Lets talk first about Employee Retention Credit Footnote Disclosure :
Our group here what do these guys doing everybody in this space is helping teach individuals about ERC and uh always provide a lovely breakfast and have people actually discover the program we must head to the space where we have the ability to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I imply you know if you just start 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 suggest think of the number of real customers 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 client so that’s how you’re able to track it you understand when you
receive this you understand the check is opted for sure and that’s when they pay so they don’t pay anything up until they actually get the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their bank account and they can truly rely on Wonder trust that the process has actually been finished and the number of you think you have actually 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 and that’s what you need you require experts 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 crucial today the worker retention credit which the majority of you have actually never ever become aware of I definitely hadn’t heard of it until very recently and learned a lot about it due to the fact that this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 simply call your bank manager and say give 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 representative for this I love this program it’s going away soon you got to learn everything about it let’s talk staff member 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 organizations 3 opportunities 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.
remedy the cash cash payroll tax refund fine go on sorry I simply have to ensure we got that point I indicate that’s a big difference a loan versus money money I like money cash that’s what we’re talking 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 original cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual cash from the internal revenue service all right so let’s talk about how it works since it sounds like to me if it’s a if it’s worker retention credit that person needed to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for staff members right you had to have actually owned a business however it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 staff members 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 6 months of 2021 on the W-2 correct so there were six quarters the program was open well stroll 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. fine so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my favorite part money how much can you get back per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus because 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 approximately five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of money it is now there’s a caveat here the PPP cash would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing usually 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 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 big clearly now the huge concern is why does no one learn about this since look when I first found out about this when I initially fulfilled Josh you know I have actually got great deals of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I do not believe it since 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 which were well deserved and we used them carefully to survive throughout the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even contacted us to my politician friends Governor Senators they didn’t understand about it I imply that’s how you know that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s fascinating you’re speaking about the banks Kevin since 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 country and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was mayhem because keep in mind 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 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 ever made it clear to anyone about how to.
do this does your CFO know how to do this not really he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never done this before unless you have an account that entered into this business and bottom line my company Kevin has been in business since 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a lot of our big big business customers have dealt 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 property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
employer whose company is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Accessibility.
1. The credit is offered to all employers no matter size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. When the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Business that focus on ERC filing assistance typically offer knowledge and support to help businesses browse the complex process of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Footnote Disclosure
Eligibility Evaluation: These business will assess your organization’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can claim, they can help determine.
Documents and Calculation: ERC filing services will help in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise assist compute the credit quantity based on eligible earnings and other qualifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to determine possible chances for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the required forms and documentation in your place. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have progressed in time. These companies remain updated with the latest modifications and make sure that your filings adhere to the most current guidelines. They can likewise provide ongoing support if the IRS demands additional info or conducts an audit related to your ERC claim.
It’s important to research study and veterinarian any company using ERC filing assistance to guarantee their credibility and proficiency. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who provide ERC filing assistance.
Keep in mind that while these business can offer valuable assistance, it’s always a great idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make informed choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate services to maintain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit companies, tax-exempt companies, and specific governmental entities. To certify, companies need to satisfy one of two requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As discussed earlier, for 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of certified incomes paid to employees, including specific health plan expenditures. 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 a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they received 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 expanded and enhanced, allowing eligible employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for services to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment tax returns, normally Type 941. The excess can be refunded to the company if the credit surpasses the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility criteria have actually evolved in time. The best strategy is to talk to a tax expert or visit the main IRS website for the most in-depth and updated information regarding the ERC, including any recent legal changes or updates.
To get approved for the ERC, a service needs to fulfill one of the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, government entities and organizations that got a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC involves finishing the required kinds and consisting of the credit on your work income tax return (typically Type 941). The exact time it requires to process the credit can differ based on numerous elements, including the complexity of your company and the workload of the IRS. It’s recommended to consult with a tax expert for assistance specific to your situation.
There are a number of companies that can aid with the process of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some popular companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and get in touch with these business directly to inquire about their fees and services.
Please note that the info supplied here is based on basic knowledge and may not show the most recent updates or modifications to the ERC. It is essential to consult with a tax professional or go to the official IRS website for the most current and precise details concerning eligibility, claiming procedures, and readily available assistance.
Less than 100. If the company had 100 or fewer staff members typically in 2019, then the credit is based.
on incomes paid to all employees whether they actually worked or not. Simply put, even if the.
workers worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
allowed just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments but likewise a portion of the cost of company.
offered healthcare. Employee Retention Credit Footnote Disclosure
Payment.
Companies can be immediately reimbursed for the credit by reducing the amount of payroll taxes they.