Lets talk first about Innovation Refunds Irs Audit :
Our group here what do these people doing everyone in this room is helping teach people about ERC and uh always supply a lovely breakfast and have individuals actually learn more about the program we ought to head to the room 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 numerous millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I imply you understand if you simply start 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 indicate think of how many real customers that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you understand when you
receive this you understand the check is gone for sure which’s when they pay so they do not pay anything until they in fact receive the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their bank account and they can genuinely rely on Wonder trust that the process has actually been finished and how many you believe you’ve processed given that you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something really crucial today the worker retention credit which the majority of you have never heard of I definitely had not become aware of it up until very recently and learned a lot about it due to the fact that this is probably the lowest cost of capital for any small business anywhere
anytime if you have employees in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply contact your bank supervisor and state provide 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 representative for this I enjoy this program it’s going away very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used organizations 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 big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money cash payroll tax refund all right go on sorry I just need to make sure we got that point I mean that’s a big distinction a loan versus money cash I like cash money 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 initial cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get real cash from the IRS all right so let’s speak about how it works because it seems like to me if it’s a if it’s worker retention credit that person needed to be an employee so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have owned a service however 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six months of 2021 on the W-2 right so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my favorite part cash just how much can you get back per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the staff member’s wage 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 staff member’s salary to a maximum of 7 thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wished 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 approximately 5 thousand Max and then 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 five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a lot of money it is now there’s a caveat here the PPP cash would need to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant 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 IRS so it’s big obviously now the big question is why does nobody learn about this since look when I initially found out about this when I initially fulfilled Josh you know I have actually got great deals of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make many many financial investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t believe it since I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them sensibly to survive throughout the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even called to my political leader good friends Governor Senators they didn’t know about it I suggest 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 because you took the PPP likewise not real so let’s ask Josh why does nobody know about the employee retention credit you know what’s fascinating you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it very 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 simply procedure process that’s all um and here there was turmoil due to the fact that remember in the initial cares act you might refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they altered 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 government never ever made it clear to anyone about how to.
do this does your CFO know how to do this not really he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll companies 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 entered into this organization and bottom line my company Kevin has actually been in business given that 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our big big business clients have dealt 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 property property 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 workers on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose company is totally or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all companies regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a comparable 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 qualifying wages paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying salaries varies by whether a company had, typically, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing assistance typically supply know-how and support to help organizations navigate the complicated procedure of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? Innovation Refunds Irs Audit
Eligibility Assessment: These companies will evaluate your business’s eligibility for the ERC based on elements such as your market, earnings, and operations. If you meet the requirements for the credit and identify the optimum credit amount you can claim, they can assist identify.
Paperwork and Estimation: ERC filing services will assist in collecting the required documentation, such as payroll records and financial statements, to support your claim. They will also assist compute the credit quantity based upon eligible earnings and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can review your past payroll records and financials to identify possible chances for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required types and documentation on your behalf. This consists of completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually developed in time. These companies stay updated with the most recent changes and ensure that your filings adhere to the most existing standards. They can also offer continuous support if the internal revenue service demands additional information or conducts an audit related to your ERC claim.
It is essential to research study and veterinarian any company offering ERC filing help to guarantee their trustworthiness and proficiency. Try to find recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who offer ERC filing support.
Bear in mind that while these business can offer important help, it’s always an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate companies to retain and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, employers should satisfy 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 decrease in gross invoices. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the 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 immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a portion (up to 70%) of qualified salaries paid to employees, including certain health plan expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they received a PPP loan. Nevertheless, the exact same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, enabling qualified employers to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to amend prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Type 941. If the credit goes beyond the quantity of work taxes owed, the excess can be reimbursed to the company.
It is very important to keep in mind that the ERC provisions and eligibility criteria have actually developed over time. The very best course of action is to consult with a tax professional or visit the main IRS site for the most current and detailed details concerning the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company needs to satisfy one of the following requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified 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 right away preceding quarter.
The ERC is available to services of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and businesses that got a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the essential kinds and consisting of the credit on your employment tax return (usually Form 941). The exact time it requires to process the credit can differ based on numerous factors, consisting of the complexity of your company and the workload of the IRS. It’s suggested to consult with a tax professional for assistance particular to your scenario.
There are a number of companies that can assist with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some well-known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and get in touch with these companies directly to ask about their charges and services.
Please keep in mind that the info offered here is based upon basic knowledge and may not show the most current updates or modifications to the ERC. It is very important to speak with a tax professional or go to the official internal revenue service website for the most up-to-date and precise info concerning eligibility, claiming treatments, and available support.
Less than 100. If the company had 100 or less staff members usually in 2019, then the credit is based.
on earnings paid to all employees whether they actually worked or not. To put it simply, even if the.
employees worked full time and earned 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.
allowed just for earnings paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not just cash payments but likewise a part of the cost of company.
offered health care. Innovation Refunds Irs Audit
Companies can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.