Lets talk first about Can I Get The Employee Retention Credit :
Our team here what do these men doing everybody in this space is assisting teach individuals about ERC and uh always supply a beautiful breakfast and have individuals truly discover the program we need to head to the room where we are able to show some 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 actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the method I indicate you understand if you just start to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I mean think about the number of real customers 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 verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you understand when you
receive this you understand the check is gone for sure which’s when they pay so they do not pay anything till they in fact get the money they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their checking account and they can really rely on 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’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you need you need specialists 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 speaking about something really essential today the employee retention credit which the majority of you have never ever become aware of I certainly had not become aware of it until extremely just recently and found out a lot about it since this is probably the lowest expense of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator 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 up your bank manager and say give 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 ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to learn everything 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 developed the cares Act and the cares act provided services 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 big distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund all right go on sorry I simply need to make sure we got that point I suggest that’s a huge difference a loan versus cash money I like cash cash that’s what we’re talking 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 lovely tough check in the mail where you get actual money 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 employee retention credit that individual had to be a staff member so I’m going to make the Presumption this money 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 company however 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 qualified 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 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash just how much can you return per staff member that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s wage 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 salary to an optimum of seven thousand per quarter how did that take place um they just altered the rules in.
2021 versus because 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 as much as 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six 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 because that’s a great deal of money it is now there’s a caveat here the PPP cash would need to be minimized 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 typically Kevin is if you took PPP cash somewhere around 10 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 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 obviously now the big concern is why does nobody know about this since appearance when I initially heard about this when I initially fulfilled Josh you understand I’ve got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I first became aware of this I called BS I do not think it since I use the PPP we went through the cash center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well deserved and we utilized them sensibly to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even called to my politician friends Guv Senators they didn’t understand about it I imply that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan process 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 big 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 procedure that’s all um and here there was chaos since remember in the original 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 changed the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO know how to do this not actually she or he’s never ever done it previously do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually been in business given that 2009 and we have actually been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients have dealt with bottom line to recover other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other 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 as much as $10,000 in salaries paid by an.
company whose company is totally or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. Once the.
employer’s gross receipts exceed 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 certifying salaries paid up to $10,000 in total.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes differs by whether a company had, usually, more or less than.
100 employees in 2019.
Business that specialize in ERC filing assistance usually offer competence and support to assist businesses navigate the intricate procedure of claiming the credit. They can use different services, including:.
How is the employee retention credit calculated? Can I Get The Employee Retention Credit
Eligibility Evaluation: These companies will assess your business’s eligibility for the ERC based on elements such as your industry, revenue, and operations. They can help figure out if you meet the requirements for the credit and recognize the maximum credit quantity you can declare.
Documentation and Computation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit quantity based upon eligible earnings and other certifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify potential chances for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the necessary forms and documents on your behalf. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have developed gradually. These companies remain upgraded with the latest modifications and make sure that your filings comply with the most present guidelines. They can also provide ongoing support if the internal revenue service demands additional information or carries out an audit related to your ERC claim.
It is essential to research study and veterinarian any company offering ERC filing help to guarantee their credibility and competence. Look for established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who offer ERC filing assistance.
Remember that while these business can provide valuable support, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed choices and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to encourage companies to maintain and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit organizations, tax-exempt organizations, and specific governmental entities. To qualify, employers should fulfill one of two criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As pointed out previously, for 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of certified wages paid to staff members, consisting of specific health plan expenditures. The maximum 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 enables organizations to declare the ERC even if they received a PPP loan. Nevertheless, the exact same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, enabling qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to change prior-year income tax return and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, typically Form 941. The excess can be reimbursed to the company if the credit surpasses the quantity of employment taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility requirements have actually evolved over time. The very best course of action is to seek advice from a tax expert or visit the main internal revenue service site for the most up-to-date and in-depth information regarding the ERC, including any recent legal changes or updates.
To receive the ERC, an organization must fulfill among the following requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC includes completing the necessary forms and consisting of the credit on your work income tax return (usually Type 941). The exact time it requires to process the credit can differ based on a number of aspects, including the complexity of your organization and the work of the IRS. It’s advised to speak with a tax professional for assistance particular to your situation.
There are numerous business that can help with the process of claiming the ERC. Some popular companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details provided here is based on basic understanding and might not reflect the most recent updates or changes to the ERC. It is necessary to talk to a tax professional or go to the official internal revenue service website for the most accurate and updated details concerning eligibility, declaring procedures, and readily available help.
Less than 100. If the employer had 100 or less staff members typically in 2019, then the credit is based.
on salaries paid to all workers 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 employer still gets the credit.
Greater than 100. If the company had more than 100 workers usually in 2019, then the credit is.
permitted only for earnings paid to employees who did not work during the calendar quarter.
In both cases, “wages” includes not simply money payments but likewise a portion of the cost of company.
provided health care. Can I Get The Employee Retention Credit
Companies can be immediately repaid for the credit by decreasing the amount of payroll taxes they.