Lets talk first about Employee Retention Credit Fraud Irs :
Our group here what do these guys doing everybody in this room is assisting teach people about ERC and uh constantly supply a beautiful breakfast and have individuals truly discover the program we need to head to the space where we have the ability 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 countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I indicate you know if you just start to take a look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I suggest think of how many actual customers that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are confirmed 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
get this you know the check is gone for sure and that’s when they pay so they do not pay anything till they in fact get the money they do not pay bottom line Wonder trust anything till this letter is confirmed 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 actually been ended up and how many you believe you’ve processed considering 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 which’s what you require 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 Terrific here you’re at my YouTube channel we’re discussing something actually crucial today the employee retention credit which the majority of you have actually never ever heard of I definitely hadn’t heard of it till really recently and learned a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 contact your bank manager and say offer me a loan it doesn’t 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 ended up being yes the Ambassador and paid representative for this I like 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 simply start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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.
correct the cash cash payroll tax refund okay go on sorry I simply need to make certain we got that point I imply that’s a big distinction a loan versus money cash I like cash money that’s what we’re discussing alright 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 difficult check in the mail where you get real money from the internal revenue service all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that person had to be a worker so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for employees right you had to have owned a company but it’s based on you having W-2 staff members 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus because the turmoil 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 as much as 5 thousand Max and after that 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 6 thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be decreased 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 usually Kevin is if you took PPP money someplace 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 workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big undoubtedly now the big question is why does nobody understand about this since appearance when I initially heard about this when I initially satisfied Josh you understand I’ve got great deals of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially became aware of this I called BS I don’t 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 deserved and we utilized them wisely to stay alive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even contacted us to my political leader pals Guv Senators they didn’t learn about it I imply that’s how you understand that’s how false information is that there’s no information out there then a bunch of people told me well you can’t get it because 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 intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it really 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 process that’s all um and here there was turmoil due to the fact that keep in mind in the original cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial 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 made it clear to anyone about how to.
do this does your CFO know how to do this not truly he or she’s never ever done it in the past 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 company your accounting professional no your accounting professional’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 since 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 big business clients have worked with bottom line to recuperate 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 property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose organization is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Availability.
1. The credit is offered to all employers regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business 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 listed below 50% of the similar quarter in 2019. As soon as 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 qualifying earnings paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying salaries differs by whether a company had, typically, basically than.
100 workers in 2019.
Companies that focus on ERC filing support usually supply competence and support to assist organizations navigate the complicated procedure of declaring the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Fraud Irs
Eligibility Evaluation: These business will evaluate your organization’s eligibility for the ERC based upon aspects such as your market, profits, and operations. If you satisfy the requirements for the credit and recognize the maximum credit quantity you can declare, they can help figure out.
Paperwork and Estimation: ERC filing services will help in collecting the required documentation, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit amount based upon qualified earnings and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can examine your past payroll records and financials to determine prospective chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the necessary kinds and documents in your place. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have developed with time. These companies remain upgraded with the current changes and guarantee that your filings abide by the most present standards. If the Internal revenue service demands additional info or carries out an audit associated to your ERC claim, they can also offer continuous assistance.
It is very important to research study and veterinarian any business offering ERC filing assistance to ensure their trustworthiness and knowledge. Try to find established companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax experts who use ERC filing assistance.
Keep in mind that while these companies can provide valuable assistance, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage companies to keep and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, companies must satisfy one of two requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As discussed previously, for 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly 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 certified earnings paid to staff members, including particular health plan 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, organizations that received an Income Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they got a PPP loan. Nevertheless, the very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, allowing eligible companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to amend prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work tax returns, typically Form 941. If the credit surpasses the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It is very important to note that the ERC provisions and eligibility criteria have developed over time. The very best strategy is to speak with a tax professional or check out the official IRS site for the most updated and detailed info relating to the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, a business must meet one of the following criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. 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 significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and companies that got a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the required types and consisting of the credit on your employment tax return (usually Type 941). The exact time it takes to process the credit can differ based on a number of elements, consisting of the intricacy of your company and the workload of the internal revenue service. It’s suggested to seek advice from a tax professional for assistance particular to your scenario.
There are a number of business that can assist with the process of declaring the ERC. Some popular companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details supplied here is based upon general knowledge and might not reflect the most current updates or modifications to the ERC. It is very important to seek advice from a tax expert or visit the official IRS website for the most precise and up-to-date info regarding eligibility, claiming procedures, and readily available assistance.
Less than 100. If the company had 100 or less employees usually in 2019, then the credit is based.
on salaries paid to all staff members whether they in fact worked or not. To put it simply, even if the.
staff members worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
permitted just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just cash payments but also a portion of the expense of employer.
provided healthcare. Employee Retention Credit Fraud Irs
Payment.
Employers can be immediately reimbursed for the credit by lowering the quantity of payroll taxes they.