Lets talk first about Employee Retention Credit Call Scam :
Our team here what do these people doing everyone in this room is assisting teach individuals about ERC and uh constantly supply a gorgeous breakfast and have individuals really learn about the program we ought to head to the space where we have the ability to show some of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I suggest you know if you simply begin 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 suggest it’s simply I mean think of the number of real customers that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you know when you
receive this you understand the check is gone 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 verified the check is on the way they transfer it into their checking account and they can genuinely trust Wonder trust that the process has actually been finished and the number of you think you have actually processed given that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you need you require 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 speaking about something actually essential today the staff member retention credit which most of you have never ever become aware of I definitely had not become aware of it till really just recently and learned a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator 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 your bank supervisor and say offer 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 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 worker retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed 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 practically everybody it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund all right go on sorry I just have to make certain we got that point I mean that’s a huge distinction a loan versus money money I like money money that’s what we’re discussing 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 beautiful tough check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker retention credit that individual had to be a staff member 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 staff members right you had to have owned an organization however it’s based on you having W-2 staff members 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 6 months of 2021 on the W-2 appropriate 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 3 of 2021. all right 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 get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to an optimum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus because 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 then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a great deal of money it is now there’s a caution here the PPP cash would have to be lowered 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 typically Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the big question is why does no one understand about this because appearance when I initially heard about this when I initially met Josh you understand I’ve got lots of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make lots of numerous investments in entrepreneurs of which numerous suffered through the pandemic when I initially found out about this I called BS I do not believe it since I use the PPP we went through the money 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 been worthy of and we utilized them sensibly to survive throughout the pandemic so when I became aware of this I stated nah it can’t be true but 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 know that’s how false information is that there’s no info out there then a bunch of individuals told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody know about the employee retention credit you know what’s interesting you’re talking about the banks Kevin due to the fact that 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 procedure 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 mayhem due to the fact that keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the federal government never made it clear to any person about how to.
do this does your CFO understand how to do this not really he or she’s never done it previously do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this organization 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 cash for Fortune 500 Fortune 1000 business so a great deal of our huge big corporate clients have dealt 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 property property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Since of COVID-19 or whose gross receipts, employer whose organization is totally or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is offered to all employers no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business 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 listed below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying earnings 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 wages differs by whether an employer had, usually, basically than.
100 staff members in 2019.
Business that specialize in ERC filing support typically supply know-how and support to help services browse the intricate procedure of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Call Scam
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based on aspects such as your market, income, and operations. If you fulfill the requirements for the credit and determine the maximum credit amount you can claim, they can assist figure out.
Paperwork and Estimation: ERC filing services will assist in gathering the required documentation, such as payroll records and financial declarations, to support your claim. They will likewise assist determine the credit amount based upon qualified salaries and other certifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these business can evaluate your previous payroll records and financials to determine potential chances for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the necessary forms and documentation on your behalf. This consists of finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved gradually. These business remain upgraded with the most recent modifications and ensure that your filings comply with the most existing guidelines. If the IRS requests extra information or performs an audit associated to your ERC claim, they can also supply ongoing support.
It is essential to research study and veterinarian any business providing ERC filing support to ensure their reliability and expertise. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax experts who use ERC submitting assistance.
Keep in mind that while these business can provide important assistance, it’s always a great concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and make sure accurate filings.
The Worker 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 organizations to keep and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, including for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, companies need to fulfill one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As discussed previously, for 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (as much as 70%) of certified earnings paid to workers, consisting of certain health plan expenditures. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they got a PPP loan. However, the very same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, enabling qualified employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to change prior-year income tax return and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, usually Type 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the company.
It’s important to note that the ERC provisions and eligibility requirements have actually progressed over time. The best strategy is to seek advice from a tax expert or go to the main internal revenue service site for the most in-depth and updated info regarding the ERC, including any recent legislative changes or updates.
To receive the ERC, a service should satisfy one of the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and companies that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes finishing the essential types and consisting of the credit on your employment tax return (normally Type 941). The exact time it takes to process the credit can vary based upon numerous aspects, consisting of the complexity of your business and the workload of the internal revenue service. It’s recommended to speak with a tax expert for guidance particular to your scenario.
There are several companies that can assist with the process of declaring the ERC. Some well-known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details provided here is based upon general understanding and might not show the most recent updates or modifications to the ERC. It is very important to seek advice from a tax professional or visit the main internal revenue service site for the most accurate and updated details regarding eligibility, declaring treatments, and readily available assistance.
Less than 100. If the employer had 100 or less staff members on average in 2019, then the credit is based.
on salaries paid to all staff members whether they really worked or not. In other words, 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 employer had more than 100 staff members on average in 2019.
allowed just for incomes paid to workers who did not work during the calendar quarter.
In both cases, “incomes” consists of not just money payments however likewise a part of the cost of employer.
offered health care. Employee Retention Credit Call Scam
Payment.
Companies can be immediately compensated for the credit by decreasing the quantity of payroll taxes they.