Lets talk first about Employee Retention Credit Consulting :
Our group here what do these men doing everyone in this room is assisting teach people about ERC and uh always offer a gorgeous breakfast and have individuals really learn more about the program we ought to head to the room where we are able to show some of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I mean you understand if you just 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 imply it’s just I imply think of how many actual customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified 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 have the ability to track it you understand when you
get this you know the check is gone for sure and that’s when they pay so they do not pay anything up until they really receive the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they deposit it into their checking account and they can truly rely on Wonder trust that the process has actually been ended up 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 understand what they’re doing and that’s what you require you need 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 actually essential today the staff member retention credit which most of you have never become aware of I definitely had not heard of it till very recently and discovered a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call your bank manager and say give 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 representative for this I like this program it’s going away very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used organizations 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund alright go on sorry I simply have to make sure we got that point I mean that’s a huge difference a loan versus cash cash I like cash money that’s what we’re speaking about 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 stunning tough check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works since it seems like to me if it’s a if it’s employee retention credit that individual needed to be a staff member so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for staff members right you had to have owned a business but it’s based upon you having W-2 employees in America not 10.99. 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 6 months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you get back per employee that was on a W-2 in those six quarters so the estimation in 2020 to be specific Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to an optimum of seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus since 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 approximately five thousand Max and then what takes place 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 employee that is because that’s a lot of cash it is now there’s a caution here the PPP money would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge certainly now the big concern is why does nobody learn about this since appearance when I first became aware of this when I first met Josh you know I have actually got lots of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make numerous numerous investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t believe it due to the fact that I utilize 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 been worthy of and we used them carefully to stay alive throughout the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician pals Governor Senators they didn’t understand about it I imply that’s how you know that’s how misinformation is that there’s no info out there then a bunch of people told 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 worker retention credit you understand 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 extremely clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation 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 chaos since remember in the initial cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the original program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person 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 do not do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accountant’s never done this before unless you have an account that went into this company and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big business customers have worked with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, company whose service is fully or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all employers no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. When the.
company’s gross invoices exceed 80% of an equivalent 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 qualifying earnings paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries differs by whether a company had, typically, basically than.
100 staff members in 2019.
Business that focus on ERC filing support generally provide know-how and support to help businesses browse the intricate procedure of declaring the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Consulting
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon factors such as your market, profits, and operations. If you meet the requirements for the credit and determine the maximum credit quantity you can declare, they can assist identify.
Paperwork and Computation: ERC filing services will help in gathering the needed documentation, such as payroll records and financial declarations, to support your claim. They will also assist calculate the credit quantity based upon eligible salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these business can examine your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you amend previous tax returns to declare these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the essential forms and paperwork in your place. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have progressed with time. These companies stay upgraded with the current modifications and make sure that your filings adhere to the most current standards. They can likewise provide ongoing support if the IRS requests extra info or performs an audit related to your ERC claim.
It is very important to research study and vet any business providing ERC filing support to ensure their credibility and knowledge. Try to find established companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who offer ERC submitting support.
Keep in mind that while these companies can supply valuable support, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to encourage companies to keep and pay their staff members during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, companies should meet one of two criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As pointed out earlier, for 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a percentage (as much as 70%) of certified incomes paid to workers, consisting of specific health insurance expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. Nevertheless, the very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, allowing qualified employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides a chance for organizations to change prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Form 941. If the credit goes beyond the quantity of work taxes owed, the excess can be refunded to the company.
It is essential to note that the ERC provisions and eligibility criteria have progressed gradually. The best course of action is to speak with a tax expert or visit the official internal revenue service site for the most in-depth and up-to-date information regarding the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, an organization should fulfill one of the following requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt companies, however there are some exceptions. Government entities and services that received a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC involves completing the necessary types and including the credit on your work income tax return (usually Type 941). The exact time it requires to process the credit can differ based on a number of factors, including the complexity of your organization and the work of the IRS. It’s suggested to consult with a tax expert for guidance specific to your circumstance.
There are several business that can help with the process of declaring the ERC. Some widely known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information supplied here is based upon basic understanding and might not reflect the most recent updates or changes to the ERC. It is very important to speak with a tax expert or check out the official IRS website for the most precise and up-to-date info concerning eligibility, claiming procedures, and offered assistance.
Less than 100. If the employer had 100 or fewer employees typically in 2019, then the credit is based.
on earnings paid to all workers whether they in fact worked or not. In other words, even if the.
workers worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
permitted only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply cash payments however likewise a part of the expense of employer.
offered healthcare. Employee Retention Credit Consulting
Employers can be immediately repaid for the credit by lowering the quantity of payroll taxes they.