Lets talk first about Employee Retention Credit Grant Opportunity :
Our group here what do these guys doing everyone in this room is assisting teach people about ERC and uh always provide a lovely breakfast and have individuals really learn 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 business and I want to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of countless 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 simply begin to take a look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I mean consider how many real clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are confirmed 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 know the check is opted for sure which’s when they pay so they don’t pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can genuinely trust Wonder trust that the process has actually been finished and the number of you think you have actually processed considering that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they know 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 among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re speaking about something truly essential today the staff member retention credit which most of you have actually never ever become aware of I certainly had not become aware of it till extremely just recently and discovered a lot about it because this is probably the most affordable expense of capital for any small business anywhere
anytime if you have employees between five and five hundred so I have actually got the expert 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 challenging this isn’t like PPP we just phone 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’ve become yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund fine go on sorry I simply have to ensure we got that point I indicate that’s a big distinction a loan versus money cash I like cash money that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get actual cash from the IRS all right so let’s speak 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 individual had 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 needed to have actually owned a service but it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 employees and you paid federal payroll taxes that’s why you would be eligible so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’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 employee’s wage to an optimum 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 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 as much as 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of money it is now there’s a caveat here the PPP cash would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around ten thousand dollars a person 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 money you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the huge question is why does nobody understand about this because appearance when I first heard about this when I first fulfilled Josh you understand I’ve got lots of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make numerous lots of investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I don’t think it because I use the PPP we went through the money 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 wisely to survive during the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician good friends Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how misinformation is that there’s no details out there then a lot of people told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one learn about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our nation and they would process procedure 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 chaos due to the fact that remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really she or he’s never done it in the past do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accountant’s never done this before unless you have an account that entered into this organization and bottom line my firm Kevin has actually been in business since 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate customers have actually worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax joblessness tax work chance 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 developed to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, company whose company is completely or partly suspended.
decline by more than 50%.
Accessibility.
1. The credit is readily available to all employers regardless of size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes varies by whether an employer had, typically, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing help normally offer proficiency and support to assist organizations navigate the complex process of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Grant Opportunity
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based on aspects such as your industry, income, and operations. They can assist figure out if you satisfy the requirements for the credit and determine the optimum credit quantity you can claim.
Paperwork and Estimation: ERC filing services will help in gathering the essential documents, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit quantity based on qualified salaries and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you change prior income tax return to declare these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the needed types and documentation in your place. This includes finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have progressed over time. These companies remain updated with the latest changes and make sure that your filings comply with the most current standards. If the IRS requests additional details or carries out an audit related to your ERC claim, they can also offer continuous support.
It is necessary to research study and vet any business providing ERC filing assistance to ensure their reliability and expertise. Look for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax experts who offer ERC submitting assistance.
Keep in mind that while these business can offer valuable help, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure accurate filings.
The Worker 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 services to keep and pay their employees during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To certify, employers must fulfill one of two requirements:.
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 receipts. As discussed earlier, for 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease 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 amount amounts to a percentage (approximately 70%) of qualified salaries paid to workers, consisting of particular health insurance expenses. 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, companies that received an Income 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 got a PPP loan. The same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, enabling qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to change prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment tax returns, normally Type 941. The excess can be refunded to the employer if the credit goes beyond the amount of work taxes owed.
It is necessary to note that the ERC provisions and eligibility criteria have actually progressed with time. The best course of action is to consult with a tax professional or go to the main IRS website for the most detailed and current info concerning the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, an organization must satisfy among the following requirements:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the very 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.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and services that got a PPP loan might have restrictions on claiming the credit.
The process for declaring the ERC includes finishing the needed kinds and including the credit on your work income tax return (usually Form 941). The exact time it requires to process the credit can vary based on several elements, consisting of the complexity of your service and the workload of the internal revenue service. It’s recommended to talk to a tax expert for assistance specific to your circumstance.
There are several companies that can help with the procedure of declaring the ERC. Some widely known companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details provided here is based on basic understanding and may not reflect the most recent updates or changes to the ERC. It is very important to speak with a tax professional or check out the official IRS site for the most current and precise information relating to eligibility, claiming treatments, and readily available help.
Less than 100. If the employer had 100 or less employees typically in 2019, then the credit is based.
on salaries paid to all workers whether they really worked or not. In other words, even if the.
employees worked full-time and got paid for full time work, the employer 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 incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just money payments however also a part of the expense of employer.
provided healthcare. Employee Retention Credit Grant Opportunity
Payment.
Companies can be right away repaid for the credit by reducing the quantity of payroll taxes they.