Lets talk first about Employee Retention Credit Acquired Business :
Our group here what do these men doing everybody in this room is helping teach people about ERC and uh constantly supply a beautiful breakfast and have people actually discover the program we must head to the space 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 hundreds of countless dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I mean you understand if you just start to take a look at a few 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 simply I imply think of the number of real customers 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 consumer so that’s how you have the ability to track it you understand when you
get this you understand the check is chosen sure which’s when they pay so they do not pay anything until they in fact receive 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 bank account and they can truly trust Wonder trust that the process has actually been completed and how many you believe you have actually processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand 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 Terrific here you’re at my YouTube channel we’re talking about something actually important today the staff member retention credit which most of you have never ever become aware of I certainly had not become aware of it up until extremely recently and learned a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 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 inform all of us about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very soon you got to find out everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge difference 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 fine go on sorry I just have to ensure we got that point I suggest that’s a huge difference a loan versus money money I like cash cash that’s what we’re speaking 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 gorgeous difficult check in the mail where you get real cash from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member retention credit that person needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you needed to have actually owned a business but it’s based on 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 six months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per worker 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 an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that take place um they just 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 workers 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 happens 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of cash it is now there’s a caution here the PPP cash would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big clearly now the big question is why does nobody understand about this since look when I first heard about this when I initially fulfilled Josh you understand I’ve got lots of investments in lots of companies I’m a major advocate for entrepreneurship in America and make many numerous investments in business owners of which numerous suffered through the pandemic when I initially became aware of this I called BS I don’t think it because 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 and that were well deserved and we used them wisely to stay alive throughout the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even contacted us to my politician pals Governor Senators they didn’t know about it I suggest that’s how you know that’s how false information is that there’s no details out there then a bunch of people told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s fascinating 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was mayhem because remember in the original cares act you could refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accountant’s never done this prior to unless you have an account that went into this organization and bottom line my company Kevin has stayed in business because 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax joblessness tax work opportunity 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 employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose company is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all companies no matter size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization 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 equivalent quarter in 2019. Once the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying 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 certifying salaries varies by whether a company had, usually, basically than.
100 employees in 2019.
Business that specialize in ERC filing help usually supply expertise and support to help businesses browse the intricate procedure of claiming the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Acquired Business
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based upon factors such as your market, income, and operations. If you meet the requirements for the credit and identify the optimum credit quantity you can claim, they can assist figure out.
Paperwork and Calculation: ERC filing services will help in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help determine the credit quantity based upon eligible salaries and other certifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can review your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and submit the necessary types and documentation on your behalf. This includes completing Kind 941 or any other required tax return.
Compliance and Updates: ERC regulations and guidance have evolved in time. These companies stay updated with the latest changes and ensure that your filings comply with the most existing standards. They can likewise supply ongoing assistance if the internal revenue service demands extra info or conducts an audit related to your ERC claim.
It’s important to research study and veterinarian any company using ERC filing assistance to guarantee their credibility and know-how. Look for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax specialists who offer ERC submitting assistance.
Bear in mind that while these business can provide important help, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage companies to keep and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To certify, employers should satisfy one of two criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a considerable decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly 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 percentage (up to 70%) of certified incomes paid to workers, including particular health insurance costs. 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, services that received a Paycheck Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. Nevertheless, the exact same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, allowing qualified employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, normally Form 941. If the credit exceeds the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It’s important to note that the ERC arrangements and eligibility requirements have actually progressed in time. The very best strategy is to speak with a tax expert or go to the main internal revenue service site for the most up-to-date and comprehensive information concerning the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a service needs to satisfy among the following criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and organizations that received a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC includes completing the necessary types and including the credit on your employment tax return (generally Kind 941). The exact time it takes to process the credit can vary based upon several factors, including the complexity of your organization and the workload of the internal revenue service. It’s advised to consult with a tax professional for guidance particular to your scenario.
There are several companies that can assist with the procedure of claiming the ERC. Some widely known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based on general understanding and may not show the most current updates or modifications to the ERC. It’s important to talk to a tax professional or visit the official IRS website for the most precise and updated details relating to eligibility, claiming procedures, and available help.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on salaries paid to all workers whether they in fact worked or not. Simply put, even if the.
employees 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 workers on average in 2019.
permitted only for incomes paid to employees who did not work during the calendar quarter.
In both cases, “wages” includes not simply cash payments however also a part of the cost of company.
offered healthcare. Employee Retention Credit Acquired Business
Employers can be instantly repaid for the credit by reducing the amount of payroll taxes they.