Lets talk first about Reporting Disaster Area Employee Retention Credit :
Our team here what do these guys doing everyone in this space is helping teach individuals about ERC and uh always supply a gorgeous breakfast and have people really find out about the program we ought 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 millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I indicate you understand if you simply begin to take a 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 mean think of 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 validated the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you have the ability to track it you know when you
get this you know the check is chosen sure and that’s when they pay so they don’t pay anything till they actually get the cash they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they deposit it into their savings account and they can truly rely on Wonder trust that the procedure has actually been finished and how many you think you’ve processed since you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you require you require professionals 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 Wonderful here you’re at my YouTube channel we’re speaking about something actually important today the employee retention credit which most of you have never ever become aware of I certainly had not heard of it until very recently and discovered a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have workers between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder 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 just contact your bank manager and state give 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 become yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to find out all about it let’s talk employee 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 offered companies three 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money money payroll tax refund all right go on sorry I just need to make certain we got that point I mean that’s a big difference a loan versus cash cash I like money money that’s what we’re discussing alright 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 beautiful hard check in the mail where you get actual cash from the IRS all right so let’s discuss how it works because 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 people on the cap table not for investors it’s for staff members right you needed to have owned a business however it’s based on you having W-2 workers in America not 10.99. so 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 need to be on payroll for the first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per worker that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s salary to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that happen 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 five thousand Max and after that what takes place 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 because that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be decreased from the twenty 6 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 money someplace around 10 thousand dollars an individual so let’s say 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 IRS so it’s huge obviously now the big question is why does no one know about this because appearance when I initially found out about this when I first satisfied Josh you know I have actually got great deals of investments in great deals of business I’m a major advocate for entrepreneurship in America and make lots of many financial investments in business owners of which many suffered through the pandemic when I first found out about this I called BS I don’t believe it because I use the PPP we went through the cash center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we used them wisely 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 political leader good friends Guv Senators they didn’t learn about it I indicate that’s how you know 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 because you took the PPP likewise not real so let’s ask Josh why does no one understand about the employee retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that 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 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 just procedure process that’s all um and here there was mayhem due to the fact that remember in the initial cares act you might not do both programs so if you had actually 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 any person about how to.
do this does your CFO know how to do this not really she or he’s never done it previously do the banks do it nope the banks don’t do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this organization and bottom line my company Kevin has actually stayed in business because 2009 and we have actually been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge big business clients have actually worked with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, company whose business is fully or partly suspended.
decline by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is totally or partly 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 similar quarter in 2019. When the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying incomes differs by whether a company had, on average, basically than.
100 workers in 2019.
Companies that specialize in ERC filing help normally provide competence and assistance to help businesses navigate the complicated procedure of claiming the credit. They can use different services, including:.
How is the employee retention credit calculated? Reporting Disaster Area Employee Retention Credit
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you satisfy the requirements for the credit and determine the optimum credit quantity you can declare, they can assist identify.
Documents and Estimation: ERC filing services will assist in collecting the needed documentation, such as payroll records and monetary declarations, to support your claim. They will likewise assist determine the credit quantity based upon eligible incomes and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these companies can review your previous payroll records and financials to identify potential chances for retroactive credits. They can help you amend prior tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the required kinds and documents on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have actually evolved in time. These companies stay updated with the most recent changes and make sure that your filings abide by the most present standards. They can also supply continuous assistance if the internal revenue service requests extra info or performs an audit related to your ERC claim.
It’s important to research study and veterinarian any business providing ERC filing help to ensure their credibility and expertise. Try to find recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax experts who use ERC filing assistance.
Keep in mind that while these business can supply important help, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to encourage organizations to maintain 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 eligible companies, consisting of for-profit organizations, tax-exempt companies, and particular governmental entities. To qualify, employers need to meet one of two requirements:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As mentioned previously, for 2021, a significant decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices 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 amount is equal to a portion (as much as 70%) of certified salaries paid to workers, including specific 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, companies that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. Nevertheless, the exact same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, allowing eligible employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers a chance for companies to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be refunded to the company if the credit surpasses the quantity of work taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility criteria have evolved gradually. The very best strategy is to speak with a tax expert or go to the official IRS site for the most detailed and updated details regarding the ERC, including any recent legislative modifications or updates.
To qualify for the ERC, a service should fulfill among the following requirements:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and services that received a PPP loan may have limitations on declaring the credit.
The process for declaring the ERC includes finishing the essential forms and consisting of the credit on your work income tax return (generally Form 941). The exact time it requires to process the credit can differ based upon numerous factors, consisting of the intricacy of your organization and the workload of the IRS. It’s advised to speak with a tax expert for guidance specific to your scenario.
There are several companies that can aid with the process of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some well-known companies that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these companies directly to ask about their services and charges.
Please note that the details offered here is based upon basic understanding and may not show the most recent updates or modifications to the ERC. It’s important to speak with a tax expert or check out the main internal revenue service site for the most precise and current information regarding eligibility, declaring procedures, and available support.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on wages paid to all employees whether they really worked or not. Simply put, even if the.
workers worked full-time and got paid for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 employees on average in 2019, then the credit is.
permitted only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “incomes” includes not just cash payments however likewise a portion of the cost of company.
provided healthcare. Reporting Disaster Area Employee Retention Credit
Employers can be right away repaid for the credit by minimizing the amount of payroll taxes they.