Lets talk first about Employee Retention Credit And Form 7200 Advances :
Our group here what do these guys doing everybody in this room is helping teach people about ERC and uh always supply a beautiful breakfast and have people really find out about the program we need 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 wish to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I imply you know if you just 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 suggest think about the number of real customers 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 verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
receive this you understand the check is opted for sure and that’s when they pay so they don’t pay anything until they really receive the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they transfer it into their savings account and they can really trust Wonder trust that the procedure has actually been ended up and how many you think you have actually processed since you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you require 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 Terrific here you’re at my YouTube channel we’re discussing something actually important today the employee retention credit which the majority of you have never ever become aware of I definitely hadn’t become aware of it until extremely just recently and discovered a lot about it because this is most likely the lowest expense of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the creator 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 contact your bank supervisor and say give 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 have actually become yes the Ambassador and paid representative 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 just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided businesses 3 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 two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund fine go on sorry I just need to make sure we got that point I imply that’s a huge difference a loan versus cash money I like money 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 gorgeous difficult check in the mail where you get actual cash from the IRS 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 staff member retention credit that person had to be a staff member 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 staff members right you had to have owned an organization but it’s based upon you having W-2 employees in America not 10.99. As long as you had W-2 employees 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 first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred 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 staff member’s wage to an optimum of 5 thousand dollars per worker 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 happen um they simply altered the rules in.
2021 versus because the turmoil 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 as much as 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create 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 since that’s a great deal of cash it is now there’s a caveat here the PPP money would have to be lowered 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 usually Kevin is if you took PPP cash somewhere around ten thousand dollars a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial clearly now the big question is why does nobody learn about this due to the fact that appearance when I first found out about this when I first satisfied Josh you know I’ve got great deals of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make lots of lots of investments in business owners of which numerous suffered through the pandemic when I first heard about this I called BS I don’t think it since 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 sensibly to stay alive throughout the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t understand about it I imply that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one learn about the employee retention credit you understand 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 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 process that’s all um and here there was turmoil since keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you could not do 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 government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never done it before 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 accountant no your accountant’s never ever done this prior to unless you have an account that went into this organization and bottom line my firm Kevin has been in business because 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge big corporate clients have worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Since of COVID-19 or whose gross invoices, employer whose business is fully or partially suspended.
decline by more than 50%.
1. The credit is offered to all companies despite size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. Once the.
company’s gross invoices go above 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 total.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of qualifying salaries differs by whether an employer had, on average, more or less than.
100 employees in 2019.
Companies that concentrate on ERC filing help usually offer knowledge and support to assist businesses navigate the complex procedure of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit And Form 7200 Advances
Eligibility Evaluation: These companies will assess your service’s eligibility for the ERC based upon aspects such as your market, earnings, and operations. They can assist figure out if you satisfy the requirements for the credit and identify the optimum credit quantity you can claim.
Documents and Estimation: ERC filing services will assist in collecting the essential documents, 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 expenses.
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 determine potential chances for retroactive credits. They can assist you modify prior income tax return to claim these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the needed kinds and documents on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually progressed with time. These business remain upgraded with the current modifications and make sure that your filings comply with the most current standards. They can likewise supply ongoing assistance if the IRS requests extra info or performs an audit related to your ERC claim.
It is necessary to research and veterinarian any business providing ERC filing assistance to guarantee their trustworthiness and competence. Search for established companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who provide ERC submitting support.
Keep in mind that while these business can supply important support, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure precise 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 motivate services to keep and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, companies need to satisfy one of two criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline 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 is equal to a percentage (up to 70%) of certified wages paid to staff members, consisting of certain health insurance expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to change prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, usually Form 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the employer.
It’s important to note that the ERC arrangements and eligibility requirements have actually developed in time. The very best course of action is to talk to a tax expert or visit the main internal revenue service site for the most in-depth and up-to-date information concerning the ERC, including any recent legislative changes or updates.
To qualify for the ERC, a company should fulfill among the following requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. 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 defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have restrictions on claiming the credit.
The procedure for declaring the ERC involves finishing the essential types and including the credit on your work income tax return (normally Type 941). The exact time it takes to process the credit can vary based upon numerous elements, consisting of the intricacy of your business and the work of the IRS. It’s recommended to speak with a tax expert for assistance particular to your situation.
There are numerous business that can help with the procedure of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some popular companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these companies directly to ask about their fees and services.
Please note that the information offered here is based upon general knowledge and might not reflect the most recent updates or modifications to the ERC. It is essential to seek advice from a tax expert or check out the official internal revenue service website for the most current and precise info concerning eligibility, claiming treatments, and offered support.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on wages paid to all workers whether they in fact worked or not. Simply put, even if the.
employees worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
allowed only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just money payments however also a portion of the cost of company.
provided health care. Employee Retention Credit And Form 7200 Advances
Employers can be instantly compensated for the credit by minimizing the amount of payroll taxes they.