Lets talk first about Innovation Refunds Address :
Our team here what do these people doing everybody in this space is assisting teach people about ERC and uh always supply a beautiful breakfast and have individuals really discover the program we should head to the space where we have the ability to show a few of the checks that we are getting for business and I want to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I mean you understand if you just begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest think of 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 verified 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 understand when you
get this you know the check is chosen sure which’s when they pay so they do not pay anything till they actually get the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they transfer it into their checking account and they can really trust Wonder trust that the process has been completed and how many you believe you’ve processed since you began this we have to do with 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 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 Wonderful here you’re at my YouTube channel we’re talking about something really crucial today the employee retention credit which most of you have actually never heard of I definitely hadn’t become aware of it till very recently and found out a lot about it due to the fact that this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers between 5 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just call your bank manager and say give 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies 3 opportunities 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 2 of them are loans and one’s a refund exactly 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 cash money I like cash cash that’s what we’re discussing 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 cash from the IRS all right so let’s discuss how it works since it seems like to me if it’s a if it’s staff member retention credit that individual needed 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 workers right you had to have owned a business but it’s based on 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 first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my preferred part money how much can you return per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to a maximum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus because the chaos of the pandemic so they wanted 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 approximately 5 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 6 thousand dollars per employee that is since that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically 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 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 IRS so it’s huge clearly now the huge concern is why does no one learn about this since look when I initially became aware of this when I initially met Josh you know I have actually got great deals of investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of investments in business owners of which numerous 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 really easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them wisely to stay alive throughout the pandemic so when I heard about this I said nah it can’t be true however when I dug around I even called to my political leader pals Governor Senators they didn’t know about it I imply that’s how you know that’s how false information is that there’s no information out there then a bunch of individuals told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had done PPP you might not do ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not actually she or he’s never done it in the past do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accountant’s never ever done this prior to unless you have an account that entered into this company and bottom line my company Kevin has actually stayed in business since 2009 and we’ve been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge big corporate customers have actually worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, employer whose business is completely or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all companies no matter size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries differs by whether an employer had, usually, more or less than.
100 employees in 2019.
Business that specialize in ERC filing help normally offer proficiency and assistance to help businesses navigate the complicated procedure of claiming the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Address
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon elements such as your industry, earnings, and operations. They can assist identify if you meet the requirements for the credit and identify the maximum credit amount you can claim.
Documentation and Computation: ERC filing services will assist in collecting the required paperwork, such as payroll records and financial declarations, to support your claim. They will also help compute the credit quantity based on eligible salaries and other qualifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize prospective chances for retroactive credits. They can assist you change prior income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the essential forms and documents on your behalf. This includes completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have progressed with time. These companies stay updated with the most recent modifications and guarantee that your filings adhere to the most current standards. They can also provide ongoing assistance if the IRS demands additional information or performs an audit related to your ERC claim.
It’s important to research and vet any company providing ERC filing assistance to ensure their reliability and knowledge. Search for established firms with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax specialists who offer ERC submitting assistance.
Bear in mind that while these business can offer valuable help, it’s always a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and guarantee precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate businesses to keep and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, employers must meet one of two criteria:.
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. As pointed out earlier, for 2021, a considerable decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the exact 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 amount is equal to a percentage (as much as 70%) of certified salaries paid to employees, consisting of particular health plan costs. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they got a PPP loan. However, the same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, permitting qualified employers to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision offers an opportunity for businesses to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, normally Form 941. The excess can be reimbursed to the company if the credit goes beyond the amount of work taxes owed.
It is essential to note that the ERC arrangements and eligibility criteria have actually progressed gradually. The best strategy is to consult with a tax expert or go to the main IRS site for the most current and comprehensive information regarding the ERC, including any recent legislative modifications or updates.
To qualify for the ERC, an organization needs to meet among the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt organizations, however there are some exceptions. Federal government entities and companies that got a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC includes completing the needed forms and including the credit on your work income tax return (usually Form 941). The exact time it takes to process the credit can vary based on numerous factors, including the intricacy of your business and the workload of the internal revenue service. It’s recommended to seek advice from a tax expert for guidance specific to your situation.
There are a number of business that can assist with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll company. Some well-known business that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and contact these companies straight to inquire about their services and costs.
Please keep in mind that the details offered here is based on general knowledge and might not reflect the most current updates or changes to the ERC. It’s important to talk to a tax professional or visit the main internal revenue service website for the most current and accurate details relating to eligibility, claiming treatments, and offered assistance.
Less than 100. If the company had 100 or less workers typically in 2019, then the credit is based.
on wages paid to all workers whether they really worked or not. In other words, even if the.
workers worked full-time and earned money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
permitted only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply money payments however likewise a part of the expense of company.
supplied health care. Innovation Refunds Address
Companies can be instantly repaid for the credit by minimizing the amount of payroll taxes they.