Lets talk first about Can You Get Ppp And Employee Retention Credit :
Our team here what do these people doing everyone in this room is assisting teach people about ERC and uh always offer a stunning breakfast and have people actually learn about the program we must head to the room where we have the ability to show some of the checks that we are getting for business and I wish 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 confirming that the check is on the method I suggest you know if you just start to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I imply think of how many real customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the consumer 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 which’s when they pay so they don’t pay anything up until they really receive the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their checking account and they can truly rely on Wonder trust that the process has been completed and how many you think you have actually processed since you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you require you need 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 Terrific here you’re at my YouTube channel we’re speaking about something actually essential today the employee retention credit which most of you have never heard of I certainly hadn’t heard of it until really just recently and learned a lot about it due to the fact that this is most likely the lowest expense of capital for any small business anywhere
anytime if you have workers between 5 and five hundred so I have actually got the professional 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 challenging this isn’t like PPP we simply call your bank supervisor and say 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 become yes the Ambassador and paid representative for this I enjoy this program it’s going away very soon you got to learn all 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 came up with the cares Act and the cares act used services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big distinction right there two of them are loans and one’s a refund exactly 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 certain we got that point I imply that’s a huge distinction a loan versus cash cash 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 initial cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get real cash 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 worker retention credit that individual had to be a staff member so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for investors it’s for workers right you needed to have owned a service but it’s based upon you having W-2 employees 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 6 quarters the program was open well stroll us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s salary 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 wage to an optimum of seven thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the chaos of the pandemic so they wished 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 after that what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of cash it is now there’s a caution here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace 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 employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial obviously now the big concern is why does nobody learn about this because appearance when I first became aware of this when I initially met Josh you understand I’ve got lots of investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous lots of investments in entrepreneurs of which numerous suffered through the pandemic when I initially heard about this I called BS I do not think it because 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 wisely to survive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even contacted us to my political leader friends Guv Senators they didn’t know about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a bunch of people 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 learn about the employee retention credit you know what’s interesting you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it very 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 procedure that’s all um and here there was chaos 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 altered the law in 2021 the banks were not doing ERC because 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 do not do it the payroll business yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this business and bottom line my firm Kevin has actually stayed in business considering that 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge big corporate clients have actually dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Since of COVID-19 or whose gross receipts, employer whose business is totally or partly suspended.
decline by more than 50%.
1. The credit is readily available to all companies despite size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. Once the.
company’s gross invoices exceed 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 certifying incomes paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries differs by whether an employer had, usually, basically than.
100 staff members in 2019.
Business that concentrate on ERC filing help typically provide proficiency and assistance to assist services navigate the complicated process of declaring the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Can You Get Ppp And Employee Retention Credit
Eligibility Evaluation: These business will assess your organization’s eligibility for the ERC based on elements such as your market, profits, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can claim, they can assist figure out.
Paperwork and Calculation: ERC filing services will assist in collecting the essential documentation, such as payroll records and financial statements, to support your claim. They will likewise help compute the credit quantity based on eligible incomes and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify potential chances for retroactive credits. They can assist you change prior income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and submit the essential forms and documents in your place. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have actually progressed in time. These companies stay upgraded with the most recent changes and make sure that your filings abide by the most existing guidelines. If the Internal revenue service demands extra info or carries out an audit associated to your ERC claim, they can likewise supply continuous support.
It is necessary to research study and veterinarian any business offering ERC filing help to guarantee their credibility and proficiency. Search for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax experts who use ERC filing assistance.
Remember that while these companies can provide important assistance, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified choices and make sure accurate filings.
The Worker 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 motivate services to retain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit services, tax-exempt organizations, and particular governmental entities. To qualify, employers must meet one of two criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross receipts. As discussed earlier, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of qualified salaries paid to staff members, including certain health insurance costs. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, allowing eligible companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for organizations to amend 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, normally Form 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the company.
It is essential to keep in mind that the ERC arrangements and eligibility requirements have actually evolved over time. The best course of action is to seek advice from a tax professional or visit the main internal revenue service website for the most detailed and current info regarding the ERC, including any current legislative modifications or updates.
To get approved for the ERC, a business must meet one of the following criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. For example, federal government entities and organizations that got a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC involves finishing the needed types and including the credit on your employment tax return (normally Form 941). The exact time it requires to process the credit can differ based upon several elements, including the intricacy of your business and the workload of the internal revenue service. It’s suggested to talk to a tax professional for assistance specific to your circumstance.
There are several companies that can assist with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some popular business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these companies directly to inquire about their services and charges.
Please keep in mind that the details supplied here is based upon basic knowledge and might not show the most recent updates or changes to the ERC. It is essential to seek advice from a tax professional or check out the official IRS website for the most updated and precise details concerning eligibility, claiming procedures, and readily available help.
Less than 100. If the employer had 100 or fewer workers on average in 2019, then the credit is based.
on salaries paid to all workers whether they really worked or not. In other words, even if the.
employees 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 on average in 2019, then the credit is.
permitted just for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply cash payments but likewise a portion of the expense of company.
provided health care. Can You Get Ppp And Employee Retention Credit
Employers can be instantly reimbursed for the credit by lowering the quantity of payroll taxes they.