Lets talk first about Do Employees Get Employee Retention Credit :
Our team here what do these guys doing everybody in this space is helping teach individuals about ERC and uh always offer a stunning breakfast and have individuals actually discover the program we must head to the space where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I indicate you understand if you just start to take a look at some of these here I mean 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 actual clients 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’re able to track it you know when you
get this you know the check is chosen sure which’s when they pay so they don’t pay anything up until they actually receive the money they don’t pay bottom line Wonder trust anything till this letter is validated the check is on the method they deposit it into their checking account and they can truly rely on Wonder trust that the procedure has actually been ended up and how many you think you have actually processed considering that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you require you need 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 Wonderful here you’re at my YouTube channel we’re talking about something actually important today the employee retention credit which the majority of you have actually never ever become aware of I definitely had not heard of it up until very recently and discovered a lot about it due to the fact that this is probably the lowest 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 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 simply phone your bank manager and say provide me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve 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 just start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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 money payroll tax refund okay go on sorry I just need to ensure we got that point I mean that’s a big distinction 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 beautiful difficult check in the mail where you get actual money from the IRS all right so let’s speak about how it works because it sounds like to me if it’s a if it’s employee retention credit that individual needed to be a worker 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 needed to have owned an organization but it’s based on you having W-2 workers in America not 10.99. As long as you had W-2 workers 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 appropriate so there were 6 quarters the program was open well stroll 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. alright so that’s how it’s determined you need 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 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s wage to a maximum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wanted 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 up to five thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caution here the PPP money would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing usually 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 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 IRS so it’s big clearly now the big concern is why does nobody understand about this due to the fact that look when I first found out about this when I first fulfilled Josh you know I’ve got lots of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make lots of numerous financial investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I do not believe it due to the fact that 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 which were well should have and we utilized them carefully to survive during the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even contacted us to my politician friends Governor Senators they didn’t learn about it I imply that’s how you know that’s how false information is that there’s no info out there then a lot of people informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one understand about the staff member retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that 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 simply process process that’s all um and here there was turmoil due to the fact that keep in mind in the initial cares act you might not do both programs so if you had done PPP you could not do ERC in the original program and when they altered 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 in the past 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 business your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has stayed in business because 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have actually dealt 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 property real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Because of COVID-19 or whose gross receipts, company whose business is fully or partly suspended.
decrease by more than 50%.
1. The credit is available to all employers no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partially 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. When the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity 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 meaning of certifying incomes differs by whether an employer had, typically, more or less than.
100 employees in 2019.
Business that specialize in ERC filing support generally supply know-how and support to assist companies navigate the complicated procedure of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Do Employees Get Employee Retention Credit
Eligibility Assessment: These business will examine your company’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can claim, they can help determine.
Documentation and Estimation: ERC filing services will assist in collecting the needed documents, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit amount based on eligible salaries and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these business can examine your previous payroll records and financials to identify prospective opportunities for retroactive credits. They can assist you modify prior income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the necessary forms and documents on your behalf. This consists of finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have actually evolved over time. These companies stay upgraded with the current changes and ensure that your filings abide by the most existing guidelines. If the Internal revenue service requests extra information or conducts an audit associated to your ERC claim, they can likewise supply continuous support.
It is very important to research and vet any company providing ERC filing support to guarantee their reliability and knowledge. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax specialists who offer ERC submitting support.
Remember that while these companies can provide important assistance, it’s always a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate services to maintain and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit services, tax-exempt companies, and certain governmental entities. To certify, companies need to fulfill one of two requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As discussed previously, for 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts 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 percentage (approximately 70%) of certified wages paid to workers, including particular health insurance 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: At first, services that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they received a PPP loan. Nevertheless, the exact same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, enabling qualified employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers a chance for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, normally Type 941. If the credit surpasses the quantity of employment taxes owed, the excess can be reimbursed to the company.
It is very important to note that the ERC arrangements and eligibility requirements have evolved gradually. The best course of action is to talk to a tax professional or go to the official IRS website for the most updated and in-depth details relating to the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a service should meet one of the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, federal government entities and organizations that got a PPP loan might have restrictions on claiming the credit.
The procedure for declaring the ERC includes finishing the needed forms and including the credit on your work tax return (normally Form 941). The exact time it takes to process the credit can vary based on several factors, including the intricacy of your organization and the workload of the internal revenue service. It’s advised to talk to a tax expert for guidance particular to your circumstance.
There are a number of companies that can assist with the process of declaring the ERC. Some widely known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information provided here is based upon basic understanding and may not show the most current updates or changes to the ERC. It’s important to seek advice from a tax expert or go to the official internal revenue service site for the most precise and up-to-date details relating to eligibility, declaring procedures, and available support.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on incomes paid to all staff members whether they really worked or not. Simply put, even if the.
workers worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
permitted just for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply cash payments but also a part of the cost of company.
provided healthcare. Do Employees Get Employee Retention Credit
Companies can be right away compensated for the credit by reducing the quantity of payroll taxes they.