Lets talk first about Employee Retention Credit Legislation :
Our group here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh constantly offer a stunning breakfast and have people really discover the program we ought to head to the room where we are able to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless 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 imply you know if you just begin to take a look at a few 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 mean think of 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 verified the numbers are confirmed and the check is on the mail in the mail from the IRS 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 chosen sure and that’s when they pay so they don’t pay anything till they in fact 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 trust Wonder trust that the process has been ended up and how many you believe you’ve processed considering that you started 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 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 Terrific here you’re at my YouTube channel we’re discussing something really important today the worker retention credit which most of you have actually never ever heard of I definitely had not become aware of it until extremely just recently and found out a lot about it due to the fact that this is most likely the lowest expense of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator 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 simply phone your bank supervisor and state give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away soon you got to discover 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 used services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I just need to ensure we got that point I imply that’s a huge distinction a loan versus money money 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 gorgeous hard check in the mail where you get real cash from the IRS 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 worker retention credit that person needed to be a staff member so I’m going to make the Presumption this cash 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 upon 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three of 2021. alright 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 money how much can you get back per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to an optimum of seven thousand per quarter how did that take place um they just altered the rules in.
2021 versus because the mayhem 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 approximately five thousand Max and after that what happens 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 employee 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 decreased 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 on average Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s say 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 internal revenue service so it’s substantial obviously now the big question is why does no one learn about this due to the fact that appearance when I first found out about this when I initially fulfilled Josh you know I have actually got great deals of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make many lots of financial investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t think it since 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 which were well been worthy of and we used them wisely to survive throughout the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even contacted us to my political leader friends Guv Senators they didn’t learn about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a bunch of individuals informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody understand about the staff member 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 really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was chaos since remember in the original cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the original 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 government never made it clear to any person about how to.
do this does your CFO understand how to do this not actually he or she’s never done it in the past 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 before unless you have an account that entered into this company and bottom line my company Kevin has stayed in business given that 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our big big corporate clients have dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
company whose company is totally or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all companies regardless of size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company 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 comparable quarter in 2019. Once the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying earnings varies by whether an employer had, on average, basically than.
100 employees in 2019.
Business that concentrate on ERC filing assistance typically provide proficiency and assistance to assist companies navigate the complicated procedure of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Legislation
Eligibility Assessment: These companies will assess your company’s eligibility for the ERC based on aspects such as your market, earnings, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can declare, they can assist figure out.
Documents and Estimation: ERC filing services will help in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help compute the credit amount based upon eligible wages and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can evaluate your past payroll records and financials to identify possible opportunities for retroactive credits. They can assist you amend previous income tax return to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the necessary types and documents in your place. This includes finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have progressed in time. These companies remain updated with the current changes and ensure that your filings comply with the most current guidelines. If the IRS demands extra info or performs an audit related to your ERC claim, they can likewise provide continuous support.
It’s important to research study and vet any company offering ERC filing support to ensure their credibility and proficiency. Look for established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax professionals who use ERC filing support.
Remember that while these companies can provide valuable assistance, it’s always an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified choices and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to keep and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit organizations, tax-exempt companies, and particular governmental entities. To qualify, employers should satisfy 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 considerable decrease in gross receipts. As discussed previously, for 2021, a significant decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline 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 quantity amounts to a portion (as much as 70%) of qualified earnings paid to employees, consisting of certain health plan costs. 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, organizations that got an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they received a PPP loan. However, the same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision provides an opportunity for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Type 941. The excess can be refunded to the employer if the credit goes beyond the quantity of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have evolved with time. The best strategy is to speak with a tax professional or visit the official internal revenue service site for the most in-depth and updated info regarding the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, a business must fulfill one of the following criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a considerable decline 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% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes finishing the required types and consisting of the credit on your work income tax return (normally Kind 941). The exact time it takes to process the credit can vary based on a number of elements, consisting of the complexity of your company and the work of the IRS. It’s advised to seek advice from a tax expert for guidance particular to your situation.
There are a number of business that can help with the procedure of declaring the ERC. Some popular business that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info provided here is based on general knowledge and may not show the most current updates or modifications to the ERC. It’s important to speak with a tax professional or check out the official IRS website for the most current and precise info concerning eligibility, declaring treatments, and readily available help.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on wages paid to all employees whether they actually worked or not. In other words, even if the.
workers worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
allowed just for earnings paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply money payments but likewise a portion of the expense of employer.
supplied health care. Employee Retention Credit Legislation
Employers can be immediately repaid for the credit by reducing the quantity of payroll taxes they.