Lets talk first about Aggregation Rules Employee Retention Credit :
Our group here what do these people doing everyone in this space is assisting teach individuals about ERC and uh constantly supply a lovely breakfast and have people really discover the program we must 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 countless dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I mean you know if you simply 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 suggest it’s just I mean think of the number of real clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are validated 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 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 up until they actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their bank account and they can truly trust Wonder trust that the process has been finished and the number of you believe you have actually processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you need you require 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 Wonderful here you’re at my YouTube channel we’re talking about something truly essential today the employee retention credit which most of you have actually never ever heard of I certainly had not heard of it till very recently and discovered a lot about it since this is probably the most affordable expense of capital for any small company anywhere
anytime if you have staff members between 5 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 largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply phone your bank supervisor and state provide me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing soon you got to discover everything about it let’s talk employee 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 companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund okay go on sorry I simply need to make sure we got that point I imply that’s a big difference a loan versus money cash I like cash cash 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 initial cares Act is the ERC and yes Kevin it is a gorgeous difficult check in the mail where you get actual 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 worker retention credit that person had to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have actually owned a service but it’s based upon you having W-2 staff members in America not 10.99. so as long as you had W-2 staff members 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 have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my preferred part money just 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 worker’s wage to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to a maximum of seven thousand per quarter how did that take place um they just altered 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 workers 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 come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment in New York 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 huge clearly now the huge concern is why does nobody know about this because look when I first found out about this when I initially fulfilled Josh you know I’ve got great deals of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make numerous lots of investments in business owners of which numerous suffered through the pandemic when I initially became aware of this I called BS I don’t think it because I utilize the PPP we went through the money 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 carefully to stay alive 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 called to my political leader pals Guv Senators they didn’t learn 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 individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody learn about the staff member retention credit you understand what’s intriguing you’re speaking about the banks Kevin since 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 nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process procedure that’s all um and here there was turmoil since remember in the initial cares act you could not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed 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 any person about how to.
do this does your CFO know how to do this not really he or she’s never ever 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 business your accounting professional no your accountant’s never done this before unless you have an account that entered into this service and bottom line my company Kevin has been in business since 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance 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 designed to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Since of COVID-19 or whose gross invoices, company whose organization is totally or partially suspended.
decline by more than 50%.
1. The credit is offered to all companies no matter size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. When the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages differs by whether a company had, typically, basically than.
100 employees in 2019.
Business that focus on ERC filing support usually offer competence and support to help services browse the complex procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Aggregation Rules Employee Retention Credit
Eligibility Evaluation: These companies will examine your company’s eligibility for the ERC based upon aspects such as your market, income, and operations. If you fulfill the requirements for the credit and determine the optimum credit amount you can declare, they can assist figure out.
Documents and Calculation: ERC filing services will help in gathering the needed documents, such as payroll records and monetary statements, to support your claim. They will also assist determine the credit quantity based on eligible salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can examine your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you amend prior income tax return to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and submit the needed types and documents on your behalf. This consists of completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have evolved over time. These business stay updated with the current modifications and guarantee that your filings adhere to the most present standards. They can likewise supply ongoing assistance if the IRS demands extra details or carries out an audit related to your ERC claim.
It is necessary to research study and vet any business offering ERC filing support to guarantee their trustworthiness and expertise. Search for recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax experts who provide ERC filing support.
Bear in mind that while these business can provide valuable support, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to motivate businesses to keep and pay their workers throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, including for-profit services, tax-exempt companies, and specific governmental entities. To qualify, companies need to fulfill one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross invoices compared to the very 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 amount is equal to a percentage (up to 70%) of certified earnings paid to employees, including specific health plan 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, organizations that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they received a PPP loan. The very same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, permitting eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for services to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Kind 941. The excess can be refunded to the employer if the credit goes beyond the amount of work taxes owed.
It is necessary to note that the ERC provisions and eligibility criteria have evolved gradually. The very best course of action is to talk to a tax expert or visit the main internal revenue service website for the most in-depth and current info relating to the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, an organization must meet one of the following requirements:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For example, federal government entities and organizations that got a PPP loan might have constraints on claiming the credit.
The procedure for claiming the ERC involves completing the required forms and consisting of the credit on your employment income tax return (usually Type 941). The exact time it requires to process the credit can differ based on a number of elements, consisting of the complexity of your organization and the workload of the internal revenue service. It’s suggested to consult with a tax expert for assistance particular to your circumstance.
There are numerous business that can assist with the procedure of declaring the ERC. Some popular companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details offered here is based upon basic knowledge and might not show the most current updates or changes to the ERC. It is necessary to talk to a tax expert or visit the official IRS site for the most current and precise information relating to eligibility, claiming treatments, and readily available assistance.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on incomes paid to all employees whether they actually worked or not. In other words, even if the.
employees worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
enabled only for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply cash payments but likewise a part of the expense of company.
offered health care. Aggregation Rules Employee Retention Credit
Employers can be immediately reimbursed for the credit by decreasing the quantity of payroll taxes they.