Lets talk first about Paycheck Protection Program Employee Retention Credit :
Our team here what do these men doing everyone in this room is assisting teach people about ERC and uh constantly provide a beautiful breakfast and have people truly find out about the program we need to head to the room where we have the ability to display some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I suggest you understand if you just begin to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I suggest consider how many actual customers 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’re able to track it you understand when you
get 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 receive the cash they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their checking account and they can really rely on Wonder trust that the process has been completed and how many you think you’ve processed since 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 among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re discussing something truly crucial today the worker retention credit which most of you have never ever heard of I definitely had not heard of it till really just recently and discovered a lot about it because this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have staff members between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call up your bank manager and say offer me a loan it does not 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’ve become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge distinction 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 all right go on sorry I simply have to ensure we got that point I indicate that’s a huge distinction a loan versus money money I like money money that’s what we’re speaking 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 lovely tough check in the mail where you get real cash from the internal revenue service all right so let’s speak 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 staff member so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have actually owned an organization but it’s based on 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 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part cash how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the mayhem 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 occurs 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member 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 lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around 10 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 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 no one understand about this due to the fact that look when I initially heard about this when I first met Josh you know I have actually got lots of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I first found out about this I called BS I don’t think it because I utilize 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 which were well been worthy of and we used them carefully to survive 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 contacted us to my political leader good friends Governor Senators they didn’t understand about it I indicate that’s how you understand that’s how misinformation is that there’s no details out there then a bunch of individuals told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody learn about the worker retention credit you know what’s fascinating you’re talking about the banks Kevin because in the PPP loan procedure 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 huge 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 procedure procedure that’s all um and here there was chaos since keep in mind 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 original program and when they altered the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly she or he’s never ever done it before 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 organization and bottom line my company Kevin has actually been in business since 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big big business customers have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose service is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all companies no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries differs by whether a company had, usually, basically than.
100 workers in 2019.
Companies that focus on ERC filing support normally supply proficiency and assistance to assist organizations navigate the complicated procedure of declaring the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Paycheck Protection Program Employee Retention Credit
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon elements such as your market, earnings, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can declare, they can help determine.
Documentation and Calculation: ERC filing services will assist in gathering the necessary paperwork, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit amount based upon eligible earnings and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your past payroll records and financials to identify possible opportunities for retroactive credits. They can help you change previous tax returns to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the necessary types and documents in your place. This includes finishing Type 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have actually progressed in time. These companies remain updated with the latest modifications and make sure that your filings abide by the most current standards. If the Internal revenue service requests additional info or performs an audit related to your ERC claim, they can likewise provide ongoing assistance.
It’s important to research study and vet any business using ERC filing help to guarantee their trustworthiness and proficiency. Try to find established companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax professionals who provide ERC filing assistance.
Bear in mind that while these business can provide valuable support, it’s always a good idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to motivate companies to retain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, including for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, companies should satisfy one of two requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As discussed previously, for 2021, a significant decline is defined 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 invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (up to 70%) of certified incomes paid to workers, including specific health plan expenditures. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. The exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, permitting qualified employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for organizations to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Type 941. If the credit exceeds the amount of work 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 gradually. The best strategy is to talk to a tax expert or go to the main internal revenue service website for the most detailed and updated information regarding the ERC, including any current legislative changes or updates.
To get approved for the ERC, a service should fulfill one of the following criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, government entities and services that received a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes finishing the required types and including the credit on your work income tax return (normally Kind 941). The exact time it requires to process the credit can vary based on several aspects, including the intricacy of your service and the work of the internal revenue service. It’s recommended to seek advice from a tax expert for guidance particular to your circumstance.
There are a number of companies that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some popular companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and get in touch with these business directly to inquire about their services and costs.
Please note that the details supplied here is based upon basic understanding and may not reflect the most recent updates or changes to the ERC. It is necessary to seek advice from a tax expert or visit the official IRS site for the most accurate and current details relating to eligibility, claiming procedures, and readily available help.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on earnings paid to all employees whether they really 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 employees on average in 2019, then the credit is.
permitted just for incomes paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” includes not just money payments however also a part of the expense of company.
provided healthcare. Paycheck Protection Program Employee Retention Credit
Companies can be instantly compensated for the credit by lowering the amount of payroll taxes they.