Lets talk first about Employee Retention Credit Regular Hours :
Our group here what do these guys doing everybody in this space is helping teach people about ERC and uh always provide a stunning breakfast and have individuals actually learn more about the program we should head to the room where we are able to display a few of the checks that we are getting for business and I want to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I imply you understand 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 imply it’s simply I mean consider how many actual customers that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you know when you
receive this you know the check is chosen sure and that’s when they pay so they don’t pay anything up until they in fact get the cash they don’t pay bottom line Wonder trust anything 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 procedure has been ended up and how many you think you have actually processed given that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you require you require 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 crucial today the staff member retention credit which most of you have never heard of I certainly hadn’t become aware of it until extremely recently and learned a lot about it due to the fact that this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the creator 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 simply phone your bank manager and say 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 have actually become yes the Ambassador and paid representative for this I like this program it’s disappearing soon you got to find out all about it let’s talk staff member 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 three chances 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.
correct the money money payroll tax refund all right go on sorry I just need to ensure we got that point I mean that’s a big distinction a loan versus cash cash I like cash money that’s what we’re talking 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 initial cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get actual cash 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 worker retention credit that individual needed to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have actually owned a business however it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 staff members 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 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part cash just how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per staff member 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 happen um they just changed the rules in.
2021 versus since 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 then 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 six thousand dollars per employee that is because that’s a lot of money it is now there’s a caveat here the PPP cash would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace 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 cash you would still get a million dollar in the mail from the IRS so it’s huge certainly now the big concern is why does no one know about this due to the fact that appearance when I initially found out about this when I first satisfied Josh you understand I have actually got great deals of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make numerous many investments in business owners of which numerous suffered through the pandemic when I first found out about this I called BS I don’t believe it since I utilize the PPP we went through the cash center Banks to get it it was extremely 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 stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my politician pals Guv Senators they didn’t know about it I indicate that’s how you know that’s how misinformation is that there’s no details 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 nobody know about the worker retention credit you know what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan process 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 country 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 turmoil since remember in the initial cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the initial 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 federal government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not really he or she’s never ever done it previously do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll company your accountant 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 stayed in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our huge big corporate customers have dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use tax joblessness 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 created to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
employer 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 despite size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is totally or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings differs by whether a company had, typically, more or less than.
100 staff members in 2019.
Companies that focus on ERC filing support typically supply knowledge and assistance to assist companies browse the complex procedure of claiming the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Regular Hours
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based on elements such as your industry, income, and operations. They can assist determine if you fulfill the requirements for the credit and identify the optimum credit quantity you can declare.
Documentation and Calculation: ERC filing services will help in collecting the required documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist calculate the credit amount based upon qualified salaries and other qualifying expenses.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can review your past 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 Help: Business concentrating on ERC filings will prepare and send the essential types and documents in your place. This includes completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have developed gradually. These companies stay upgraded with the latest changes and guarantee that your filings comply with the most existing standards. If the IRS requests additional details or conducts an audit related to your ERC claim, they can also provide ongoing assistance.
It’s important to research study and vet any business providing ERC filing support to ensure their trustworthiness and knowledge. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who offer ERC filing support.
Bear in mind that while these companies can offer valuable help, it’s always an excellent idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and ensure 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 procedures. The goal of the ERC is to motivate services to keep and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified employers, consisting of for-profit companies, tax-exempt organizations, and specific governmental entities. To certify, employers need to fulfill one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As pointed out earlier, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of certified salaries paid to employees, including certain health plan costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they got a PPP loan. The very same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, allowing qualified employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to modify prior-year tax returns 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 surpasses the quantity of work taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility criteria have evolved in time. The very best course of action is to talk to a tax expert or check out the main IRS site for the most comprehensive and up-to-date info relating to the ERC, consisting of any current legislative modifications or updates.
To get approved for the ERC, a company should meet one of the following requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt companies, but there are some exceptions. For example, government entities and organizations that received a PPP loan may have constraints on claiming the credit.
The process for claiming the ERC includes completing the essential kinds and consisting of the credit on your employment income tax return (usually Form 941). The exact time it takes to process the credit can differ based upon numerous factors, including the complexity of your organization and the work of the internal revenue service. It’s recommended to consult with a tax expert for assistance specific to your scenario.
There are a number of business that can help with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some popular business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and call these business directly to ask about their fees and services.
Please keep in mind that the information offered here is based on basic knowledge and might not reflect the most current updates or changes to the ERC. It is essential to seek advice from a tax professional or check out the main IRS site for the most updated and accurate info relating to eligibility, declaring procedures, and offered help.
Less than 100. If the employer had 100 or fewer employees typically in 2019, then the credit is based.
on earnings paid to all workers whether they in fact worked or not. To put it simply, even if the.
workers worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
permitted just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not just money payments but likewise a part of the cost of company.
offered healthcare. Employee Retention Credit Regular Hours
Employers can be instantly compensated for the credit by reducing the quantity of payroll taxes they.