Lets talk first about Employee Retention Credit Advance :
Our team here what do these guys doing everyone in this room is assisting teach people about ERC and uh always supply a stunning breakfast and have people truly learn more about the program we ought to head to the room where we have the ability to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I imply you understand if you simply start to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I suggest think of how many actual customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you’re able to track it you know when you
receive this you know the check is gone for sure which’s when they pay so they don’t pay anything until they actually get the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their bank account and they can genuinely trust Wonder trust that the procedure has actually been finished and how many you think you’ve processed given that you started this we have to do with 35 000 of these for
about 6 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 Wonderful here you’re at my YouTube channel we’re discussing something actually important today the staff member retention credit which the majority of you have never ever become aware of I definitely had not become aware of it up until very recently and found out a lot about it due to the fact that this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees in between 5 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 Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just 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 spokesperson for this I love this program it’s going away 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 simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered organizations three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone 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.
correct the money money payroll tax refund okay go on sorry I just have to make certain we got that point I imply that’s a huge difference a loan versus cash cash I like money money that’s what we’re talking about all right 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 cash from the IRS all right so let’s speak about how it works since 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 cash is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have owned an organization however it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 workers 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 very first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two three and four 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 throughout that duration now let’s talk my favorite part cash how much can you get back per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s salary to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that take place um they simply changed the rules in.
2021 versus due to the fact that 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 as much as 5 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 five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a restaurant 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 IRS so it’s big clearly now the huge question is why does no one understand about this because look when I initially found out about this when I initially satisfied Josh you know I have actually got great deals of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous lots of investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not think it due to the fact that I use the PPP we went through the money 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 deserved and we used them sensibly to survive throughout the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t understand about it I imply that’s how you know that’s how misinformation is that there’s no information out there then a lot of individuals told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one understand about the employee retention credit you know what’s intriguing you’re speaking about the banks Kevin since 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 country 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 turmoil because remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they altered 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 anyone about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it in the past do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never done this before unless you have an account that went into this business and bottom line my company Kevin has been in business considering that 2009 and we’ve 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 huge business customers have worked with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
company whose company is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all companies despite size including tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes varies by whether a company had, on average, more or less than.
100 employees in 2019.
Business that specialize in ERC filing assistance generally provide proficiency and assistance to assist services navigate the complex process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Advance
Eligibility Evaluation: These business will examine your organization’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. They can assist identify if you fulfill the requirements for the credit and recognize the optimum credit amount you can declare.
Paperwork and Calculation: ERC filing services will help in collecting the required documentation, such as payroll records and financial statements, to support your claim. They will also help determine the credit quantity based on eligible incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you change previous income tax return to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the essential types and documentation on your behalf. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have developed over time. These business remain updated with the latest modifications and ensure that your filings adhere to the most existing standards. They can likewise supply continuous support if the internal revenue service requests additional details or conducts an audit related to your ERC claim.
It’s important to research and veterinarian any company providing ERC filing support to guarantee their trustworthiness and know-how. Search for established firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who provide ERC submitting assistance.
Bear in mind that while these business can offer important assistance, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to motivate companies to retain and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, companies must meet one of two criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As pointed out previously, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts 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 Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of qualified incomes paid to workers, including certain health plan expenditures. 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, companies that got an Income Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got a PPP loan. Nevertheless, the exact same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, enabling eligible employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement provides a chance for companies to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, typically Form 941. The excess can be refunded to the employer if the credit goes beyond the amount of work taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have actually developed in time. The very best strategy is to consult with a tax professional or check out the official IRS website for the most detailed and current info relating to the ERC, including any recent legislative modifications or updates.
To receive the ERC, a company needs to meet among the following requirements:.
The business operations were completely 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 invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, federal government entities and companies that received a PPP loan might have restrictions on claiming the credit.
The procedure for claiming the ERC involves finishing the necessary forms and including the credit on your employment income tax return (typically Type 941). The exact time it requires to process the credit can vary based upon numerous factors, consisting of the complexity of your business and the workload of the IRS. It’s suggested to seek advice from a tax expert for guidance particular to your situation.
There are numerous companies that can assist with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll company. Some well-known business that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these companies directly to inquire about their services and costs.
Please keep in mind that the details provided here is based upon general knowledge and might not show the most current updates or changes to the ERC. It is necessary to speak with a tax expert or go to the official internal revenue service website for the most up-to-date and accurate info concerning eligibility, claiming treatments, and readily available support.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on salaries paid to all workers whether they in fact worked or not. Simply put, even if the.
staff members worked full-time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees on average in 2019, then the credit is.
permitted only for earnings paid to employees who did not work during the calendar quarter.
In both cases, “earnings” consists of not just cash payments however likewise a part of the expense of employer.
supplied health care. Employee Retention Credit Advance
Companies can be instantly repaid for the credit by decreasing the quantity of payroll taxes they.