New Article: Retroactive Employee Retention Credit 2023

Lets talk first about Retroactive Employee Retention Credit :

Our team here what do these men doing everybody in this space is assisting teach individuals about ERC and uh always provide a gorgeous breakfast and have people truly learn more about the program we need to head to the space where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I imply you understand if you just start to take a 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 indicate it’s just I mean think about 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 validated the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you understand when you

receive this you know the check is opted for sure and that’s when they pay so they do not pay anything up until they in fact get the cash they don’t pay bottom line Wonder trust anything up until this letter is verified 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 the number of you believe you have actually processed because you started this we have to do with 35 000 of these for

 


about 6 billion dollars wow so clearly they know what they’re doing and that’s what you need you require experts 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 actually essential today the employee retention credit which most of you have actually never become aware of I certainly hadn’t heard of it up until really recently and discovered a lot about it due to the fact that this is most likely the most affordable expense of capital for any small company anywhere

anytime if you have employees between five and five hundred so I have actually got the specialist 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 phone your bank manager and state 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 spokesperson for this I enjoy 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 begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided businesses three 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 distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.

remedy the money money payroll tax refund alright go on sorry I just need to ensure we got that point I mean that’s a huge distinction 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 initial cares Act is the ERC and yes Kevin it is a lovely hard check in the mail where you get real money from the IRS all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that person needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have owned a company however 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 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 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 throughout that period now let’s talk my favorite part money how much can you get back per staff member that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s salary to a maximum of 5 thousand dollars per employee 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 occur um they just changed the rules in.

2021 versus since the mayhem 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 approximately 5 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 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a great deal of cash it is now there’s a caution here the PPP money would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere 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 employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge clearly now the big question is why does nobody learn about this since appearance when I first found out about this when I initially satisfied Josh you know I’ve got great deals of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of many 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 because I use the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we utilized them carefully to survive during the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my politician pals Governor Senators they didn’t learn about it I indicate that’s how you know that’s how false information is that there’s no info out there then a lot of individuals informed me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does no one know about the staff member 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 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process that’s all um and here there was chaos due to the fact that keep in mind in the original cares act you might not do both programs so if you had done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were refraining from 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 really he or she’s never done it previously do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never ever done this before unless you have an account that entered into this service and bottom line my company Kevin has actually stayed in business given that 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big huge business customers 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 property tax all of these other government programs.

The worker retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, employer whose business is completely or partly suspended.
decrease by more than 50%.
Availability.
1. The credit is offered to all companies despite size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts go above 80% of an equivalent 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 qualifying incomes paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether an employer had, usually, basically than.
100 staff members in 2019.

Business that specialize in ERC filing assistance typically supply expertise and assistance to assist organizations navigate the complicated process of claiming the credit. They can use numerous services, consisting of:.

 

How is the employee retention credit calculated? Retroactive Employee Retention Credit

Eligibility Assessment: These companies will examine your business’s eligibility for the ERC based upon factors such as your industry, income, and operations. If you meet the requirements for the credit and determine the optimum credit amount you can declare, they can assist figure out.
Documentation and Estimation: ERC filing services will assist in collecting the needed documentation, such as payroll records and financial statements, to support your claim. They will also assist determine the credit quantity based upon eligible wages and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can examine your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you modify previous income tax return to declare these refunds.
Filing Help: Business focusing on ERC filings will prepare and submit the required kinds and documents in your place. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually progressed with time. These business remain upgraded with the latest changes and guarantee that your filings comply with the most current standards. If the IRS requests extra details or carries out an audit associated to your ERC claim, they can likewise offer ongoing support.
It is essential to research study and vet any company offering ERC filing support to ensure their credibility and expertise. Search for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax experts who provide ERC submitting assistance.

Bear in mind that while these business can supply important help, it’s constantly a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and ensure accurate filings.

The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate companies to retain and pay their employees throughout the pandemic, even if their operations have been impacted.

Here are some key points about the ERC:.

Eligibility: The ERC is available to eligible employers, consisting of for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, companies should meet one of two requirements:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As discussed previously, for 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant 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 immediately 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 qualified salaries paid to staff members, including particular health plan expenses. 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 got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. The very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, enabling qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for organizations to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, typically Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the company.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have progressed in time. The best course of action is to speak with a tax professional or check out the official IRS site for the most in-depth and up-to-date information concerning the ERC, including any current legislative changes or updates.

To receive the ERC, a business needs to fulfill among the following criteria:.

The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and companies that got a PPP loan might have restrictions on declaring the credit.

The process for claiming the ERC involves completing the required types and consisting of the credit on your employment income tax return (typically Type 941). The exact time it takes to process the credit can vary based upon a number of factors, including the complexity of your business and the work of the IRS. It’s advised to talk to a tax professional for guidance specific to your circumstance.

There are numerous companies that can assist with the process of claiming the ERC. Some well-known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.

Please keep in mind that the info offered here is based on general understanding and might 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 internal revenue service site for the most precise and updated details regarding eligibility, claiming procedures, and offered support.

Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on earnings paid to all workers whether they really worked or not. In other words, even if the.
staff members 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 workers typically in 2019, then the credit is.
permitted just for earnings paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply money payments however likewise a portion of the cost of company.
offered healthcare. Retroactive Employee Retention Credit
Payment.

Employers can be immediately repaid for the credit by reducing the amount of payroll taxes they.