Lets talk first about Cain Watters Employee Retention Credit :
Our team here what do these men doing everyone in this room is helping teach people about ERC and uh constantly supply a gorgeous breakfast and have individuals actually find out 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 business and I want to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I indicate you know if you simply 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 suggest it’s simply I suggest think of the number of real 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 validated and the check is on the mail in the mail from the internal revenue service heading to the customer 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 don’t pay anything up until they actually receive the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their checking account and they can genuinely rely on Wonder trust that the process 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 plainly 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 among these that’s what matters all right Mr Fantastic here you’re at my YouTube channel we’re discussing 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 up until very just recently and found out a lot about it since this is probably the most affordable cost of capital for any small business anywhere
anytime if you have employees 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 Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call 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 tell us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away very soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during 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 practically everyone it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the cash cash payroll tax refund okay go on sorry I simply have to make sure we got that point I mean that’s a big distinction a loan versus money cash I like cash money that’s what we’re speaking about 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 gorgeous tough check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works due to the fact that it sounds like to me if it’s a if it’s staff member retention credit that person had to be an employee so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have actually owned an organization 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 need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s wage to an optimum of seven thousand per quarter how did that take place um they just altered the rules in.
2021 versus since the turmoil 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 approximately 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you develop 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 because that’s a lot of cash it is now there’s a caution here the PPP money would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around 10 thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New York 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 internal revenue service so it’s substantial undoubtedly now the huge question is why does nobody 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 financial investments in lots of companies I’m a significant advocate for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I don’t think it due to the fact that I use 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 which were well should have and we used them sensibly to survive during the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my political leader buddies Guv Senators they didn’t learn about it I indicate that’s how you understand that’s how false information 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 also not true so let’s ask Josh why does no one know about the staff member retention credit you know what’s intriguing you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it extremely 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 just procedure process that’s all um and here there was turmoil because keep in mind in the original cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that 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 ever done it in the past 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 accountant’s never done this before unless you have an account that entered into this business and bottom line my firm Kevin has been in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose organization is fully or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. When the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying salaries varies by whether a company had, usually, basically than.
100 workers in 2019.
Companies that focus on ERC filing support generally offer expertise and support to assist businesses navigate the complex process of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Cain Watters Employee Retention Credit
Eligibility Assessment: These companies will evaluate your organization’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can claim, they can assist identify.
Documents and Estimation: ERC filing services will help in gathering the required paperwork, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit amount based on qualified salaries and other certifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these business can evaluate your past payroll records and financials to determine potential opportunities for retroactive credits. They can assist you modify prior income tax return to claim these refunds.
Filing Support: Business specializing in ERC filings will prepare and send the necessary forms and documents in your place. This includes completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have progressed gradually. These companies remain updated with the current changes and guarantee that your filings comply with the most existing guidelines. If the Internal revenue service requests extra info or conducts an audit related to your ERC claim, they can also supply continuous assistance.
It is necessary to research and veterinarian any company using ERC filing help to guarantee their credibility and proficiency. Try to find recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax professionals who use ERC filing support.
Keep in mind that while these business can offer important help, it’s always a great concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified choices and make sure precise filings.
The Staff Member 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 businesses to keep and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit businesses, tax-exempt companies, and specific governmental entities. To qualify, employers need to fulfill one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As mentioned previously, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a portion (as much as 70%) of certified earnings paid to staff members, consisting of certain health plan costs. The optimum credit per employee 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 Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they received a PPP loan. However, the very same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, enabling eligible employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies a chance for organizations to modify prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Kind 941. If the credit goes beyond the amount of employment taxes owed, the excess can be refunded to the employer.
It is very important to note that the ERC arrangements and eligibility requirements have actually developed gradually. The best course of action is to talk to a tax expert or visit the main IRS website for the most current and detailed details concerning the ERC, consisting of any recent legal changes or updates.
To get approved for the ERC, a service must satisfy among the following criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. For instance, government entities and services that got a PPP loan might have constraints on declaring the credit.
The procedure for claiming the ERC includes completing the needed types and consisting of the credit on your work income tax return (normally Kind 941). The exact time it takes to process the credit can differ based on a number of factors, consisting of the complexity of your business and the workload of the internal revenue service. It’s recommended to seek advice from a tax expert for guidance particular to your circumstance.
There are a number of companies that can aid with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some popular companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and call these business directly to ask about their charges and services.
Please note that the details offered here is based on basic understanding and might not show the most recent updates or modifications to the ERC. It’s important to seek advice from a tax professional or check out the main IRS site for the most accurate and up-to-date details regarding eligibility, claiming procedures, and readily available support.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on salaries paid to all staff members whether they actually worked or not. To put it simply, even if the.
workers worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 staff members usually in 2019, then the credit is.
enabled just for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply cash payments but likewise a portion of the cost of employer.
offered healthcare. Cain Watters Employee Retention Credit
Employers can be right away reimbursed for the credit by lowering the quantity of payroll taxes they.