Lets talk first about Provider Relief Fund And Employee Retention Credit :
Our team here what do these people doing everyone in this room is assisting teach individuals about ERC and uh always offer a lovely breakfast and have people really discover 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 wish to see that what is this this is uh hundreds of millions of dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients verifying that the check is on the method I mean you understand if you just start to take a look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I indicate think of how many real clients that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are validated and the check is on the mail in the mail from the internal revenue service 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 gone for sure and that’s when they pay so they do not pay anything until they actually get the cash they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their checking account and they can really rely on Wonder trust that the procedure has actually been completed and how many you believe you have actually processed considering that 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 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 discussing something really crucial today the worker retention credit which the majority of you have actually never become aware of I definitely had not heard of it till really just recently and learned a lot about it since this is probably the lowest cost of capital for any small company anywhere
anytime if you have employees in between five and five hundred so I have actually got the professional 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 up your bank supervisor and say offer me a loan it doesn’t 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’ve ended up being yes the Ambassador and paid representative 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 provided services 3 opportunities 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund all right go on sorry I just have to ensure we got that point I mean that’s a huge 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 stunning tough check in the mail where you get real cash 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 staff member retention credit that individual needed to be a worker so I’m going to make the Presumption 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 owned a business however 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my preferred part cash just how much can you get back per worker that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum of 7 thousand per quarter how did that occur um they just altered 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 as much as five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you develop 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 because that’s a lot of money it is now there’s a caution here the PPP money would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say hypothetically you owned a restaurant 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 substantial clearly now the big question is why does no one know about this due to the fact that look when I initially found out about this when I first met Josh you understand I’ve got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make many numerous financial investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I don’t believe it due to the fact that I use 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 should have and we used them sensibly to survive during the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my politician buddies Governor Senators they didn’t know about it I suggest that’s how you understand that’s how misinformation is that there’s no info out there then a lot of individuals told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody understand about the staff member retention credit you understand what’s fascinating you’re discussing the banks Kevin due to the fact that 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 huge 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 mayhem 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 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 government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this business and bottom line my firm Kevin has stayed in business since 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have actually worked with bottom line to recover 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 real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
employer whose service is totally or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Schedule.
1. The credit is offered to all companies no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the company needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is completely or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross invoices exceed 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 qualifying wages paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings varies by whether an employer had, usually, more or less than.
100 workers in 2019.
Companies that focus on ERC filing support normally supply know-how and support to assist businesses browse the complicated procedure of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Provider Relief Fund And Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based on factors such as your industry, income, and operations. If you meet the requirements for the credit and recognize the maximum credit quantity you can claim, they can help identify.
Documents and Estimation: ERC filing services will help in collecting the required documents, such as payroll records and financial statements, to support your claim. They will likewise help compute the credit amount based on eligible incomes and other certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can evaluate your past payroll records and financials to identify possible opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the essential forms and documentation in your place. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have evolved with time. These business remain upgraded with the latest modifications and ensure that your filings adhere to the most present standards. If the IRS requests additional information or conducts an audit associated to your ERC claim, they can also offer ongoing support.
It is essential to research study and vet any business offering ERC filing assistance to guarantee their credibility and expertise. Try to find established firms with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax experts who provide ERC submitting assistance.
Remember that while these companies can provide important support, it’s constantly a great idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified decisions and ensure precise filings.
The Worker 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 employees during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To qualify, companies need to meet one of two requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As mentioned 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 considerable decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline 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 is equal to a portion (up to 70%) of certified incomes paid to workers, including specific health plan expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received an Income Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they received a PPP loan. However, the same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, enabling eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for businesses to amend prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work tax returns, generally Type 941. The excess can be refunded to the company if the credit goes beyond the quantity of employment taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have actually developed gradually. The best strategy is to talk to a tax expert or go to the official internal revenue service website for the most detailed and current info relating to the ERC, consisting of any current legal changes or updates.
To get approved for the ERC, a company needs to fulfill one of the following criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt companies, but there are some exceptions. For example, government entities and companies that received a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC includes finishing the necessary types and consisting of the credit on your employment tax return (normally Type 941). The exact time it requires to process the credit can differ based upon a number of factors, including the complexity of your business and the workload of the internal revenue service. It’s recommended to speak with a tax professional for assistance specific to your situation.
There are a number of companies that can help with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some popular companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these business directly to inquire about their costs and services.
Please keep in mind that the details offered here is based upon general understanding and might not show the most current updates or modifications to the ERC. It is essential to seek advice from a tax expert or visit the main internal revenue service website for the most current and precise information relating to eligibility, declaring 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 workers whether they really worked or not. In other words, even if the.
employees worked full-time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
permitted only for incomes paid to workers who did not work during the calendar quarter.
In both cases, “earnings” includes not just cash payments however likewise a portion of the cost of company.
provided healthcare. Provider Relief Fund And Employee Retention Credit
Payment.
Employers can be right away reimbursed for the credit by decreasing the quantity of payroll taxes they.