Lets talk first about Tony Nitti Employee Retention Credit :
Our group here what do these men doing everyone in this space is assisting teach individuals about ERC and uh always provide a stunning breakfast and have people really discover the program we should head to the room where we are able to show a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I imply you understand if you just start 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 simply I mean think of how many 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 verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you understand when you
get this you know the check is chosen sure and that’s when they pay so they do not pay anything up until they really receive the money they do not 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 really trust Wonder trust that the process has been ended up and the number of you think you have actually processed given that you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you need you need experts 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 talking about something truly essential today the employee retention credit which most of you have never become aware of I definitely hadn’t heard of it until very just recently and learned a lot about it due to the fact that this is most likely the lowest expense of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I have actually 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 challenging this isn’t like PPP we just call 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 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 like this program it’s going away very soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered organizations 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.
remedy the cash cash payroll tax refund fine go on sorry I simply have to ensure we got that point I mean that’s a huge distinction a loan versus cash cash I like cash money that’s what we’re speaking about fine 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 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 since it seems like to me if it’s a if it’s worker retention credit that individual had to be a worker 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 employees right you needed to have owned an organization but it’s based upon 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 qualified so you need 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 appropriate so there were 6 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. fine so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you get back per employee that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s income to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to an optimum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wished to even get more to keep those employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 up to 5 thousand Max and then what takes place 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 since that’s a great deal of cash it is now there’s a caution here the PPP cash would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial certainly now the huge question is why does no one understand about this because appearance when I first became aware of this when I initially fulfilled Josh you understand I’ve got great deals of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make many numerous investments in entrepreneurs of which numerous suffered through the pandemic when I initially found out about this I called BS I don’t believe it due to the fact that I use 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 during the pandemic so when I became aware of this I said nah it can’t be true however when I dug around I even called to my political leader good friends Guv Senators they didn’t know about it I indicate that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody know about the worker retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 big 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 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 might not do ERC in the original program and when they altered 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 ever made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it before 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 business your accountant no your accounting professional’s never ever done this before unless you have an account that entered into this business and bottom line my firm Kevin has actually stayed in business considering that 2009 and we have actually been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose company is fully or partly suspended.
decline by more than 50%.
Schedule.
1. The credit is readily available to all companies no matter size including tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. When the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether a company had, typically, more or less than.
100 staff members in 2019.
Business that concentrate on ERC filing support generally offer expertise and assistance to assist companies browse the complex process of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Tony Nitti Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based upon elements such as your market, earnings, and operations. If you satisfy the requirements for the credit and recognize the maximum credit quantity you can declare, they can help determine.
Documentation and Calculation: ERC filing services will assist in collecting the essential paperwork, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit quantity based on qualified earnings and other certifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can examine your past payroll records and financials to identify prospective chances for retroactive credits. They can assist you modify previous tax returns to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required types and documents on your behalf. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually developed with time. These companies remain updated with the most recent changes and make sure that your filings abide by the most current guidelines. They can likewise supply ongoing support if the internal revenue service demands additional information or performs an audit related to your ERC claim.
It’s important to research and vet any company offering ERC filing help to ensure their credibility and competence. Search for recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax experts who provide ERC submitting assistance.
Bear in mind that while these companies can supply valuable help, it’s always a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make informed choices and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage companies to maintain and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible companies, including for-profit businesses, tax-exempt companies, and specific governmental entities. To qualify, companies must satisfy one of two criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the exact 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% decrease in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a percentage (up to 70%) of certified wages paid to staff members, including specific health insurance 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: Initially, companies that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they got a PPP loan. The exact same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, enabling qualified companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for services to amend prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, normally Type 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the company.
It is essential to keep in mind that the ERC arrangements and eligibility criteria have actually progressed with time. The best course of action is to speak with a tax expert or check out the official internal revenue service site for the most updated and comprehensive information concerning the ERC, including any recent legal changes or updates.
To receive the ERC, a service should fulfill one of the following criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and companies that got a PPP loan may have limitations on claiming the credit.
The process for declaring the ERC includes finishing the required types and consisting of the credit on your employment tax return (normally Form 941). The exact time it takes to process the credit can vary based on numerous aspects, including the complexity of your business and the work of the internal revenue service. It’s suggested to consult with a tax professional for guidance particular to your situation.
There are numerous companies that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some well-known business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these companies directly to inquire about their costs and services.
Please note that the info offered here is based upon general knowledge and may not reflect the most recent updates or changes to the ERC. It is necessary to talk to a tax professional or visit the official internal revenue service site for the most accurate and updated info concerning eligibility, claiming treatments, and available support.
Less than 100. If the company had 100 or fewer employees typically in 2019, then the credit is based.
on salaries paid to all workers whether they actually worked or not. In other words, even if the.
workers worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers typically in 2019, then the credit is.
allowed just for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply cash payments but likewise a portion of the expense of employer.
supplied healthcare. Tony Nitti Employee Retention Credit
Payment.
Companies can be immediately reimbursed for the credit by reducing the quantity of payroll taxes they.