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Our team here what do these people doing everyone in this space is helping teach individuals about ERC and uh constantly supply a stunning breakfast and have people actually find out about the program we need to head to the room where we have the ability to show some of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I imply you understand if you simply begin 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 imply it’s simply I mean consider how many real customers that went through the program yeah this is the very end this is the party 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 which’s when they pay so they do not pay anything till they actually get the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the process has actually been ended up 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 plainly they understand what they’re doing which’s what you require you require 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 Terrific here you’re at my YouTube channel we’re talking about something really essential today the employee retention credit which most of you have actually never heard of I definitely hadn’t become aware of it until really just recently and found out a lot about it due to the fact that this is probably the most affordable expense of capital for any small company anywhere
anytime if you have workers between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 simply contact your bank manager and state provide me a loan it does not work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund all right go on sorry I simply need to ensure we got that point I suggest that’s a big difference a loan versus cash money 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 original cares Act is the ERC and yes Kevin it is a beautiful hard check in the mail where you get actual money from the IRS all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that person had to be a staff member so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for shareholders it’s for staff members right you had to have owned a company however it’s based upon you having W-2 workers 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 proper so there were six quarters the program was open well walk us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part cash how much can you return per worker that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to an optimum of 7 thousand per quarter how did that take place um they simply changed the rules in.
2021 versus due to the fact that 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 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a lot of money it is now there’s a caution here the PPP cash would have to be reduced 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 usually Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s state 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 internal revenue service so it’s huge undoubtedly now the huge question is why does nobody know about this since appearance when I initially found out about this when I initially fulfilled Josh you know I have actually got lots of investments in great deals of business I’m a major supporter for entrepreneurship in America and make numerous numerous financial investments in business owners of which numerous suffered through the pandemic when I initially became aware of this I called BS I do not think 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 and that were well been worthy of and we utilized them sensibly to stay alive throughout the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even called to my politician pals Governor Senators they didn’t learn about it I indicate that’s how you understand that’s how false information is that there’s no information out there then a lot of people informed me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan process the federal government made it extremely clear that if you desired 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 simply process procedure that’s all um and here there was turmoil since keep in mind in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed 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 made it clear to any person 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 business yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that went into this service and bottom line my company Kevin has stayed in business given that 2009 and we’ve been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our big huge business customers have dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Because of COVID-19 or whose gross receipts, employer whose organization is completely or partly suspended.
decrease by more than 50%.
Schedule.
1. The credit is available to all companies no matter size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are calculated 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 company’s gross receipts are listed below 50% of the similar quarter in 2019. As soon as the.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying salaries varies by whether an employer had, usually, more or less than.
100 workers in 2019.
Business that specialize in ERC filing assistance usually provide know-how and support to help services browse the intricate procedure of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds News
Eligibility Assessment: These companies will examine your company’s eligibility for the ERC based on elements such as your industry, profits, and operations. They can help identify if you meet the requirements for the credit and identify the optimum credit quantity you can claim.
Documentation and Estimation: ERC filing services will assist in collecting the required paperwork, such as payroll records and monetary statements, to support your claim. They will likewise help compute the credit amount based upon qualified salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can examine your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can help you change prior tax returns to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the essential kinds and documents in your place. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually progressed gradually. These business remain upgraded with the most recent changes and make sure that your filings abide by the most present guidelines. They can likewise provide continuous support if the IRS demands extra information or conducts an audit related to your ERC claim.
It’s important to research and vet any company using ERC filing support to ensure their reliability and competence. Search for established companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax professionals who provide ERC filing assistance.
Bear in mind that while these companies can supply valuable assistance, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage services to retain and pay their staff members during the pandemic, even if their operations have 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 certain governmental entities. To certify, companies should fulfill one of two requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As discussed previously, for 2021, a substantial decline 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 defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of certified salaries paid to employees, consisting of certain 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, services that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. However, the same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, allowing qualified companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for organizations to amend prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, typically Form 941. The excess can be reimbursed to the company if the credit goes beyond the amount of work taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have evolved over time. The very best strategy is to speak with a tax expert or visit the official internal revenue service site for the most in-depth and current information relating to the ERC, including any current legislative modifications or updates.
To qualify for the ERC, a service needs to satisfy one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable 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 right away preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. For example, government entities and services 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 work tax return (normally Form 941). The exact time it requires to process the credit can vary based upon several factors, including the intricacy of your service and the workload of the IRS. It’s suggested to talk to a tax expert for guidance particular to your scenario.
There are several companies that can assist with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some popular companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these companies straight to inquire about their services and fees.
Please note that the info supplied here is based on general understanding and might not show the most current 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 updated information regarding eligibility, claiming treatments, and available assistance.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on earnings paid to all staff members whether they really worked or not. To put it simply, even if the.
workers worked full time and earned money for full time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 employees typically in 2019, then the credit is.
permitted only for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments but also a portion of the cost of employer.
offered health care. Innovation Refunds News
Payment.
Companies can be immediately repaid for the credit by lowering the amount of payroll taxes they.