Lets talk first about File Amended 941 For Employee Retention Credit :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh always supply a beautiful breakfast and have individuals actually learn 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 ‘d like to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I suggest you understand if you simply start to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I imply consider the number of actual 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 client so that’s how you’re able to track it you understand when you
get this you know the check is gone for sure which’s when they pay so they do not pay anything up until they really get the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their bank account and they can genuinely rely on Wonder trust that the process has actually been completed 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 require you need professionals on the other end of the phone to process this and get it to where you get one of these that’s what matters all right Mr Fantastic 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 ever become aware of I definitely had not become aware of it up until extremely just recently and discovered a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 simply contact your bank supervisor and state give 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with 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 practically everybody it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund okay go on sorry I simply need to ensure we got that point I mean that’s a big distinction a loan versus cash 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 real money 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 staff member 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 investors it’s for employees right you had to have actually owned a company but it’s based upon you having W-2 staff members 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 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 appropriate so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of seven thousand per quarter how did that occur um they simply changed the rules in.
2021 versus since the turmoil of the pandemic so they wished to even get more to keep those workers 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 occurs 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 since that’s a lot of money it is now there’s a caveat here the PPP cash would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say 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 internal revenue service so it’s big obviously now the big question is why does nobody understand about this due to the fact that appearance when I initially became aware of this when I initially satisfied Josh you understand I have actually got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make lots of lots of financial investments in business owners of which lots of suffered through the pandemic when I initially found out about this I called BS I do not think it due to the fact that I utilize the PPP we went through the money 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 should have and we used them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even called to my politician good friends Guv Senators they didn’t understand about it I indicate that’s how you know that’s how misinformation is that there’s no info out there then a lot of individuals informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one understand about the staff member retention credit you know what’s fascinating you’re speaking about the banks Kevin because in the PPP loan procedure the federal government made it really 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was chaos since remember in the original cares act you could refrain from doing both programs so if you had done PPP you might not do ERC in the initial program and when they altered the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO know how to do this not truly he or she’s never ever done it in the past do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never ever done this before unless you have an account that went into this company and bottom line my firm Kevin has been in business since 2009 and we have actually 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 big huge business customers have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate 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 staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose business is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Availability.
1. The credit is available to all companies despite size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is fully 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 equivalent quarter in 2019. Once the.
employer’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries varies by whether a company had, typically, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing assistance typically offer know-how and assistance to assist companies browse the intricate process of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? File Amended 941 For Employee Retention Credit
Eligibility Assessment: These companies will assess your company’s eligibility for the ERC based on factors such as your market, profits, and operations. They can assist figure out if you meet the requirements for the credit and recognize the optimum credit amount you can declare.
Paperwork and Computation: ERC filing services will assist in collecting the essential documents, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit amount based on eligible incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to determine possible chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the required forms and documentation on your behalf. This includes completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have evolved with time. These business stay updated with the current changes and ensure that your filings adhere to the most existing standards. They can likewise offer continuous assistance if the internal revenue service demands extra info or carries out an audit related to your ERC claim.
It is essential to research study and vet any business offering ERC filing support to ensure their trustworthiness and know-how. Look for established firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax experts who provide ERC submitting support.
Keep in mind that while these business can offer valuable assistance, it’s always a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified choices and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate businesses to maintain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, companies must meet one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. As pointed out previously, for 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly 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 (up to 70%) of certified incomes paid to staff members, including specific health plan expenses. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they got a PPP loan. Nevertheless, the same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, allowing eligible companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for businesses to change prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work tax returns, normally Type 941. The excess can be reimbursed to the company if the credit goes beyond the amount of work taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have actually evolved with time. The very best course of action is to seek advice from a tax expert or go to the main IRS website for the most up-to-date and comprehensive info concerning the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, a company should fulfill among the following criteria:.
Business operations were totally or partly suspended due to a federal 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 significant decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and businesses that got a PPP loan might have restrictions on declaring the credit.
The process for declaring the ERC includes finishing the needed forms and consisting of the credit on your employment tax return (typically Form 941). The exact time it takes to process the credit can differ based on a number of factors, consisting of the intricacy of your business and the workload of the IRS. It’s advised to seek advice from a tax professional for assistance specific to your scenario.
There are a number of companies that can aid with the procedure of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some popular business that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these companies straight to ask about their charges and services.
Please note that the details supplied here is based upon general understanding and might not reflect the most recent updates or modifications to the ERC. It is essential to talk to a tax professional or visit the main IRS site for the most accurate and current details concerning eligibility, declaring procedures, and readily available help.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on earnings paid to all staff members whether they actually worked or not. To put it simply, even if the.
employees worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees usually in 2019, then the credit is.
permitted only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just money payments but also a part of the cost of company.
supplied healthcare. File Amended 941 For Employee Retention Credit
Payment.
Employers can be instantly compensated for the credit by decreasing the amount of payroll taxes they.