Lets talk first about Employee Retention Credit And Restaurant Revitalization Fund :
Our team here what do these people doing everybody in this space is assisting teach individuals about ERC and uh constantly provide a gorgeous breakfast and have individuals really discover the program we need to head to the room where we are able to show some 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 literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I mean you know if you just start to take a look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I indicate think of 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 confirmed and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you know when you
get this you know the check is opted for sure and that’s when they pay so they do not pay anything until they really receive the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they transfer it into their checking account and they can really trust Wonder trust that the procedure has been ended up and how many you think you have actually processed because you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need you need specialists 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 Terrific here you’re at my YouTube channel we’re speaking about something truly crucial today the employee retention credit which the majority of you have never become aware of I certainly had not heard of it till very recently and discovered a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members between 5 and five hundred so I have actually got the specialist 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 not easy this isn’t like PPP we just call up your bank supervisor and state offer me a loan it does not 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 spokesperson for this I love 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 just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund okay go on sorry I simply have to make certain we got that point I indicate that’s a big distinction a loan versus money money I like money money 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 difficult check in the mail where you get real 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 worker retention credit that individual needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you had to have actually owned an organization however it’s based upon you having W-2 employees 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 need to be on payroll in 2020 on the W-2 and you need 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 walk us through the 6 quarters so you had quarters two 3 and four 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 throughout that duration now let’s talk my preferred part money just how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the chaos of the pandemic so they wished 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 after that what takes place 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 staff member that is since that’s a lot of money it is now there’s a caveat here the PPP cash would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York 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 internal revenue service so it’s substantial clearly now the huge concern is why does nobody learn about this because appearance when I first heard about this when I initially satisfied Josh you know I’ve got great deals of investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not think it because 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 which were well should have and we used them carefully to survive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my politician buddies Governor Senators they didn’t understand about it I mean that’s how you know that’s how false information 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 real so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s interesting you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it really clear that if you desired 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 just procedure procedure that’s all um and here there was chaos since keep in mind in the initial cares act you might not do both programs so if you had done PPP you could not do ERC in the initial program and when they altered the law in 2021 the banks were refraining from doing ERC since 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 understand how to do this not really 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 accounting professional’s never done this before unless you have an account that entered into this service and bottom line my firm Kevin has stayed in business because 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have actually dealt with bottom line to recuperate other federal government programs we’ve done sales tax and utilize 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 created to motivate.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
employer whose business is totally or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all companies despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. Once the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion 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 wages paid after March 13th and before December 31, 2020.
The meaning of certifying salaries differs by whether a company had, on average, more or less than.
100 staff members in 2019.
Business that focus on ERC filing assistance typically offer competence and assistance to help companies browse the complicated process of claiming the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit And Restaurant Revitalization Fund
Eligibility Assessment: These business will assess your business’s eligibility for the ERC based upon elements such as your industry, profits, and operations. They can assist identify if you meet the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Estimation: ERC filing services will help in collecting the needed documents, such as payroll records and monetary statements, to support your claim. They will likewise assist determine the credit amount based upon qualified incomes and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can review your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you amend prior income tax return to claim these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the necessary kinds and paperwork in your place. This consists of finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved over time. These companies stay updated with the latest changes and ensure that your filings abide by the most present guidelines. If the Internal revenue service demands additional details or carries out an audit associated to your ERC claim, they can likewise supply ongoing assistance.
It’s important to research study and vet any company providing ERC filing help to guarantee their trustworthiness and knowledge. Look for recognized firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax experts who provide ERC filing support.
Remember that while these business can offer important support, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and ensure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage companies to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, employers should fulfill one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. As discussed previously, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of certified salaries paid to workers, including particular health plan costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. However, the same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, enabling qualified companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers an opportunity for businesses to modify prior-year tax returns and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, usually Form 941. The excess can be reimbursed to the employer if the credit goes beyond the amount of employment taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility requirements have actually progressed over time. The best strategy is to speak with a tax expert or check out the main internal revenue service website for the most current and detailed details concerning the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, an organization must fulfill one of the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and services that got a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC involves completing the essential kinds and consisting of the credit on your employment income tax return (typically Kind 941). The exact time it requires to process the credit can differ based upon several aspects, including the complexity of your service and the work of the IRS. It’s advised to consult with a tax expert for assistance specific to your circumstance.
There are several companies that can assist with the process of declaring the ERC. Some widely known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based on basic understanding and may not reflect the most current updates or modifications to the ERC. It’s important to speak with a tax professional or check out the official internal revenue service website for the most up-to-date and accurate information regarding eligibility, claiming procedures, and readily available support.
Less than 100. If the company had 100 or fewer employees usually in 2019, then the credit is based.
on salaries paid to all workers whether they actually worked or not. Simply put, even if the.
staff members worked full time and got paid for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members on average in 2019, then the credit is.
enabled only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments but likewise a portion of the expense of company.
supplied health care. Employee Retention Credit And Restaurant Revitalization Fund
Employers can be instantly compensated for the credit by reducing the quantity of payroll taxes they.