Lets talk first about What Is Innovation Refunds.Com :
Our team here what do these people doing everybody in this room is helping teach individuals about ERC and uh always provide a lovely breakfast and have people really find out about the program we ought to head to the room where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I suggest you understand if you simply start to look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I suggest think of the number of actual customers 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 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 understand when you
get this you know the check is gone for sure and that’s when they pay so they do not pay anything till they really receive the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the method they deposit it into their bank account and they can truly rely on Wonder trust that the process has 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 six billion dollars wow so clearly they know what they’re doing and that’s what you need you need professionals 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 speaking about something actually crucial today the staff member retention credit which most of you have never ever become aware of I definitely hadn’t heard of it until very recently and learned a lot about it due to the fact that this is probably the lowest cost of capital for any small business anywhere
anytime if you have employees between 5 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 largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply contact your bank manager 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 us all 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 soon you got to learn all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I just have to make sure we got that point I indicate that’s a huge distinction a loan versus money cash I like money 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 lovely difficult check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works because 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 Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for employees right you needed to have owned a company but it’s based on you having W-2 staff members 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 2 and three of 2021. okay so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my preferred part cash how much can you return per employee that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to a maximum of seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus because the chaos of the pandemic so they wished 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 up to 5 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 six thousand dollars per employee that is since that’s a lot of money it is now there’s a caution here the PPP cash would have to be minimized from the twenty six 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 money someplace around ten thousand dollars a person so let’s state hypothetically you owned a restaurant 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 substantial clearly now the big question is why does no one understand about this since look when I first became aware of this when I initially satisfied Josh you know I have actually got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make many lots of investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I don’t think it since I utilize 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 and that were well deserved and we used them sensibly to survive during the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even called to my politician buddies Guv Senators they didn’t know about it I indicate that’s how you know that’s how misinformation is that there’s no info out there then a lot of people told me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does no one learn about the employee retention credit you understand what’s fascinating you’re discussing the banks Kevin because in the PPP loan process the federal government made it very 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was turmoil due to the fact that remember in the initial cares act you might not do both programs so if you had done PPP you might not do 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 ever made it clear to anybody about how to.
do this does your CFO know how to do this not really she or he’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accounting professional’s never done this prior to unless you have an account that went into this company and bottom line my firm Kevin has been in business considering that 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 great deal of our huge huge business clients have actually dealt with bottom line to recover other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
company whose service is totally or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all employers no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are computed 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 receipts are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes varies by whether a company had, on average, more or less than.
100 workers in 2019.
Companies that concentrate on ERC filing support generally offer know-how and assistance to assist organizations browse the complicated process of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? What Is Innovation Refunds.Com
Eligibility Assessment: These companies will evaluate your company’s eligibility for the ERC based on elements such as your industry, profits, and operations. They can assist identify if you fulfill the requirements for the credit and determine the maximum credit quantity you can claim.
Paperwork 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 incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can review your past payroll records and financials to determine potential chances for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the needed kinds and documents in your place. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have actually evolved in time. These business stay updated with the current modifications and make sure that your filings adhere to the most current standards. If the Internal revenue service requests additional info or conducts an audit associated to your ERC claim, they can also supply ongoing assistance.
It is necessary to research study and vet any business offering ERC filing help to guarantee their reliability and knowledge. Look for recognized firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax specialists who provide ERC filing support.
Bear in mind that while these companies can supply important assistance, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and ensure accurate 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 encourage services to keep 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 readily available to eligible employers, including for-profit services, tax-exempt companies, and particular governmental entities. To qualify, companies must satisfy one of two criteria:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As pointed out previously, for 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (as much as 70%) of qualified incomes paid to workers, consisting of particular health insurance expenditures. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. However, the very same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, enabling eligible companies to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for businesses to modify prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment income tax return, typically Type 941. The excess can be reimbursed to the employer if the credit goes beyond the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have progressed gradually. The best course of action is to seek advice from a tax professional or visit the main IRS site for the most detailed and updated info relating to the ERC, including any recent legislative modifications or updates.
To get approved for the ERC, an organization needs to meet one of the following requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a significant decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that received a PPP loan might have limitations on claiming the credit.
The procedure for declaring the ERC involves finishing the necessary forms and including the credit on your employment income tax return (normally Form 941). The exact time it takes to process the credit can differ based on several aspects, consisting of the complexity of your service and the workload of the IRS. It’s recommended to seek advice from a tax professional for guidance specific to your circumstance.
There are a number of companies that can help with the process of claiming the ERC. Some widely known companies that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info supplied here is based upon basic knowledge and might not show the most current updates or changes to the ERC. It is necessary to consult with a tax professional or visit the main IRS site for the most precise and updated details concerning eligibility, claiming procedures, and readily available assistance.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on earnings paid to all employees whether they actually worked or not. Simply put, even if the.
staff members worked full-time and made money 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 only for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply money payments but also a portion of the cost of company.
offered healthcare. What Is Innovation Refunds.Com
Employers can be right away repaid for the credit by reducing the amount of payroll taxes they.