Lets talk first about Employee Retention Credit Restaurant :
Our team here what do these people doing everyone in this room is helping teach people about ERC and uh always provide a gorgeous breakfast and have individuals truly find out about 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 business and I want to see that what is this this is uh hundreds of countless 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 suggest you know if you just start to take a look at some of these here I mean 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 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 internal revenue service heading to the client 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 really receive the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their bank account and they can really trust Wonder trust that the process has been completed and how many you think you have actually processed given that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’s what you need 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 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 never ever become aware of I definitely had not become aware of it until really recently and learned a lot about it since this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply contact your bank supervisor and say give me a loan it does not 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 like this program it’s going away very soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money money payroll tax refund alright go on sorry I just have to make sure we got that point I suggest that’s a huge distinction a loan versus cash cash I like cash cash that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a stunning tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that individual had to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have owned an organization 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 eligible 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 correct so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s salary to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s income to an optimum of seven thousand per quarter how did that occur um they just 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 as much as 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six 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 caution here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money 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 staff members and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the huge question is why does no one know about this because appearance when I first heard about this when I initially fulfilled Josh you know I have actually got great deals of financial investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I don’t think it since I use the PPP we went through the cash 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 wisely to stay alive during the pandemic so when I heard about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician buddies Governor Senators they didn’t know about it I suggest that’s how you know that’s how false information is that there’s no info out there then a lot of people told me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does no one understand about the employee retention credit you understand what’s intriguing you’re discussing 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 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 process process that’s all um and here there was mayhem since keep in mind in the initial cares act you might refrain from doing both programs so if you had actually done PPP you could not do ERC in the original program and when they changed the law in 2021 the banks were not doing ERC because 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 know how to do this not really he or she’s never done it in the past 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 business your accountant no your accountant’s never ever done this before unless you have an account that entered into this business and bottom line my company Kevin has stayed in business because 2009 and we’ve been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge big business customers have dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity 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 developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose organization is totally or partly suspended.
decline by more than 50%.
Availability.
1. The credit is readily available to all employers no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s company is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The definition of certifying earnings differs by whether an employer had, on average, more or less than.
100 workers in 2019.
Business that focus on ERC filing support normally supply expertise and assistance to assist organizations navigate the intricate process of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Restaurant
Eligibility Evaluation: These companies will evaluate your service’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. If you meet the requirements for the credit and determine the optimum credit quantity you can claim, they can assist figure out.
Documentation and Calculation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and financial statements, to support your claim. They will also help compute the credit amount based upon qualified salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the necessary kinds and documentation on your behalf. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved in time. These companies stay upgraded with the current changes and make sure that your filings comply with the most existing standards. They can likewise supply ongoing assistance if the internal revenue service requests extra details or carries out an audit related to your ERC claim.
It’s important to research and vet any company providing ERC filing assistance to guarantee their reliability and know-how. Search for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax specialists who provide ERC filing support.
Remember that while these business can provide valuable assistance, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate businesses to retain and pay their workers during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To certify, companies need to fulfill one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As mentioned previously, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices 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 is equal to a portion (as much as 70%) of certified wages paid to employees, including certain health insurance 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: Initially, services that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. Nevertheless, the very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, enabling qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to amend prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, usually Kind 941. If the credit goes beyond the quantity of work taxes owed, the excess can be reimbursed to the employer.
It’s important to keep in mind that the ERC provisions and eligibility requirements have evolved with time. The best strategy is to talk to a tax professional or go to the main internal revenue service site for the most current and in-depth details relating to the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a business must fulfill among the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, government entities and companies that got a PPP loan might have restrictions on declaring the credit.
The process for declaring the ERC involves finishing the necessary kinds and consisting of the credit on your work income tax return (usually Type 941). The exact time it takes to process the credit can differ based upon numerous factors, consisting of the complexity of your company and the work of the internal revenue service. It’s recommended to speak with a tax expert for assistance specific to your situation.
There are several business that can assist with the procedure of declaring the ERC. Some popular companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details provided here is based on general understanding and may not show the most recent updates or modifications to the ERC. It is very important to talk to a tax expert or visit the main IRS site for the most updated and precise information regarding eligibility, declaring procedures, and available support.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on wages paid to all employees whether they actually worked or not. In other words, even if the.
staff members worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 workers on average in 2019, then the credit is.
permitted just for salaries paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just cash payments but likewise a portion of the expense of employer.
supplied healthcare. Employee Retention Credit Restaurant
Payment.
Companies can be immediately reimbursed for the credit by reducing the quantity of payroll taxes they.