly reimbursed for the credit by lowering the quantity of payroll taxes they.