Lets talk first about Innovation Refunds Trustpilot :
Our group here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh always supply a gorgeous breakfast and have individuals really discover the program we ought to head to the room 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 hundreds of countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I imply you know if you just start to 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 imply it’s just I mean consider the number of 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 confirmed 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 know when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything up until they actually get the cash they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their bank account and they can really rely on Wonder trust that the process has been ended up and the number of you believe you’ve processed because you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you require 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 Terrific here you’re at my YouTube channel we’re talking about something really important today the staff member retention credit which most of you have actually never ever become aware of I definitely hadn’t become aware of it until extremely just recently and found out a lot about it since this is most likely the lowest cost of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I’ve 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 not easy 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 have actually ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund okay go on sorry I just need to make sure we got that point I suggest that’s a huge difference a loan versus money cash I like cash cash that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get actual money from the IRS all right so let’s speak about how it works because it sounds like to me if it’s a if it’s worker retention credit that person needed to be a staff member so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for workers right you had to have actually owned a business but it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. all right 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 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 exact 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 skyrocketed to 70 of the worker’s wage to an optimum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus due to the fact that the chaos 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 occurs 21 000 Max in 2021 oh that’s how you develop twenty six 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 caveat here the PPP money would have 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 usually 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 staff members and you took PPP money you would still get a million dollar in the mail from the IRS so it’s big certainly now the big question is why does nobody know about this since look when I first became aware of this when I first met Josh you understand I’ve got great deals of financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many lots of investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t think it since I use the PPP we went through the cash 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 should have and we used them wisely to survive throughout the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even contacted us to my political leader pals Guv Senators they didn’t learn about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of people told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one know about the worker retention credit you understand what’s intriguing you’re discussing the banks Kevin because 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 big banks in our nation 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 mayhem due to the fact that remember in the initial cares act you might refrain from doing 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 refraining from doing ERC since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO know how to do this not actually he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never done this before unless you have an account that went into this company and bottom line my firm Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have actually worked with bottom line to recuperate 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 federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose company is completely or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is readily 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.
organizations who take Small company Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts exceed 80% of a similar 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 earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying earnings varies by whether a company had, typically, basically than.
100 workers in 2019.
Business that focus on ERC filing help generally offer proficiency and support to help businesses navigate the complicated procedure of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? Innovation Refunds Trustpilot
Eligibility Evaluation: These business will evaluate your service’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can declare, they can help identify.
Paperwork and Estimation: ERC filing services will help in gathering the needed documentation, such as payroll records and financial declarations, to support your claim. They will also help calculate the credit amount based on qualified incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to determine possible opportunities for retroactive credits. They can help you amend prior tax returns to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the required kinds and documentation in your place. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have actually progressed with time. These companies remain upgraded with the current changes and guarantee that your filings adhere to the most existing guidelines. If the IRS requests additional info or performs an audit associated to your ERC claim, they can likewise offer continuous support.
It is very important to research and veterinarian any business using ERC filing help to guarantee their trustworthiness and proficiency. Try to find recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax specialists who offer ERC filing support.
Bear in mind that while these business can provide valuable help, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified decisions 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 procedures. The objective of the ERC is to motivate services to retain and pay their employees during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, employers must meet one of two criteria:.
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. As mentioned previously, for 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the exact 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% decline 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 quantity amounts to a percentage (as much as 70%) of qualified earnings paid to workers, including particular 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: At first, organizations that got an Income Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they got 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 actually been retroactively broadened and boosted, allowing eligible employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to amend prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, normally Form 941. If the credit surpasses the quantity of work taxes owed, the excess can be refunded to the company.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have progressed in time. The very best course of action is to talk to a tax expert or check out the main IRS site for the most comprehensive and current details relating to the ERC, including any recent legislative changes or updates.
To receive the ERC, a business needs to meet one of the following criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Government entities and services that received a PPP loan may have limitations on claiming the credit.
The process for declaring the ERC includes finishing the required kinds and consisting of the credit on your employment income tax return (normally Type 941). The exact time it takes to process the credit can vary based upon a number of factors, including the intricacy of your company and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for guidance specific to your situation.
There are several companies that can assist with the process of declaring the ERC. Some widely known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information provided here is based on general understanding and might not reflect the most current updates or modifications to the ERC. It is necessary to consult with a tax professional or visit the main internal revenue service website for the most accurate and current information concerning eligibility, claiming procedures, and offered assistance.
Less than 100. If the company had 100 or less workers typically in 2019, then the credit is based.
on salaries paid to all workers whether they really worked or not. To put it simply, even if the.
employees worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 staff members typically in 2019, then the credit is.
enabled just for salaries paid to staff members who did not work during the calendar quarter.
In both cases, “wages” consists of not just cash payments but also a part of the expense of company.
offered healthcare. Innovation Refunds Trustpilot
Companies can be right away repaid for the credit by decreasing the quantity of payroll taxes they.