Lets talk first about Outstanding Employee Retention Credit Phone Call :
Our group here what do these people doing everyone in this space is helping teach individuals about ERC and uh constantly provide a beautiful breakfast and have people actually find out about the program we must 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 literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I indicate you know if you just begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest think about the number of actual clients 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 validated 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 know when you
receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they deposit it into their checking account and they can really trust Wonder trust that the process has been completed and how many you believe you have actually processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’s what you require 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 Fantastic here you’re at my YouTube channel we’re discussing something really important today the employee retention credit which most of you have never become aware of I certainly hadn’t heard of it up until really recently and learned a lot about it since this is probably the most affordable cost of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply call your bank manager and state give me a loan it doesn’t 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 spokesperson for this I love this program it’s going away very soon you got to learn everything 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 created the cares Act and the cares act provided services 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 huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I just need to ensure we got that point I mean that’s a big difference a loan versus money 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 lovely difficult check in the mail where you get actual cash from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s worker retention credit that individual needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for workers right you had to have owned a service but it’s based upon you having W-2 employees in America not 10.99. As long as you had W-2 employees 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 proper so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus since the chaos of the pandemic so they wanted 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 up to five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a great deal of cash it is now there’s a caveat here the PPP cash would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New York 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 IRS so it’s huge obviously now the huge question is why does nobody learn about this since look when I initially heard about this when I initially satisfied Josh you know I have actually got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which numerous suffered through the pandemic when I first found out about this I called BS I don’t believe it since I utilize the PPP we went through the money 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 deserved and we utilized them wisely to survive throughout the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t know about it I imply that’s how you know that’s how false information is that there’s no information out there then a lot of people told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody know about the worker retention credit you know what’s fascinating you’re discussing the banks Kevin due to the fact that in the PPP loan process the federal government made it really 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 just procedure process that’s all um and here there was mayhem because remember in the initial cares act you might refrain from doing 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 anybody about how to.
do this does your CFO understand how to do this not actually he or she’s never done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accountant no your accountant’s never ever done this before unless you have an account that went into this business and bottom line my firm Kevin has 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 great deal of our huge big business clients have dealt with bottom line to recuperate 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 real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose company is completely or partially suspended.
decline by more than 50%.
1. The credit is available to all companies despite size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small Business Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s company is totally or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. When the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages differs by whether an employer had, typically, more or less than.
100 workers in 2019.
Business that specialize in ERC filing assistance generally supply expertise and support to assist services navigate the complicated procedure of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Outstanding Employee Retention Credit Phone Call
Eligibility Evaluation: These business will assess your service’s eligibility for the ERC based upon aspects such as your industry, earnings, and operations. If you meet the requirements for the credit and determine the optimum credit quantity you can declare, they can assist identify.
Documentation and Calculation: ERC filing services will assist in gathering the essential documentation, such as payroll records and financial statements, to support your claim. They will likewise help calculate the credit quantity based upon eligible wages and other certifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these business can examine your past payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you change previous tax returns to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the needed types and paperwork in your place. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved in time. These business stay updated with the current changes and guarantee that your filings comply with the most current guidelines. If the IRS requests additional details or carries out an audit associated to your ERC claim, they can also supply ongoing assistance.
It is necessary to research study and veterinarian any business providing ERC filing help to ensure their reliability and know-how. Look for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax specialists who provide ERC filing support.
Keep in mind that while these companies can provide important help, it’s constantly a good concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure 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 steps. The objective of the ERC is to encourage services to retain and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To certify, companies need to meet one of two criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As discussed previously, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices 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 quantity amounts to a portion (as much as 70%) of qualified wages paid to workers, consisting of specific health insurance expenditures. 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, services that got a Paycheck Defense 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. The exact same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, allowing qualified companies to claim the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for businesses to amend prior-year tax returns and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be reimbursed to the company if the credit surpasses the quantity of employment taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have progressed gradually. The very best strategy is to speak with a tax expert or check out the official internal revenue service website for the most in-depth and updated information relating to the ERC, consisting of any current legislative changes or updates.
To get approved for the ERC, an organization needs to satisfy among the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a significant decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and businesses that received a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC involves finishing the essential types and consisting of the credit on your work tax return (usually Form 941). The exact time it takes to process the credit can differ based on several elements, including the intricacy of your organization and the workload of the internal revenue service. It’s advised to seek advice from a tax expert for assistance specific to your scenario.
There are numerous companies that can assist with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some well-known companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these companies directly to inquire about their services and charges.
Please keep in mind that the info supplied here is based upon basic knowledge and may not show the most current updates or changes to the ERC. It is essential to consult with a tax professional or check out the official IRS website for the most precise and current information regarding eligibility, declaring treatments, and offered support.
Less than 100. If the employer had 100 or less employees usually 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 staff members usually in 2019, then the credit is.
allowed only for earnings paid to workers who did not work during the calendar quarter.
In both cases, “earnings” includes not simply money payments but likewise a part of the expense of employer.
provided healthcare. Outstanding Employee Retention Credit Phone Call
Employers can be immediately repaid for the credit by minimizing the quantity of payroll taxes they.