Lets talk first about Can I Still File For Employee Retention Credit :
Our group here what do these people doing everybody in this space is helping teach people about ERC and uh constantly supply a lovely breakfast and have individuals really discover the program we ought to head to the room where we have the ability to show some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I mean you understand if you simply begin to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I mean think about how many real customers 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 internal revenue service heading to the client so that’s how you have the ability to track it you know when you
get this you know the check is opted for sure which’s when they pay so they do not pay anything till they really receive the cash they don’t pay bottom line Wonder trust anything until this letter is validated the check is on the method they deposit it into their checking account and they can truly trust Wonder trust that the process has been completed 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 know what they’re doing which’s what you need you require 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 discussing something really essential today the worker retention credit which the majority of you have never ever become aware of I definitely hadn’t become aware of it up until extremely just recently and learned a lot about it due to the fact that this is probably the most affordable cost of capital for any small company anywhere
anytime if you have employees between five and five hundred so I’ve got the specialist 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 hard this isn’t like PPP we just contact your bank supervisor and say provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money money payroll tax refund fine go on sorry I just need to make certain we got that point I imply that’s a huge difference a loan versus money money I like cash money that’s what we’re discussing 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 stunning tough check in the mail where you get real money from the IRS all right so let’s talk about how it works because it sounds 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 Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you had to have actually owned a service 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 very first six months of 2021 on the W-2 right so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 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 during that period now let’s talk my favorite part cash just how much can you get back per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the mayhem of the pandemic so they wanted 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 occurs 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 6 thousand dollars per worker that is because that’s a great deal of money it is now there’s a caution here the PPP cash would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge undoubtedly now the big concern is why does no one learn about this due to the fact that look when I initially heard about this when I initially satisfied Josh you understand I’ve got lots of investments in lots of business I’m a significant supporter for entrepreneurship in America and make lots of lots of financial investments in business owners of which numerous suffered through the pandemic when I first found out about this I called BS I do not think it since I use 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 sensibly to stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my political leader pals Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how misinformation is that there’s no details out there then a lot of individuals told me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s fascinating you’re talking about the banks Kevin because 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 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 simply process procedure that’s all um and here there was turmoil since remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they changed the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO understand how to do this not actually he or she’s never done it in the past do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never done this before unless you have an account that entered into this company and bottom line my company Kevin has been in business considering that 2009 and we have actually been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge business clients have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Since of COVID-19 or whose gross invoices, company whose company is completely or partially suspended.
decrease by more than 50%.
1. The credit is offered to all employers regardless of size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. Once the.
employer’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of certifying wages varies by whether a company had, usually, basically than.
100 employees in 2019.
Business that specialize in ERC filing support normally provide competence and support to assist companies browse the complex procedure of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Can I Still File For Employee Retention Credit
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based on elements such as your industry, income, and operations. They can help identify if you fulfill the requirements for the credit and identify the maximum credit quantity you can declare.
Documentation and Computation: ERC filing services will help in gathering the necessary paperwork, such as payroll records and financial statements, to support your claim. They will likewise help compute the credit amount based upon qualified wages and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can examine your previous payroll records and financials to recognize potential chances for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the essential forms and documents in your place. This consists of completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and assistance have actually developed in time. These business remain upgraded with the current changes and guarantee that your filings abide by the most present standards. If the IRS requests additional details or carries out an audit associated to your ERC claim, they can also offer continuous assistance.
It’s important to research and veterinarian any business offering ERC filing help to ensure their reliability and expertise. Search for established firms with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax experts who offer ERC submitting assistance.
Remember that while these companies can offer important support, it’s always a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and ensure precise 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 encourage businesses to retain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To qualify, employers must satisfy one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As mentioned previously, for 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable 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 employer’s share of Social Security taxes. The credit quantity amounts to a portion (approximately 70%) of certified wages paid to staff members, including specific health insurance expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. However, the exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, permitting eligible employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for organizations to modify prior-year tax returns and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, usually Form 941. The excess can be refunded to the company if the credit goes beyond the quantity of employment taxes owed.
It is necessary to note that the ERC arrangements and eligibility criteria have developed in time. The very best strategy is to talk to a tax professional or go to the main IRS site for the most current and detailed details regarding the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a company must meet among the following criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. Federal government entities and services that got a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC involves completing the essential forms and including the credit on your work tax return (typically Form 941). The exact time it takes to process the credit can vary based on a number of elements, consisting of the complexity of your organization and the work of the IRS. It’s advised to speak with a tax expert for assistance specific to your situation.
There are numerous business that can help with the procedure of claiming the ERC. Some well-known companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based upon basic knowledge and may not show the most recent updates or changes to the ERC. It is necessary to seek advice from a tax expert or visit the main internal revenue service site for the most precise and updated information relating to eligibility, declaring treatments, and available help.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on wages paid to all employees whether they actually worked or not. Simply put, even if the.
staff members worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
permitted only for salaries paid to workers who did not work during the calendar quarter.
In both cases, “incomes” consists of not just cash payments but also a part of the expense of employer.
supplied health care. Can I Still File For Employee Retention Credit
Companies can be right away compensated for the credit by reducing the amount of payroll taxes they.