Lets talk first about Employee Retention Credit Service :
Our group here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh constantly offer a gorgeous breakfast and have people really learn more about the program we need to head to the space where we have the ability to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of 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 just start to 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 indicate it’s just I indicate think about how many actual clients 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 understand when you
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their savings account and they can truly trust Wonder trust that the process has actually been finished and the number of you believe you’ve processed since 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 which’s what you need you need 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 discussing something really essential today the worker retention credit which the majority of you have actually never ever become aware of I certainly hadn’t become aware of it up until really recently and found out a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have employees between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call your bank supervisor and state provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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.
fix the cash money payroll tax refund fine go on sorry I simply need to make certain we got that point I mean that’s a big distinction a loan versus money cash I like cash cash that’s what we’re discussing 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 actual money from the internal revenue service all right so let’s speak about how it works because it seems like to me if it’s a if it’s employee retention credit that person had to be an employee so I’m going to make the Presumption this money 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 service but it’s based upon you having W-2 workers in America not 10.99. As long as you had W-2 employees 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 first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part cash how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wanted 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 approximately 5 thousand Max and then what happens 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a lot of money it is now there’s a caveat here the PPP cash would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce 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 state hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred employees 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 huge question is why does no one understand about this since appearance when I first found out about this when I first fulfilled Josh you understand I’ve got great deals of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make lots of numerous 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 because I use the PPP we went through the cash 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 deserved and we utilized them sensibly to stay alive during the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even called to my political leader buddies Governor Senators they didn’t understand about it I mean that’s how you know that’s how false information is that there’s no info out there then a bunch of people informed me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody learn about the employee retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan process the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our country and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was mayhem because remember in the initial cares act you might not do both programs so if you had 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 due to the fact that it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone about how to.
do this does your CFO understand 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 companies yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually stayed in business given 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 great deal of our big huge corporate clients have actually worked with bottom line to recover other government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, employer whose service is fully or partly suspended.
decrease by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To qualify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying salaries differs by whether an employer had, on average, basically than.
100 staff members in 2019.
Companies that focus on ERC filing support usually supply competence and support to assist services navigate the complex procedure of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Service
Eligibility Assessment: These companies will examine your company’s eligibility for the ERC based upon aspects such as your industry, revenue, and operations. They can assist figure out if you fulfill the requirements for the credit and recognize the maximum credit quantity you can declare.
Documentation and Estimation: ERC filing services will assist in gathering the required documents, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit amount based on qualified incomes and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you change prior tax returns to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the required types and documentation in your place. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed with time. These business remain updated with the current modifications and ensure that your filings adhere to the most existing guidelines. They can likewise offer ongoing support if the IRS requests additional details or carries out an audit related to your ERC claim.
It’s important to research and veterinarian any company offering ERC filing assistance to guarantee their trustworthiness and knowledge. Look for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who offer ERC filing assistance.
Keep in mind that while these business can provide valuable support, it’s constantly a great concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified choices and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to motivate businesses to retain and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, including for-profit businesses, tax-exempt companies, and particular governmental entities. To qualify, companies need to satisfy one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. As discussed previously, for 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined 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 right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (up to 70%) of certified salaries paid to workers, consisting of certain health plan expenditures. 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 a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they got a PPP loan. However, the very same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing eligible employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for services to modify prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, generally Kind 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of work taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have evolved in time. The best strategy is to speak with a tax expert or go to the official IRS website for the most current and in-depth info regarding the ERC, including any current legislative modifications or updates.
To qualify for the ERC, an organization must fulfill among the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, federal government entities and services that received a PPP loan may have constraints on declaring the credit.
The procedure for claiming the ERC involves completing the essential types and consisting of the credit on your work tax return (generally Form 941). The exact time it takes to process the credit can vary based upon numerous elements, consisting of the intricacy of your company and the workload of the IRS. It’s advised to talk to a tax expert for guidance specific to your situation.
There are a number of companies that can help with the procedure of declaring the ERC. Some popular companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based on general understanding and may 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 main internal revenue service site for the most up-to-date and accurate information concerning eligibility, claiming treatments, and available assistance.
Less than 100. If the employer had 100 or less staff members usually in 2019, then the credit is based.
on earnings paid to all workers whether they in fact worked or not. Simply put, 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 workers typically in 2019, then the credit is.
allowed just for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments however also a part of the cost of company.
supplied healthcare. Employee Retention Credit Service
Companies can be right away compensated for the credit by lowering the quantity of payroll taxes they.