Lets talk first about Employee Retention Credit Refund Status :
Our team here what do these guys doing everybody in this space is helping teach people about ERC and uh always supply a beautiful breakfast and have people actually find out about the program we ought to 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 numerous millions of dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I indicate you understand if you just begin to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I imply consider the number of actual 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 confirmed and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you have the ability to track it you understand when you
get this you understand the check is gone for sure and that’s when they pay so they do not pay anything till they actually get the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their checking account and they can truly trust Wonder trust that the process has been completed and the number of you believe you have actually processed because you started this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you require you require professionals 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 really crucial today the staff member retention credit which most of you have actually never heard of I definitely hadn’t become aware of it till really recently and found out a lot about it due to the fact that this is probably the lowest cost of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just call up 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 inform us all about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to discover all 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 companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference 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 okay go on sorry I simply need to ensure we got that point I mean that’s a huge distinction a loan versus money 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 original cares Act is the ERC and yes Kevin it is a stunning tough check in the mail where you get actual money from the internal revenue service all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s staff member retention credit that individual needed 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 workers right you needed to have owned a company however it’s based upon you having W-2 staff members 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 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 2 three and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s salary to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to an optimum of seven thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the turmoil 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 as much as 5 thousand Max and after that 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 six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caution here the PPP cash would need to be minimized 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 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 workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the huge concern is why does no one understand about this due to the fact that look when I initially found out about this when I initially satisfied Josh you know I’ve got lots of investments in lots of companies I’m a major advocate for entrepreneurship in America and make many numerous financial investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not believe 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 which were well should have and we utilized them carefully to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even contacted us to my political leader pals Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how misinformation is that there’s no details out there then a lot of individuals informed me well you can’t get it since 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 fascinating you’re talking 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 just process process that’s all um and here there was turmoil since remember in the initial cares act you might refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that 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 truly 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 accountant’s never ever done this before unless you have an account that went into this company and bottom line my company Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have actually worked with bottom line to recuperate other government programs we have actually 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 government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross receipts, company whose business is completely or partly suspended.
decline by more than 50%.
Schedule.
1. The credit is available to all employers despite size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying earnings differs by whether a company had, usually, basically than.
100 employees in 2019.
Companies that specialize in ERC filing support typically provide competence and assistance to assist services browse the complex process of declaring the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Refund Status
Eligibility Assessment: These business will evaluate your organization’s eligibility for the ERC based upon elements such as your market, profits, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can claim, they can help determine.
Paperwork and Calculation: ERC filing services will assist in collecting the necessary documents, such as payroll records and monetary statements, to support your claim. They will likewise assist calculate the credit quantity based upon eligible wages and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can examine your previous payroll records and financials to identify potential chances for retroactive credits. They can help you modify prior income tax return to claim these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the essential types and documents in your place. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually evolved gradually. These companies stay upgraded with the current modifications and ensure that your filings comply with the most present standards. They can also offer continuous assistance if the internal revenue service demands additional details or conducts an audit related to your ERC claim.
It is essential to research and vet any business using ERC filing support to ensure their credibility and know-how. Search for established companies with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who use ERC filing support.
Keep in mind that while these companies can provide important assistance, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure precise filings.
The Employee 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 companies to retain and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, employers should satisfy one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross receipts. As discussed earlier, 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 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 qualified salaries paid to employees, consisting of particular health plan expenses. 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, organizations that received an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to declare the ERC even if they received a PPP loan. The very same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, permitting eligible companies to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for businesses to modify prior-year tax returns and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work tax returns, typically Kind 941. If the credit goes beyond the quantity of work taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC provisions and eligibility requirements have actually developed with time. The very best course of action is to speak with a tax professional or visit the main internal revenue service website for the most current and in-depth information regarding the ERC, including any recent legal changes or updates.
To get approved for the ERC, a business needs to meet one of the following requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a substantial decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For instance, government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The process for declaring the ERC involves completing the essential forms and including the credit on your work income tax return (usually Form 941). The exact time it takes to process the credit can differ based upon a number of elements, including the intricacy of your organization and the workload of the IRS. It’s advised to speak with a tax professional for assistance particular to your situation.
There are numerous companies that can help with the process of claiming the ERC. Some widely known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on basic understanding and may not reflect the most recent updates or modifications to the ERC. It’s important to consult with a tax professional or go to the main internal revenue service site for the most accurate and updated information concerning eligibility, declaring procedures, and offered help.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on salaries paid to all workers whether they really worked or not. To put it simply, even if the.
workers worked full time and made money for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 staff members typically in 2019, then the credit is.
permitted just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not just cash payments however also a portion of the cost of employer.
offered healthcare. Employee Retention Credit Refund Status
Payment.
Companies can be instantly repaid for the credit by minimizing the quantity of payroll taxes they.