Lets talk first about Deadline For Filing For Employee Retention Credit :
Our team here what do these guys doing everyone in this space is helping teach individuals about ERC and uh always supply a gorgeous breakfast and have people really learn more about the program we must head to the room where we have the ability to display some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I suggest you know if you simply start to take a look at a few of these here I imply 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 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 IRS heading to the customer so that’s how you have the ability to track it you know when you
receive this you know the check is opted for sure and that’s when they pay so they don’t pay anything until they actually get the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the way they transfer it into their bank account and they can really rely on Wonder trust that the procedure has actually been ended up and how many you think you’ve processed since you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you require you require specialists 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 Terrific here you’re at my YouTube channel we’re talking about something actually crucial today the employee retention credit which the majority of you have never become aware of I definitely hadn’t heard of it till really recently and found out a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just call your bank supervisor and state offer 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 like this program it’s going away soon you got to discover 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 provided organizations three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund okay go on sorry I simply need to make certain we got that point I imply that’s a huge difference a loan versus money cash I like cash money that’s what we’re discussing 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 stunning hard check in the mail where you get real cash from the internal revenue service 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 individual needed 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 shareholders it’s for employees right you had to have owned an organization but it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 employees 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 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 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and three 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 money how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be specific Kevin is 50 of the staff member’s salary to a maximum of five 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 changed the rules in.
2021 versus since the mayhem 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 up to 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a great deal of money it is now there’s a caveat here the PPP cash would have to be reduced 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 somewhere around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred staff members and you took PPP cash 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 learn about this due to the fact that look when I first found out about this when I first satisfied Josh you understand I have actually got lots of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make many numerous investments in entrepreneurs of which many suffered through the pandemic when I initially 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 really easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them wisely to survive throughout the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my politician good friends Guv Senators they didn’t understand about it I imply that’s how you know that’s how false information is that there’s no information out there then a bunch of people informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one learn about the employee retention credit you understand what’s interesting you’re speaking about the banks Kevin due to the fact that 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 huge banks in our country and they would process process 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 chaos since remember in the original cares act you could 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 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 previously do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll company 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 company Kevin has been in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate clients have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
company whose business is fully or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all companies no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is totally or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. When the.
company’s gross receipts 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 incomes paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying incomes differs by whether an employer had, on average, more or less than.
100 staff members in 2019.
Companies that concentrate on ERC filing assistance usually offer proficiency and support to help organizations navigate the complex procedure of claiming the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Deadline For Filing For Employee Retention Credit
Eligibility Assessment: These business will evaluate your organization’s eligibility for the ERC based upon factors such as your market, earnings, and operations. They can assist identify if you meet the requirements for the credit and determine the optimum credit amount you can declare.
Documents and Estimation: ERC filing services will assist in collecting the required documentation, such as payroll records and financial declarations, to support your claim. They will also assist calculate the credit amount based on eligible earnings and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can review your previous payroll records and financials to recognize potential chances for retroactive credits. They can assist you change previous income tax return to claim these refunds.
Filing Help: Companies specializing in ERC filings will prepare and send the required types and documentation in your place. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have actually developed gradually. These companies remain upgraded with the most recent changes and ensure that your filings adhere to the most present standards. If the Internal revenue service demands additional info or carries out an audit related to your ERC claim, they can also provide continuous support.
It is very important to research and vet any business using ERC filing assistance to ensure their credibility and competence. Try to find recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting companies or tax experts who provide ERC filing support.
Keep in mind that while these companies can provide important assistance, it’s always a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed choices and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to encourage services to maintain and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit organizations, tax-exempt companies, and particular governmental entities. To qualify, employers must satisfy one of two criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As mentioned previously, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of certified wages paid to staff members, consisting of specific health insurance 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: At first, companies that got an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. However, the very same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing eligible companies to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision supplies a chance for businesses to amend prior-year income tax return and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work tax returns, normally Kind 941. The excess can be reimbursed to the employer if the credit exceeds the amount of employment taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility requirements have evolved gradually. The best strategy is to seek advice from a tax expert or go to the main IRS site for the most in-depth and up-to-date information regarding the ERC, including any recent legislative changes or updates.
To receive the ERC, a company must meet among the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt organizations, however there are some exceptions. For example, federal government entities and companies that got a PPP loan might have limitations on declaring the credit.
The process for claiming the ERC involves finishing the essential types and consisting of the credit on your work tax return (generally Form 941). The exact time it takes to process the credit can vary based on numerous aspects, consisting of the complexity of your business and the workload of the internal revenue service. It’s advised to talk to a tax professional for guidance particular to your situation.
There are a number of companies that can assist with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some well-known companies that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these companies directly to inquire about their services and costs.
Please keep in mind that the information provided here is based on basic understanding and may not show the most recent updates or changes to the ERC. It’s important to talk to a tax professional or check out the official IRS site for the most accurate and updated information regarding eligibility, claiming treatments, and offered help.
Less than 100. If the employer had 100 or fewer employees on average in 2019, then the credit is based.
on wages paid to all staff members whether they in fact worked or not. Simply put, even if the.
staff members 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 staff members usually in 2019, then the credit is.
allowed only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just cash payments however likewise a portion of the expense of employer.
offered healthcare. Deadline For Filing For Employee Retention Credit
Companies can be right away repaid for the credit by minimizing the quantity of payroll taxes they.