Lets talk first about Employee Retention Credit Check Status :
Our team here what do these people doing everyone in this space is helping teach people about ERC and uh constantly offer a beautiful breakfast and have individuals really learn about the program we need to head to the space where we are able to display 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 numerous millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I suggest you understand if you simply start to 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 indicate it’s simply I suggest 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 validated 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 understand when you
receive this you know the check is opted for sure and that’s when they pay so they don’t pay anything until they in fact receive the money they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their bank account and they can really rely on Wonder trust that the procedure has been completed and the number of you think you’ve processed considering that you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing which’s what you need you require specialists 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 Fantastic here you’re at my YouTube channel we’re speaking about something really essential today the employee retention credit which the majority of you have actually never heard of I definitely hadn’t heard of it till extremely just recently and learned 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 workers in between five 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 Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just contact 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 tell us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away very soon you got to find out all 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 offered services 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 precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund all right go on sorry I just have to make certain we got that point I imply that’s a big difference a loan versus money cash I like money cash that’s what we’re speaking about fine 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 gorgeous hard check in the mail where you get real cash from the IRS all right so let’s speak about how it works because it sounds like to me if it’s a if it’s employee retention credit that individual had 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 employees right you had to have owned a business but it’s based upon 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 qualified 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 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my favorite part money how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s wage 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 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wished to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 up to 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of cash it is now there’s a caveat here the PPP money would need to be minimized from the twenty 6 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 somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge obviously now the huge concern is why does no one know about this because appearance when I first heard about this when I initially met Josh you understand I’ve got great deals of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make numerous lots of financial investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I do not believe it since 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 and that were well should have and we utilized them carefully to survive throughout the pandemic so when I heard about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician buddies Guv Senators they didn’t understand about it I indicate that’s how you know that’s how false information is that there’s no information out there then a lot of individuals informed me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin because in the PPP loan process the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country and they would process procedure 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 due to the fact that remember in the original cares act you might refrain from doing both programs so if you had done PPP you could not do ERC in the original program and when they changed 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 made it clear to anybody about how to.
do this does your CFO know how to do this not really she or he’s never done it previously do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accountant’s never ever done this before unless you have an account that entered into this organization and bottom line my firm Kevin has stayed in business given that 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate customers have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose business is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Availability.
1. The credit is available to all companies regardless of size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The definition of certifying salaries differs by whether a company had, typically, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing help typically supply knowledge and support to assist businesses navigate the complicated procedure of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Check Status
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based on factors such as your industry, earnings, and operations. They can assist figure out if you meet the requirements for the credit and determine the optimum credit quantity you can claim.
Paperwork and Computation: ERC filing services will help in collecting the necessary documents, such as payroll records and monetary declarations, to support your claim. They will likewise help calculate the credit quantity based on eligible salaries and other certifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can examine your past payroll records and financials to identify prospective opportunities for retroactive credits. They can assist you change prior tax returns to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the necessary types and documentation in your place. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have actually progressed gradually. These companies remain updated with the current modifications and make sure that your filings abide by the most existing standards. They can likewise offer continuous support if the IRS requests extra information or conducts an audit related to your ERC claim.
It is necessary to research study and veterinarian any business providing ERC filing help to ensure their reliability and expertise. Try to find recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who use ERC filing assistance.
Remember that while these business can supply important support, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified choices and ensure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate organizations to retain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, companies should meet one of two requirements:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. As discussed previously, for 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined 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 Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of certified wages paid to staff members, including certain health insurance expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that received an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. However, the exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, permitting qualified companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement provides a chance for businesses to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Form 941. The excess can be reimbursed to the employer if the credit goes beyond the quantity of employment taxes owed.
It is very important to note that the ERC arrangements and eligibility requirements have actually evolved over time. The very best course of action is to speak with a tax professional or visit the official internal revenue service website for the most up-to-date and in-depth info concerning the ERC, consisting of any current legislative changes or updates.
To receive the ERC, an organization should fulfill one of the following requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is offered to companies of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and businesses that received a PPP loan may have restrictions on claiming the credit.
The procedure for declaring the ERC includes completing the essential 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 aspects, consisting of the intricacy of your organization and the work of the internal revenue service. It’s advised to consult with a tax expert for assistance particular to your circumstance.
There are numerous business that can help with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some popular business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these business straight to inquire about their costs and services.
Please keep in mind that the info supplied here is based upon basic knowledge and may not reflect the most recent updates or modifications to the ERC. It’s important to speak with a tax professional or go to the main IRS website for the most accurate and updated information concerning eligibility, declaring treatments, and offered help.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on earnings paid to all employees whether they really worked or not. To put it simply, even if the.
employees worked full time and got paid 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.
enabled only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” includes not just cash payments but likewise a part of the expense of employer.
provided healthcare. Employee Retention Credit Check Status
Payment.
Employers can be right away repaid for the credit by minimizing the amount of payroll taxes they.