Lets talk first about Employee Retention Credit Extended Through 2021 :
Our group here what do these people doing everybody in this space is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have people truly learn more about the program we should head to the room where we are able to display a few 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 replicate copies of the letters that go to customers validating that the check is on the way I indicate you know if you simply begin to look at some 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 just I suggest think about how many real clients that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are verified 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
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 in fact get the cash they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they transfer it into their savings account and they can truly rely on Wonder trust that the procedure has been completed and the number of you believe you’ve processed because you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you require you require 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 discussing something actually crucial today the worker retention credit which the majority of you have never heard of I definitely hadn’t become aware of it until really just recently and learned a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees in between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 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 become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to find out all about it let’s talk employee 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 companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I simply have to make sure we got that point I suggest that’s a huge difference a loan versus cash money I like cash cash that’s what we’re speaking 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 lovely 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 seems like to me if it’s a if it’s worker retention credit that person 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 investors it’s for workers right you had to have owned a business however it’s based upon you having W-2 workers 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 appropriate so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part cash just how much can you return 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 employee’s wage to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to an optimum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the turmoil of the pandemic so they wanted 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 after that what occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a great deal of money it is now there’s a caveat here the PPP money would have to be minimized 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 somewhere around 10 thousand dollars an individual so let’s state hypothetically you owned a dining establishment 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 IRS so it’s substantial undoubtedly now the big question is why does no one know about this due to the fact that look when I first found out about this when I first fulfilled Josh you understand I’ve got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make lots of lots of investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I do not think it since I use 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 utilized them wisely to survive during the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even called to my politician friends Guv Senators they didn’t learn about it I mean that’s how you know that’s how misinformation is that there’s no information out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody learn about the employee retention credit you know what’s interesting you’re discussing the banks Kevin because in the PPP loan process the federal government made it very 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was mayhem since keep in mind in the initial cares act you might not do both programs so if you had done PPP you might not do 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 federal government never made it clear to anyone about how to.
do this does your CFO understand how to do this not truly she or he’s never done it previously do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll business your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this business and bottom line my firm Kevin has actually stayed in business because 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big business customers have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and use 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 worker 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 approximately $10,000 in wages paid by an.
Since of COVID-19 or whose gross receipts, company whose organization is fully or partially suspended.
decrease by more than 50%.
Accessibility.
1. The credit is available to all companies regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the company needs to fulfill 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.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries varies by whether a company had, usually, basically than.
100 workers in 2019.
Business that focus on ERC filing support typically supply competence and support to assist organizations browse the complicated procedure of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Extended Through 2021
Eligibility Assessment: These business will examine your company’s eligibility for the ERC based upon aspects such as your industry, revenue, and operations. They can help figure out if you fulfill the requirements for the credit and identify the maximum credit amount you can declare.
Documents and Computation: ERC filing services will assist in collecting the needed documents, such as payroll records and financial declarations, to support your claim. They will likewise assist compute the credit amount based on eligible wages and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can review your past payroll records and financials to identify possible opportunities for retroactive credits. They can assist you modify previous tax returns to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the necessary forms and documentation in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have progressed over time. These business remain updated with the latest changes and ensure that your filings adhere to the most present standards. They can also provide continuous assistance if the internal revenue service requests extra info or conducts an audit related to your ERC claim.
It is necessary to research and vet any company providing ERC filing assistance to guarantee their trustworthiness and expertise. Look for established firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who use ERC filing support.
Bear in mind that while these companies can offer important assistance, it’s always a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to encourage businesses to keep and pay their workers during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, companies must satisfy one of two criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As pointed out earlier, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts 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 quantity is equal to a portion (approximately 70%) of qualified incomes paid to employees, including specific 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 Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. However, the exact same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, enabling qualified employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides a chance for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment tax returns, generally Form 941. If the credit goes beyond the amount of work taxes owed, the excess can be reimbursed to the employer.
It is essential to note that the ERC arrangements and eligibility requirements have developed in time. The best strategy is to seek advice from a tax professional or check out the official IRS website for the most up-to-date and detailed info relating to the ERC, including any recent legislative changes or updates.
To qualify for the ERC, a company must satisfy one of the following criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, federal government entities and services that got a PPP loan might have restrictions on claiming the credit.
The procedure for claiming the ERC includes finishing the needed forms and including the credit on your work tax return (usually Type 941). The exact time it takes to process the credit can vary based on numerous elements, consisting of the complexity of your business and the work of the internal revenue service. It’s suggested to talk to a tax professional for guidance specific to your circumstance.
There are several companies that can help with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some popular companies that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these business straight to inquire about their charges and services.
Please keep in mind that the information supplied here is based upon basic knowledge and might not reflect the most recent updates or modifications to the ERC. It’s important to talk to a tax professional or visit the official IRS site for the most current and accurate details relating to eligibility, declaring procedures, and available 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.
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 workers on average in 2019.
enabled just for earnings paid to workers who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply money payments but also a part of the expense of company.
offered health care. Employee Retention Credit Extended Through 2021
Payment.
Employers can be right away compensated for the credit by reducing the amount of payroll taxes they.