Lets talk first about Employee Retention Credit Application Form :
Our team here what do these people doing everyone in this space is helping teach individuals about ERC and uh constantly provide a beautiful breakfast and have individuals really find out about the program we must head to the room where we are able 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 hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I indicate you know if you just begin 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 mean it’s just I mean think about the number of actual 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 IRS heading to the client so that’s how you’re able to track it you know when you
receive this you know the check is gone for sure and that’s when they pay so they do not pay anything till they really get the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they transfer it into their bank account and they can really trust Wonder trust that the process has actually been finished and how many you believe you’ve processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you require you need professionals 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 talking about something actually important today the employee retention credit which most of you have never heard of I certainly had not heard of it till extremely just recently and learned a lot about it since this is probably the lowest expense of capital for any small company anywhere
anytime if you have workers 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 call up 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 us all about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I like 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 simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services 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 2 of them are loans and one’s a refund precisely 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 mean that’s a big difference a loan versus cash money I like cash cash 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 initial cares Act is the ERC and yes Kevin it is a stunning tough check in the mail where you get actual cash from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s employee retention credit that person needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have actually owned an organization but it’s based upon you having W-2 staff members in America not 10.99. As long as you had W-2 employees 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 first six months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my favorite part cash how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to a maximum of seven 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 wished to even get more to keep those employees 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 six thousand dollars per worker that is because that’s a great deal of money it is now there’s a caution here the PPP money would need to be reduced 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 cash someplace around 10 thousand dollars an individual so let’s state 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 money you would still get a million dollar in the mail from the IRS so it’s substantial undoubtedly now the huge concern is why does no one know about this because look when I initially became aware of this when I first fulfilled Josh you know I have actually got lots of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make many 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 believe it due to the fact that I utilize 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 carefully to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true however when I dug around I even called to my political leader buddies Guv Senators they didn’t learn about it I indicate that’s how you know that’s how false information is that there’s no info out there then a lot of individuals informed me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does no one learn about the employee retention credit you know what’s fascinating you’re speaking about the banks Kevin due to the fact that 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was turmoil since remember in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they changed 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 made it clear to any person 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 do not do it the payroll companies yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this business and bottom line my firm Kevin has been in business since 2009 and we’ve been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our big big corporate customers have worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose business is completely or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is offered to all companies despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether a company had, typically, more or less than.
100 staff members in 2019.
Business that concentrate on ERC filing assistance normally supply expertise and assistance to assist businesses navigate the intricate procedure of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Application Form
Eligibility Assessment: These companies will evaluate your company’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can claim, they can help identify.
Paperwork and Calculation: ERC filing services will assist in gathering the necessary documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit quantity based upon eligible salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can examine your past payroll records and financials to determine prospective chances for retroactive credits. They can assist you change previous tax returns to claim these refunds.
Filing Help: Business focusing on ERC filings will prepare and submit the necessary types and paperwork on your behalf. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed gradually. These companies remain upgraded with the latest changes and guarantee that your filings comply with the most present guidelines. If the IRS requests extra information or carries out an audit associated to your ERC claim, they can also supply continuous support.
It’s important to research study and vet any company providing ERC filing help to guarantee their credibility and expertise. Look for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax specialists who provide ERC submitting support.
Keep in mind that while these companies can supply important support, it’s always a good idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to keep and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit services, tax-exempt companies, and particular governmental entities. To qualify, companies should fulfill one of two requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As discussed previously, for 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant 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 immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a portion (as much as 70%) of certified salaries paid to staff members, including particular health insurance 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: Initially, businesses that received an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. The very same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, permitting eligible companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to change prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, usually Form 941. If the credit surpasses the quantity of work taxes owed, the excess can be refunded to the company.
It is very important to note that the ERC provisions and eligibility requirements have actually evolved with time. The best course of action is to consult with a tax professional or go to the official internal revenue service website for the most comprehensive and current details regarding the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, a company should meet one of the following requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly 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 limitations on claiming the credit.
The procedure for declaring the ERC involves finishing the necessary forms and consisting of the credit on your work income tax return (typically Type 941). The exact time it takes to process the credit can vary based on a number of elements, consisting of the complexity of your business and the workload of the IRS. It’s suggested to speak with a tax professional for guidance specific to your situation.
There are numerous business that can assist with the process of declaring the ERC. Some popular companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on basic knowledge and might not reflect the most current updates or modifications to the ERC. It’s important to talk to a tax professional or check out the official internal revenue service website for the most precise and current info regarding eligibility, claiming treatments, and offered assistance.
Less than 100. If the company had 100 or less workers typically in 2019, then the credit is based.
on salaries paid to all workers whether they in fact worked or not. To put it simply, even if the.
employees worked full-time and made money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 employees typically in 2019, then the credit is.
permitted only for wages paid to employees who did not work during the calendar quarter.
In both cases, “incomes” consists of not just cash payments but likewise a part of the expense of company.
offered health care. Employee Retention Credit Application Form
Companies can be right away compensated for the credit by decreasing the amount of payroll taxes they.