Lets talk first about Irs Ppp Loan And Employee Retention Credit :
Our group here what do these men doing everybody in this room is assisting teach individuals about ERC and uh constantly supply a beautiful breakfast and have individuals actually learn more about the program we ought to head to the space where we are able to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I indicate you understand if you just begin to take a 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 suggest it’s just I mean consider the number of 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 internal revenue service heading to the customer so that’s how you’re able to track it you know when you
get this you know the check is gone for sure and that’s when they pay so they do not pay anything up until they in fact get the money they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their bank account and they can genuinely rely on Wonder trust that the procedure has actually been ended up and how many you believe you’ve processed because you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’s what you need 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 Wonderful here you’re at my YouTube channel we’re speaking about something really essential today the employee retention credit which most of you have never heard of I certainly had not become aware of it till very just recently and learned a lot about it due to the fact that this is probably the most affordable cost of capital for any small company anywhere
anytime if you have workers between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder 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 contact your bank supervisor and say offer 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 like this program it’s disappearing soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there two 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 fine go on sorry I just need to ensure we got that point I mean that’s a huge difference a loan versus cash cash I like cash money 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 original cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get real cash from the internal revenue service all right so let’s speak about 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 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 employees right you had to have actually owned a company but it’s based upon you having W-2 employees 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 appropriate so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my preferred part money just how much can you get back per worker 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 5 thousand dollars per staff member 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 occur um they simply changed the rules in.
2021 versus because the turmoil of the pandemic so they wished 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 up to 5 thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a great deal of money it is now there’s a caveat 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 two you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge undoubtedly now the huge concern is why does nobody learn about this due to the fact that appearance when I initially heard about this when I initially fulfilled Josh you understand I’ve got great deals of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I first found out about this I called BS I do not think it due to the fact that I utilize 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 been worthy of and we utilized them sensibly to stay alive 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 politician buddies Governor Senators they didn’t know about it I mean that’s how you understand that’s how misinformation 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 real so let’s ask Josh why does no one understand about the employee retention credit you understand what’s interesting 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 nation and they would process process 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 chaos since remember in the original cares act you might not do both programs so if you had done PPP you could not do ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC since 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 understand how to do this not really he or she’s never done it in the past do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll business your accountant no your accountant’s never ever done this before unless you have an account that went into this service and bottom line my firm Kevin has actually stayed in business given that 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big big business clients have dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work chance 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 as much as $10,000 in earnings paid by an.
company whose company is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all companies regardless of size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. Once the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries varies by whether an employer had, typically, more or less than.
100 employees in 2019.
Companies that focus on ERC filing help generally offer expertise and support to help companies browse the complicated process of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Irs Ppp Loan And Employee Retention Credit
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon factors such as your market, profits, and operations. If you fulfill the requirements for the credit and identify the optimum credit quantity you can declare, they can help determine.
Documents and Computation: ERC filing services will assist in gathering the needed documentation, such as payroll records and monetary statements, to support your claim. They will likewise help compute the credit amount based on eligible wages and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize possible chances for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the needed kinds and paperwork on your behalf. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually developed gradually. These companies stay updated with the most recent modifications and make sure that your filings comply with the most current standards. If the Internal revenue service demands extra information or performs an audit related to your ERC claim, they can also offer continuous assistance.
It is very important to research study and vet any business providing ERC filing help to guarantee their credibility and knowledge. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax specialists who use ERC filing assistance.
Remember that while these companies can supply important help, it’s constantly a good idea to have a fundamental 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 procedures. The objective of the ERC is to motivate businesses to maintain and pay their workers during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, employers need to satisfy one of two requirements:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As discussed previously, for 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified 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 right away preceding quarter.
Credit Amount: 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 certified salaries paid to employees, consisting of specific health insurance costs. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they received a PPP loan. However, the same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting eligible companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement offers a chance for organizations to change prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, usually Form 941. If the credit exceeds the quantity of employment taxes owed, the excess can be refunded to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have evolved with time. The best strategy is to talk to a tax expert or visit the official IRS website for the most detailed and updated information concerning the ERC, including any current legal modifications or updates.
To get approved for the ERC, a service must fulfill one of the following criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, government entities and businesses that received a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes completing the needed types and consisting of the credit on your work tax return (typically Type 941). The exact time it requires to process the credit can vary based on numerous aspects, including the intricacy of your company and the workload of the IRS. It’s recommended to seek advice from a tax expert for guidance specific to your situation.
There are several business that can help with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some widely known business that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these companies directly to ask about their services and fees.
Please keep in mind that the information provided here is based upon general knowledge and might not show the most current updates or changes to the ERC. It is essential to speak with a tax expert or go to the main IRS website for the most accurate and updated info regarding eligibility, claiming treatments, and available help.
Less than 100. If the company had 100 or less workers on average in 2019, then the credit is based.
on salaries paid to all employees whether they actually worked or not. Simply put, even if the.
workers 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 employees on average in 2019, then the credit is.
allowed just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just money payments but also a portion of the cost of employer.
supplied healthcare. Irs Ppp Loan And Employee Retention Credit
Companies can be immediately repaid for the credit by minimizing the quantity of payroll taxes they.