Lets talk first about Employee Retention Credit Incentive Program :
Our team here what do these guys doing everyone in this space is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have people really discover 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 way I indicate you know if you just begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I indicate 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 validated 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 understand the check is opted for sure and that’s when they pay so they do not pay anything until they in fact get the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they transfer it into their savings account and they can really rely on Wonder trust that the procedure has actually been completed and the number of you think you’ve processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you require you need professionals 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 talking about something truly important today the employee retention credit which the majority of you have actually never become aware of I certainly had not become aware of it till very just recently and discovered a lot about it since this is probably the most affordable cost of capital for any small company 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 Principles 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 supervisor and say provide 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’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big distinction 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 fine go on sorry I just have to make sure we got that point I mean that’s a huge distinction a loan versus money cash I like cash cash 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 original cares Act is the ERC and yes Kevin it is a stunning tough check in the mail where you get actual money from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s staff member retention credit that person needed to be an employee 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 employees right you had to have actually owned a service however it’s based on you having W-2 staff members 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 qualified so you need 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 two three and 4 of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they simply altered 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 up to 5 thousand Max and then 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 five thousand in twenty twenty that’s twenty 6 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 lowered from the twenty 6 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 cash somewhere around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial certainly now the huge question is why does nobody understand about this because appearance when I first became aware of this when I first satisfied Josh you know I’ve got great deals of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous many financial investments in business owners of which numerous suffered through the pandemic when I first heard about this I called BS I don’t believe it due to the fact that I utilize the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans and that were well deserved and we used them carefully to stay alive throughout the pandemic so when I became aware of this I said nah it can’t hold true however when I dug around I even called to my politician good friends Guv Senators they didn’t know about it I imply that’s how you understand 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 because you took the PPP also not true so let’s ask Josh why does nobody learn about the employee retention credit you know what’s fascinating you’re talking 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure procedure that’s all um and here there was mayhem due to the fact that keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they changed 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 anyone about how to.
do this does your CFO understand how to do this not actually she or he’s never done it before 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 company your accountant no your accounting professional’s never done this prior to unless you have an account that entered into this service and bottom line my company Kevin has actually stayed in business since 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge big business clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose organization is completely or partially suspended.
decline by more than 50%.
1. The credit is offered to all employers despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable 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.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries varies by whether an employer had, usually, basically than.
100 employees in 2019.
Business that specialize in ERC filing help typically provide knowledge and assistance to help businesses browse the complicated process of declaring the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Incentive Program
Eligibility Assessment: These companies will evaluate your company’s eligibility for the ERC based upon factors such as your market, earnings, and operations. They can assist identify if you satisfy the requirements for the credit and recognize the optimum credit quantity you can claim.
Documentation and Estimation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit amount based upon qualified wages and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can evaluate your previous payroll records and financials to recognize possible chances for retroactive credits. They can assist you modify prior income tax return to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the needed types and documents on your behalf. This consists of completing Form 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved gradually. These companies stay updated with the most recent modifications and make sure that your filings comply with the most present guidelines. They can likewise offer ongoing support if the IRS demands additional details or carries out an audit related to your ERC claim.
It’s important to research study and veterinarian any company offering ERC filing assistance to guarantee their trustworthiness and expertise. Search for established companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who provide ERC filing assistance.
Bear in mind that while these business can provide important support, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate services to keep and pay their workers throughout 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 employers, including for-profit companies, tax-exempt companies, and certain governmental entities. To qualify, employers must meet one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross invoices. As discussed previously, for 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts 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 company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of qualified incomes paid to employees, consisting of particular health insurance expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they received a PPP loan. The same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, enabling eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for organizations to change prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, normally Form 941. If the credit goes beyond the amount of employment taxes owed, the excess can be refunded to the company.
It is very important to keep in mind that the ERC provisions and eligibility criteria have progressed with time. The best course of action is to talk to a tax expert or visit the main IRS website for the most detailed and current details relating to the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a service must meet one of the following requirements:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and organizations that received a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC includes finishing the needed kinds and consisting of the credit on your employment tax return (typically Type 941). The exact time it requires to process the credit can vary based on a number of elements, including the complexity of your organization and the workload of the IRS. It’s advised to seek advice from a tax professional for guidance particular to your situation.
There are a number of companies that can help with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some widely known business that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these companies straight to inquire about their fees and services.
Please keep in mind that the details supplied here is based on basic understanding and may not show the most current updates or modifications to the ERC. It is essential to seek advice from a tax expert or visit the official IRS site for the most up-to-date and accurate details regarding eligibility, claiming treatments, and available support.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on wages paid to all workers whether they in fact worked or not. Simply put, even if the.
employees worked full-time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
permitted only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “wages” consists of not simply cash payments however also a portion of the expense of employer.
provided healthcare. Employee Retention Credit Incentive Program
Companies can be instantly compensated for the credit by lowering the quantity of payroll taxes they.