Lets talk first about Innovation Refunds Owner :
Our group here what do these people doing everybody in this space is assisting teach people about ERC and uh always offer a stunning breakfast and have individuals actually learn about 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 wish to see that what is this this is uh numerous millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I suggest you know if you simply start to look at a few 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 simply I suggest think of how many real 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 IRS 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 gone for sure and that’s when they pay so they don’t pay anything till they in fact get the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they deposit it into their checking account and they can genuinely rely on Wonder trust that the procedure has been finished and how many you believe you have actually processed because you started this we’re about 35 000 of these for
about six 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 among these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something really important today the staff member retention credit which most of you have never heard of I definitely hadn’t become aware of it until really recently and found out a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have workers between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just phone your bank manager and say 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 have actually ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away very soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big distinction 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 fine go on sorry I simply have to make sure we got that point I indicate that’s a big difference a loan versus cash cash I like money cash that’s what we’re talking about all right 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 stunning difficult 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 sounds like to me if it’s a if it’s worker retention credit that individual had to be a worker 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 had to have actually owned an organization 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 qualified 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 6 quarters the program was open well walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s measured 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 computation in 2020 to be exact Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of 7 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 as much as five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member 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 2 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 say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial clearly now the huge concern is why does nobody understand about this because appearance when I first became aware of this when I initially satisfied Josh you understand I’ve got great deals of investments in great deals of business I’m a major supporter for entrepreneurship in America and make many many financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I do not think it because I use 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 and that were well been worthy of and we used them wisely to stay alive throughout the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician pals Governor 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 people informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one learn about the staff member retention credit you understand what’s fascinating you’re discussing the banks Kevin since in the PPP loan process the federal government made it extremely 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 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 turmoil due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing 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 government never made it clear to any person 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 do not do it the payroll business yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this prior to unless you have an account that went into this organization and bottom line my company Kevin has stayed in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge huge business clients have actually dealt with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
companies 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 receipts, company whose business is completely or partly suspended.
decrease by more than 50%.
1. The credit is readily available to all employers no matter size including tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent 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 completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The meaning of qualifying wages varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Business that concentrate on ERC filing help usually offer competence and assistance to help companies navigate the complex procedure of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Owner
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based upon elements such as your market, revenue, and operations. If you satisfy the requirements for the credit and recognize the maximum credit quantity you can declare, they can help identify.
Documents and Estimation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and financial declarations, to support your claim. They will likewise help determine the credit quantity based upon qualified incomes and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to determine possible chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the required types and documentation in your place. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have developed in time. These companies stay updated with the current modifications and ensure that your filings comply with the most present guidelines. They can also offer continuous support if the internal revenue service requests extra information or conducts an audit related to your ERC claim.
It is essential to research and vet any business using ERC filing help to guarantee their reliability and proficiency. Look for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax professionals who use ERC filing support.
Bear in mind that while these companies can supply valuable assistance, it’s always an excellent concept to have a basic understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to motivate organizations to keep and pay their workers during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit companies, tax-exempt organizations, and certain governmental entities. To certify, employers need to meet one of two criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As discussed previously, for 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline 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 (approximately 70%) of certified salaries paid to workers, including certain health plan expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. The same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, enabling eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision offers an opportunity for companies to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, typically Form 941. If the credit exceeds the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is necessary to keep in mind that the ERC arrangements and eligibility criteria have progressed gradually. The best course of action is to talk to a tax expert or check out the main internal revenue service website for the most up-to-date and detailed information concerning the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a business needs to meet among the following requirements:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and companies that got a PPP loan may have restrictions on claiming the credit.
The procedure for declaring the ERC includes completing the essential forms and consisting of the credit on your employment income tax return (generally Kind 941). The exact time it requires to process the credit can vary based upon numerous factors, including the intricacy of your business and the work of the IRS. It’s suggested to talk to a tax professional for assistance specific to your situation.
There are numerous business that can aid with the process of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some popular companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these companies straight to inquire about their charges and services.
Please keep in mind that the information offered here is based on general knowledge and may not show the most recent updates or modifications to the ERC. It is essential to consult with a tax expert or go to the main IRS website for the most current and precise information relating to eligibility, claiming treatments, and available help.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on wages paid to all employees whether they actually worked or not. Simply put, even if the.
employees worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 staff members typically in 2019, then the credit is.
allowed only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply money payments but likewise a portion of the cost of employer.
provided health care. Innovation Refunds Owner
Employers can be right away repaid for the credit by decreasing the amount of payroll taxes they.