Lets talk first about Employee Retention Credit Officer Wages :
Our team here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh always supply a lovely breakfast and have individuals really learn more 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 wish to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I suggest you know if you simply begin to take a 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 indicate it’s simply I mean think about how many real customers that went through the program yeah this is the very end this is the party 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 know when you
get this you understand the check is chosen sure which’s when they pay so they don’t pay anything until they in fact receive the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their savings account and they can really trust Wonder trust that the process has been finished and the number of you think you have actually processed given that you started this we’re about 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 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 important today the staff member retention credit which the majority of you have never heard of I certainly had not heard of it until really just recently and learned a lot about it due to the fact that this is probably the lowest cost 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 Principles they’re the biggest 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 supervisor and state offer 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 have actually become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund fine 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 money 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 initial cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get real cash from the internal revenue service all right so let’s talk about how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual needed to be an employee so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have owned a company but it’s based on you having W-2 employees 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 six months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you need to be on the W-2 during that period 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 employee’s salary to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that take place um they simply altered the rules in.
2021 versus because the chaos 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 approximately 5 thousand Max and then what occurs 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 worker that is because that’s a great deal of cash it is now there’s a caution 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 two you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state 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 huge obviously now the huge concern is why does no one understand about this due to the fact that appearance when I first found out about this when I first fulfilled Josh you know I’ve got lots of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe 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 and that were well deserved and we used them sensibly to survive 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 called to my politician buddies Guv Senators they didn’t learn about it I suggest that’s how you know that’s how false information is that there’s no information out there then a lot of individuals told me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one understand about the employee retention credit you know what’s interesting you’re talking about the banks Kevin because in the PPP loan process 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 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 just procedure process 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 truly she or he’s never done it before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that entered into this business and bottom line my company Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate clients have dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
company whose service is totally or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all companies despite size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. When the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes differs by whether an employer had, usually, more or less than.
100 workers in 2019.
Business that specialize in ERC filing assistance generally offer competence and assistance to assist businesses navigate the intricate process of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Officer Wages
Eligibility Assessment: These companies will examine your business’s eligibility for the ERC based on elements such as your market, revenue, and operations. They can help determine if you satisfy the requirements for the credit and identify the optimum credit amount you can declare.
Paperwork and Computation: ERC filing services will assist in collecting the necessary paperwork, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit quantity based on qualified salaries and other qualifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to recognize possible chances for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the needed forms and documentation on your behalf. This includes finishing Form 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have actually evolved with time. These companies remain updated with the most recent modifications and make sure that your filings comply with the most existing standards. If the Internal revenue service requests additional info or performs an audit associated to your ERC claim, they can likewise offer ongoing support.
It is essential to research and vet any business using ERC filing assistance to ensure their credibility and expertise. Search for established firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax professionals who use ERC submitting assistance.
Bear in mind that while these business can offer important help, it’s always a great concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to maintain and pay their staff members during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit businesses, tax-exempt organizations, and particular governmental entities. To certify, employers must fulfill one of two criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. 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 invoices compared to the exact same quarter in 2019, or a 20% decline 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 amount amounts to a percentage (approximately 70%) of certified salaries paid to workers, consisting of certain health plan expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they got a PPP loan. Nevertheless, the same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, enabling eligible companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for companies to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Form 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 arrangements and eligibility requirements have evolved with time. The very best strategy is to speak with a tax expert or go to the official internal revenue service website for the most updated and detailed info concerning the ERC, including any recent legislative changes or updates.
To qualify for the ERC, an organization needs to meet one of the following criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a significant 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 invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and services that got a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC includes completing the essential types and consisting of the credit on your employment tax return (usually Form 941). The exact time it takes to process the credit can differ based on several elements, including the intricacy of your company and the work of the IRS. It’s advised to consult with a tax expert for assistance specific to your circumstance.
There are a number of business that can assist with the procedure of declaring the ERC. Some popular business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information provided here is based upon basic knowledge and might not show the most current updates or changes to the ERC. It is essential to speak with a tax professional or visit the main IRS site for the most up-to-date and precise information relating to eligibility, declaring treatments, and available help.
Less than 100. If the employer had 100 or fewer workers on average in 2019, then the credit is based.
on earnings paid to all employees whether they really worked or not. Simply put, even if the.
staff members worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
enabled just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” includes not just money payments however also a part of the cost of employer.
provided healthcare. Employee Retention Credit Officer Wages
Companies can be right away repaid for the credit by lowering the quantity of payroll taxes they.