Lets talk first about Employee Retention Credit 2021 Supply Chain Disruption :
Our team here what do these people doing everybody in this space is helping teach people about ERC and uh constantly provide a gorgeous breakfast and have people truly learn about the program we ought to head to the space where we have the ability to display a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of 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 method I indicate you know if you simply begin 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 suggest think about 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 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 gone for sure and that’s when they pay so they do not pay anything up until they in fact get the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they transfer it into their savings account and they can truly trust Wonder trust that the procedure has actually been ended up and the number of you think you have actually processed since you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you need you require experts 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 discussing something actually important today the staff member retention credit which most of you have actually never become aware 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 five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest 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 supervisor and state provide me a loan it doesn’t 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 going away soon you got to learn everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered companies 3 opportunities 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 cash money payroll tax refund alright go on sorry I simply need to make certain we got that point I suggest that’s a big difference a loan versus money money I like cash cash that’s what we’re speaking about okay 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 gorgeous difficult 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 person had to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have owned an organization however it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and 3 of 2021. all right 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 how much can you return per worker that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to an optimum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wanted 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 five thousand Max and then what takes place 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 6 thousand dollars per staff member that is because that’s a great deal of cash 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 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge certainly now the huge question is why does nobody learn about this because appearance when I initially heard about this when I first fulfilled Josh you know I’ve got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it because I use the PPP we went through the money center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we used them carefully to stay alive during the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even contacted us to my politician good friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of people told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one know about the employee retention credit you understand what’s intriguing you’re speaking about the banks Kevin because in the PPP loan process the federal government made it extremely 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 procedure procedure that’s all um and here there was mayhem because keep in mind in the original cares act you might refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this before unless you have an account that entered into this service and bottom line my firm Kevin has actually stayed in business because 2009 and we have actually 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 huge big business customers have actually worked with bottom line to recover other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Since of COVID-19 or whose gross receipts, company whose organization is totally or partly suspended.
decline by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings varies by whether an employer had, usually, basically than.
100 workers in 2019.
Business that concentrate on ERC filing support usually supply expertise and assistance to help organizations browse the intricate process of claiming the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit 2021 Supply Chain Disruption
Eligibility Assessment: These companies will evaluate your organization’s eligibility for the ERC based upon aspects such as your industry, revenue, and operations. They can assist identify if you satisfy the requirements for the credit and recognize the maximum credit quantity you can claim.
Documentation and Estimation: ERC filing services will help in collecting the necessary documents, such as payroll records and financial declarations, to support your claim. They will also help compute the credit amount based on eligible wages and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to determine prospective chances for retroactive credits. They can help you change prior tax returns to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the essential types and paperwork on your behalf. This consists of finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have evolved gradually. These business remain upgraded with the latest changes and guarantee that your filings comply with the most existing guidelines. They can also supply continuous assistance if the internal revenue service demands additional info or conducts an audit related to your ERC claim.
It is essential to research study and veterinarian any company providing ERC filing support to ensure their credibility and expertise. Search for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax experts who provide ERC submitting assistance.
Remember that while these business can supply valuable support, it’s always a good idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage services to keep and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit services, tax-exempt organizations, and certain governmental entities. To certify, companies must fulfill one of two requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a significant decrease is specified as a 20% decline 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 invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices 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 quantity amounts to a percentage (approximately 70%) of qualified earnings paid to employees, including 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, companies that got 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. However, the very same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, enabling eligible employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment tax returns, typically Type 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the company.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have developed gradually. The very best course of action is to seek advice from a tax professional or go to the official IRS website for the most detailed and current information relating to the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, a business needs to satisfy among the following criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a significant decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified 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 readily available to services of all sizes, including tax-exempt organizations, but there are some exceptions. For example, government entities and companies that received a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC involves finishing the necessary forms and consisting of the credit on your work tax return (typically Kind 941). The exact time it takes to process the credit can differ based on a number of aspects, consisting of the intricacy of your company and the workload of the IRS. It’s suggested to speak with a tax expert for assistance particular to your circumstance.
There are several companies that can aid with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some popular business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these business directly to inquire about their charges and services.
Please note that the details offered here is based on basic understanding and may not show the most current updates or changes to the ERC. It is essential to seek advice from a tax professional or check out the main internal revenue service website for the most up-to-date and accurate details relating to eligibility, claiming procedures, and available support.
Less than 100. If the employer had 100 or less employees typically in 2019, then the credit is based.
on incomes paid to all workers whether they really worked or not. In other words, even if the.
staff members worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
enabled just for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply money payments but likewise a portion of the cost of company.
supplied healthcare. Employee Retention Credit 2021 Supply Chain Disruption
Companies can be right away reimbursed for the credit by lowering the quantity of payroll taxes they.