Lets talk first about Employee Retention Credit Massachusetts :
Our team here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh always supply a beautiful breakfast and have individuals really find out about the program we should head to the room where we have the ability to show a few 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 validating that the check is on the method I mean you know if you just start to look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I mean think of the number of actual customers 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 verified and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you understand when you
get this you understand the check is opted for sure which’s when they pay so they don’t pay anything until they in fact get the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the method 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 believe you’ve processed because you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand 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 Terrific here you’re at my YouTube channel we’re talking about something really important today the staff member retention credit which the majority of you have actually never heard of I definitely hadn’t become aware of it until really recently and found out a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members in between 5 and five hundred so I’ve got the expert 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 up your bank manager and state provide me a loan it does not 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 love this program it’s going away very soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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 money payroll tax refund alright go on sorry I simply need to make certain we got that point I suggest that’s a huge distinction a loan versus money money I like cash money that’s what we’re speaking 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 initial cares Act is the ERC and yes Kevin it is a gorgeous hard check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works since it sounds like to me if it’s a if it’s staff member retention credit that person had to be an employee so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have owned a company 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 have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part cash how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that take place um they just altered the rules in.
2021 versus since the chaos of the pandemic so they wished 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 up to 5 thousand Max and after that what occurs 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 staff member that is because that’s a great deal of money it is now there’s a caveat here the PPP cash would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average 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 money you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the big question is why does no one understand about this due to the fact that look when I first heard about this when I initially met Josh you understand I’ve got great deals of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I do not believe it due to the fact that I use the PPP we went through the money center Banks to get it it was very 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 sensibly to stay alive throughout the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t understand about it I mean that’s how you know that’s how misinformation is that there’s no details 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 nobody understand about the worker retention credit you understand what’s interesting 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 wanted 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 turmoil 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 since it’s not alone so you’re getting a tax refund so the government never made it clear to anyone about how to.
do this does your CFO know how to do this not truly she or he’s never done it before do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accountant’s never ever done this prior to unless you have an account that entered into this business and bottom line my firm Kevin has actually been in business considering that 2009 and we’ve been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business clients have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose business is totally or partially suspended.
decrease by more than 50%.
Schedule.
1. The credit is readily available to all employers regardless of size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The definition of qualifying salaries varies by whether an employer had, usually, more or less than.
100 employees in 2019.
Business that focus on ERC filing support normally supply proficiency and support to assist organizations navigate the intricate procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Massachusetts
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon elements such as your market, profits, and operations. If you meet the requirements for the credit and recognize the optimum credit amount you can declare, they can assist figure out.
Paperwork and Computation: ERC filing services will help in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will likewise assist compute the credit amount based upon qualified earnings and other certifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can review your previous payroll records and financials to determine possible chances for retroactive credits. They can help you modify previous income tax return to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the needed kinds and documents on your behalf. This consists of finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have actually progressed in time. These companies remain upgraded with the latest changes and ensure that your filings adhere to the most present guidelines. If the IRS requests extra info or performs an audit associated to your ERC claim, they can also provide ongoing assistance.
It is very important to research and vet any business offering ERC filing assistance to ensure their reliability and proficiency. Look for recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax specialists who use ERC submitting support.
Keep in mind that while these business can offer important help, it’s constantly a good idea to have a basic understanding of the ERC requirements and process yourself. This will help you make notified choices and guarantee 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 measures. The objective of the ERC is to encourage businesses to maintain 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 available to qualified companies, consisting of for-profit companies, tax-exempt organizations, and specific governmental entities. To qualify, companies need to satisfy one of two requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As pointed out earlier, for 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately 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 (as much as 70%) of certified earnings paid to workers, including certain health plan 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, organizations that received an Income Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. Nevertheless, the exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, permitting qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for companies to change prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, usually Type 941. If the credit surpasses the amount of employment taxes owed, the excess can be reimbursed to the employer.
It’s important to note that the ERC provisions and eligibility criteria have actually progressed gradually. The best course of action is to talk to a tax expert or check out the official internal revenue service site for the most up-to-date and detailed information concerning the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, an organization must meet among the following requirements:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt companies, however there are some exceptions. For instance, federal government entities and organizations that got a PPP loan might have restrictions on claiming the credit.
The procedure for declaring the ERC involves finishing the required kinds and including the credit on your employment income tax return (typically Form 941). The exact time it requires to process the credit can differ based on a number of aspects, consisting of the complexity of your organization and the workload of the internal revenue service. It’s advised to speak with a tax expert for assistance particular to your situation.
There are numerous companies that can assist with the procedure of claiming the ERC. Some popular business that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based on basic understanding and might not reflect the most current updates or changes to the ERC. It is very important to seek advice from a tax expert or check out the official internal revenue service site for the most precise and updated info relating to eligibility, declaring procedures, and offered assistance.
Less than 100. If the employer had 100 or fewer employees typically in 2019, then the credit is based.
on incomes paid to all workers whether they really worked or not. To put it simply, even if the.
workers worked full time and made money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 employees usually in 2019, then the credit is.
enabled just for wages paid to employees who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but also a part of the cost of company.
provided healthcare. Employee Retention Credit Massachusetts
Payment.
Employers can be immediately repaid for the credit by lowering the quantity of payroll taxes they.