Lets talk first about Has The Employee Retention Credit Ended :
Our group here what do these men doing everyone in this room is helping teach individuals about ERC and uh constantly provide a stunning breakfast and have people actually find out about the program we ought to head to the space where we are able to display some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I suggest you understand if you just start to 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 indicate it’s just I suggest think about the number of actual customers 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 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’re able to track it you know when you
get this you understand the check is chosen sure and that’s when they pay so they don’t pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their savings account and they can truly rely on Wonder trust that the process has actually been finished and the number of you believe you have actually processed considering that you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you need you require experts 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 Terrific here you’re at my YouTube channel we’re discussing something really crucial today the worker retention credit which most of you have never heard of I certainly hadn’t become aware of it until extremely just recently and discovered a lot about it due to the fact that this is most likely the lowest cost of capital for any small company anywhere
anytime if you have staff members 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 Ideas 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 just phone your bank manager 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 ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away very soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used businesses 3 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 difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund fine go on sorry I simply have to make certain we got that point I imply that’s a big distinction a loan versus money cash I like money cash that’s what we’re speaking about alright 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 beautiful tough check in the mail where you get actual cash from the IRS all right so let’s talk about how it works because it seems 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 individuals on the cap table not for shareholders it’s for employees right you had to have actually owned a service but it’s based upon you having W-2 staff members 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 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and four 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 money just how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the chaos of the pandemic so they wished 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 approximately five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of money it is now there’s a caveat here the PPP cash would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around 10 thousand dollars an individual 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 cash you would still get a million dollar in the mail from the IRS so it’s huge obviously now the huge concern is why does no one learn about this due to the fact that appearance when I initially became aware of this when I first fulfilled Josh you know I have actually got lots of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I do not think it because 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 which were well deserved and we used them wisely to stay alive during the pandemic so when I became aware of this I said nah it can’t hold true however when I dug around I even contacted us to my politician good friends Guv 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 individuals told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody understand about the employee retention credit you know what’s interesting you’re discussing the banks Kevin because in the PPP loan procedure the federal government made it really 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was turmoil because keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not actually she or he’s never done it previously 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 accountant no your accountant’s never done this before unless you have an account that went into this organization and bottom line my company Kevin has actually been 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 great deal of our huge huge business clients have actually worked with bottom line to recuperate other government programs we have actually 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 employee retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, employer whose company is completely or partially suspended.
decline by more than 50%.
1. The credit is offered to all employers despite size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is completely or partially suspended by federal 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 go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of qualifying earnings varies by whether a company had, on average, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing support normally provide competence and support to assist businesses browse the intricate procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Has The Employee Retention Credit Ended
Eligibility Assessment: These companies will evaluate your organization’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. If you meet the requirements for the credit and recognize the maximum credit quantity you can claim, they can assist identify.
Documentation and Computation: ERC filing services will assist in gathering the required documentation, such as payroll records and financial declarations, to support your claim. They will likewise assist compute the credit amount based on qualified wages and other qualifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can review your past payroll records and financials to determine potential chances for retroactive credits. They can help you amend prior income tax return to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and submit the needed forms and paperwork on your behalf. This consists of finishing Form 941 or any other required tax return.
Compliance and Updates: ERC regulations and guidance have progressed in time. These business stay upgraded with the most recent modifications and guarantee that your filings adhere to the most existing standards. If the IRS demands additional info or carries out an audit related to your ERC claim, they can likewise offer continuous assistance.
It is very important to research and vet any business providing ERC filing support to ensure their trustworthiness and knowledge. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax experts who offer ERC submitting assistance.
Remember that while these business can offer valuable support, it’s constantly a great concept to have a standard understanding of the ERC requirements and process yourself. This will help you make informed decisions and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage businesses to maintain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers should fulfill one of two criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As mentioned previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (as much as 70%) of certified salaries paid to workers, consisting of certain health plan expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. The exact same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, enabling qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for organizations to change prior-year income tax return and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, generally Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the company.
It is very important to keep in mind that the ERC provisions and eligibility requirements have developed in time. The very best strategy is to seek advice from a tax expert or check out the official internal revenue service site for the most updated and detailed information regarding the ERC, consisting of any recent legislative modifications or updates.
To receive the ERC, a service needs to meet among the following requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a significant decline 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 defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, however there are some exceptions. For example, government entities and organizations that got a PPP loan might have limitations on claiming the credit.
The process for declaring the ERC includes finishing the essential kinds and consisting of the credit on your employment income tax return (typically Form 941). The exact time it takes to process the credit can vary based on a number of factors, including the complexity of your organization and the work of the internal revenue service. It’s suggested to seek advice from a tax expert for assistance specific to your scenario.
There are several business that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some well-known companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these companies straight to ask about their services and fees.
Please note that the details offered here is based on general understanding and may not show the most current updates or changes to the ERC. It is very important to seek advice from a tax professional or check out the official internal revenue service website for the most current and accurate information relating to eligibility, claiming treatments, and offered support.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on salaries paid to all workers whether they actually worked or not. In other words, even if the.
staff members worked full-time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled just for incomes paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not simply money payments but likewise a portion of the expense of employer.
supplied healthcare. Has The Employee Retention Credit Ended
Companies can be right away reimbursed for the credit by lowering the amount of payroll taxes they.