FAQ: Indiana Employee Retention Credit 2023

Lets talk first about Indiana Employee Retention Credit :

Our team here what do these men doing everyone in this room is helping teach people about ERC and uh constantly offer a beautiful breakfast and have individuals truly discover the program we should head to the space where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I suggest you understand if you just begin to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just 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 validated 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 opted for sure and that’s when they pay so they do not pay anything up until they really get the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their checking account and they can really rely on Wonder trust that the procedure has been completed and how many you believe you have actually processed considering that you began this we’re about 35 000 of these for

 


about six billion dollars wow so plainly they know 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 among these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re discussing something actually crucial today the worker retention credit which most of you have actually never heard of I definitely had not heard of it until extremely just 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 workers in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest 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 state offer me a loan it does not 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 become 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 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 practically everyone it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.

fix the money money payroll tax refund all right go on sorry I just need to make sure we got that point I suggest that’s a huge difference a loan versus money money I like cash money that’s what we’re talking 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 gorgeous tough check in the mail where you get real money from the internal revenue service all right so let’s talk about how it works due to the fact that it seems like to me if it’s a if it’s worker retention credit that person 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 staff members right you needed to have owned a company however it’s based on 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 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 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you return per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the employee’s salary to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that happen um they just altered the rules in.

2021 versus because the turmoil 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 as much as five thousand Max and then what takes place 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 six thousand dollars per employee that is since that’s a great deal of cash it is now there’s a caution 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 two you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city 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 certainly now the huge question is why does no one know about this because appearance when I first became aware of this when I initially met Josh you understand I have actually got lots of financial investments in lots of companies I’m a major supporter for entrepreneurship in America and make lots of many investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not think it because I utilize 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 which were well should have and we used them sensibly to stay alive throughout the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even called to my politician buddies Governor Senators they didn’t know about it I indicate that’s how you understand 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 nobody understand about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin since in the PPP loan process 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 huge 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 procedure that’s all um and here there was chaos because remember in the initial cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the original program and when they altered 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 made it clear to any person about how to.

do this does your CFO know how to do this not truly she or he’s never ever done it previously 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 done this before unless you have an account that went into this company and bottom line my firm Kevin has actually been in business because 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate customers have dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.

The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Because of COVID-19 or whose gross invoices, company whose company is completely or partly suspended.
decrease by more than 50%.
Accessibility.
1. The credit is available to all employers no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. When the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.

Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries differs by whether a company had, usually, more or less than.
100 employees in 2019.

Business that focus on ERC filing help normally offer proficiency and support to help companies navigate the complex process of claiming the credit. They can provide various services, consisting of:.

 

How is the employee retention credit calculated? Indiana Employee Retention Credit

Eligibility Evaluation: These companies will assess your service’s eligibility for the ERC based on aspects such as your market, revenue, and operations. They can assist figure out if you satisfy the requirements for the credit and recognize the maximum credit quantity you can claim.
Paperwork and Calculation: ERC filing services will assist in gathering the needed documentation, such as payroll records and financial statements, to support your claim. They will likewise assist calculate the credit amount based upon eligible wages and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can review your past payroll records and financials to recognize possible chances for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and send the necessary kinds and paperwork in your place. This consists of completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have actually evolved in time. These business remain upgraded with the latest modifications and ensure that your filings abide by the most existing standards. If the IRS demands extra details or performs an audit related to your ERC claim, they can also supply ongoing support.
It is very important to research study and vet any business providing ERC filing assistance to guarantee their reliability and knowledge. Try to find established companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax experts who provide ERC submitting support.

Remember that while these business can provide important assistance, it’s always a good idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure 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 measures. The goal of the ERC is to encourage businesses to retain and pay their workers throughout the pandemic, even if their operations have been affected.

Here are some key points about the ERC:.

Eligibility: The ERC is readily available to qualified employers, including for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers must fulfill one of two requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As pointed out earlier, for 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease 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 amount amounts to a percentage (approximately 70%) of certified incomes paid to workers, including certain health plan costs. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. The very same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting eligible employers to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, usually Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be reimbursed to the company.
It is necessary to note that the ERC arrangements and eligibility requirements have evolved in time. The best course of action is to consult with a tax expert or go to the official internal revenue service site for the most updated and in-depth information regarding the ERC, including any current legal changes or updates.

To qualify for the ERC, a business must fulfill one of the following requirements:.

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. For 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and organizations that received a PPP loan might have restrictions on claiming the credit.

The process for declaring the ERC involves completing the essential kinds and including the credit on your work income tax return (generally Type 941). The exact time it takes to process the credit can differ based on a number of factors, including the complexity of your company and the work of the internal revenue service. It’s suggested to speak with a tax expert for assistance specific to your situation.

There are several companies that can help with the process of claiming the ERC. Some well-known business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.

Please note that the info supplied here is based upon basic understanding and may not reflect the most current updates or changes to the ERC. It is essential to speak with a tax professional or go to the official internal revenue service website for the most precise and up-to-date information concerning eligibility, claiming treatments, and available help.

Less than 100. If the employer had 100 or less staff members usually in 2019, then the credit is based.
on salaries paid to all employees whether they in fact worked or not. To put it simply, even if the.
workers worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers typically in 2019, then the credit is.
allowed just for incomes paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just cash payments however also a part of the cost of company.
offered health care. Indiana Employee Retention Credit
Payment.

Companies can be immediately reimbursed for the credit by lowering the quantity of payroll taxes they.