Lets talk first about Employee Retention Credit Webinar :
Our team here what do these men doing everyone in this room is helping teach individuals about ERC and uh constantly offer a gorgeous breakfast and have individuals truly learn about the program we need to head to the space where we have the ability to display a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I imply you understand if you just begin to take a look at a few 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 think of how many real clients that went through the program yeah this is the very end this is the celebration 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 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 do not pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their bank account and they can really trust Wonder trust that the procedure has been finished and the number of you think you’ve processed since you began this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need you need professionals 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 Wonderful here you’re at my YouTube channel we’re discussing something really essential today the staff member retention credit which the majority of you have never heard of I definitely hadn’t become aware of it up until really just recently and found out a lot about it because this is probably the lowest expense of capital for any small company anywhere
anytime if you have staff members 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 Ideas 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 just call up 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 inform us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund all right go on sorry I just need to ensure we got that point I indicate that’s a huge distinction a loan versus cash money I like cash cash 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 original cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get real cash from the internal revenue service all right so let’s speak about how it works since it sounds like to me if it’s a if it’s employee retention credit that individual had to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you needed to have actually owned a service but it’s based on 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 correct so there were six quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the employee’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to a maximum of seven thousand per quarter how did that take place um they just altered the rules in.
2021 versus because 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 up to 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you come up with twenty six 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 great deal of cash it is now there’s a caution here the PPP money would need to be lowered 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 typically Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment 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 internal revenue service so it’s huge obviously now the big concern is why does nobody learn about this due to the fact that look when I initially became aware of this when I first met Josh you understand I have actually got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many many investments in business owners of which many suffered through the pandemic when I first found out about this I called BS I do not believe it because I use 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 and that were well deserved and we used them carefully to survive throughout the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even called to my politician friends Guv Senators they didn’t learn about it I suggest that’s how you know that’s how misinformation is that there’s no details out there then a bunch of people informed 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 understand about the employee retention credit you understand what’s intriguing you’re discussing the banks Kevin since in the PPP loan procedure 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 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 chaos due to the fact that remember in the original cares act you could refrain from doing 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 made it clear to any person about how to.
do this does your CFO understand how to do this not actually he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this company and bottom line my company Kevin has actually been in business considering that 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge big business clients have actually worked with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
company whose business is fully or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all employers no matter size including tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying salaries differs by whether an employer had, usually, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing help generally supply knowledge and support to help businesses browse the complex procedure of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Webinar
Eligibility Evaluation: These business will assess your company’s eligibility for the ERC based on elements such as your market, income, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can claim, they can help identify.
Paperwork and Estimation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and monetary statements, to support your claim. They will also assist calculate the credit amount based on eligible incomes and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and submit the required forms and documents in your place. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have actually evolved gradually. These business remain upgraded with the latest changes and make sure that your filings comply with the most present standards. If the Internal revenue service requests extra details or conducts an audit related to your ERC claim, they can likewise supply continuous support.
It is necessary to research and vet any company providing ERC filing support to ensure their credibility and competence. Look for established firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who offer ERC filing support.
Keep in mind that while these business can offer important support, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified choices and guarantee accurate filings.
The Employee 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 encourage businesses to maintain and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit organizations, tax-exempt companies, and particular governmental entities. To qualify, companies should fulfill one of two criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As discussed previously, for 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross receipts compared to the very 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 employer’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of certified wages paid to staff members, consisting of particular health plan expenses. 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, 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 permits organizations to claim the ERC even if they got a PPP loan. The very same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, enabling eligible companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for organizations to modify prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment income tax return, usually Kind 941. If the credit exceeds the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually progressed in time. The very best course of action is to seek advice from a tax professional or go to the official internal revenue service site for the most detailed and up-to-date information relating to the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, a company should satisfy one of the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a considerable decline is specified 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% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and services that got a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes completing the needed forms and including the credit on your employment tax return (typically Type 941). The exact time it requires to process the credit can differ based on numerous aspects, including the complexity of your business and the work of the IRS. It’s advised to talk to a tax expert for guidance particular to your scenario.
There are numerous companies that can help with the procedure of declaring the ERC. Some popular companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based upon basic knowledge and may not reflect the most recent updates or modifications to the ERC. It is very important to talk to a tax professional or check out the official IRS site for the most accurate and up-to-date details regarding eligibility, declaring procedures, and available help.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on wages paid to all employees whether they actually worked or not. In other words, even if the.
employees worked full time and earned money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers on average in 2019, then the credit is.
permitted only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just cash payments however likewise a part of the cost of employer.
supplied health care. Employee Retention Credit Webinar
Employers can be immediately repaid for the credit by minimizing the amount of payroll taxes they.