Lets talk first about Employee Retention Credit Spreadsheet Excel :
Our group here what do these people doing everybody in this room is assisting teach individuals about ERC and uh always supply a gorgeous breakfast and have individuals actually learn more about the program we ought to head to the space where we have the ability to show some of the checks that we are getting for business and I want to see that what is this this is uh numerous millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I imply you know if you just begin to take a 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 mean it’s simply I imply 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 verified the numbers are validated and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you know when you
receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything up until they actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the method they deposit it into their checking account and they can really rely on Wonder trust that the procedure has actually been ended up and the number of you think you’ve processed considering that you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand 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 among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re speaking about something truly crucial today the staff member retention credit which most of you have actually never become aware of I definitely hadn’t become aware of it till very 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 workers between 5 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 Ideas 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 up your bank supervisor and say give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to tell us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very 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 throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used businesses three 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund okay go on sorry I just have to make sure we got that point I mean that’s a huge difference a loan versus money cash I like money money that’s what we’re speaking 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 initial cares Act is the ERC and yes Kevin it is a beautiful tough check in the mail where you get actual cash 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 worker 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 people on the cap table not for investors it’s for workers right you had to have actually owned a company but it’s based on you having W-2 workers 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 eligible 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 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part money how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the worker’s salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s income to an optimum of 7 thousand per quarter how did that occur 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 employees 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 then what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of money it is now there’s a caution here the PPP money would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment 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 big certainly now the huge concern is why does no one know about this because look when I initially found out about this when I initially met Josh you understand I have actually got great deals of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I do not believe it because 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 and that were well deserved and we utilized them wisely to stay alive during the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my politician buddies 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 told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s interesting 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 big banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was chaos since 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 altered 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 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 done it previously do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this before unless you have an account that entered into this service and bottom line my company Kevin has actually been in business because 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have worked with bottom line to recover other government programs we have actually 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 federal 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 as much as $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, company whose organization is fully or partially suspended.
decline by more than 50%.
Accessibility.
1. The credit is available to all companies despite size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is totally or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the similar quarter in 2019. Once the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion 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 is effective for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether a company had, usually, more or less than.
100 workers in 2019.
Business that specialize in ERC filing assistance generally provide expertise and assistance to help organizations browse the complicated process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Spreadsheet Excel
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based on elements such as your market, income, and operations. If you satisfy the requirements for the credit and recognize the maximum credit quantity you can claim, they can help figure out.
Documents and Estimation: ERC filing services will help in gathering the needed paperwork, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit quantity based upon qualified incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you change previous tax returns to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the necessary forms and documentation in your place. This consists of completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually developed over time. These business stay upgraded with the current modifications and guarantee that your filings adhere to the most existing guidelines. They can likewise supply continuous support if the IRS requests additional details or performs an audit related to your ERC claim.
It is necessary to research study and vet any company providing ERC filing assistance to guarantee their trustworthiness and proficiency. Search for established companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who use ERC filing support.
Keep in mind that while these companies can supply valuable support, it’s always an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to encourage businesses to retain and pay their workers throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, employers need to fulfill 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 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 substantial decline 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 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 incomes paid to workers, consisting of specific health plan 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: Initially, organizations that got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. The exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, allowing qualified employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for companies to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, typically Kind 941. If the credit surpasses 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 criteria have developed with time. The best course of action is to speak with a tax professional or check out the main internal revenue service website for the most detailed and up-to-date info relating to the ERC, including any current legal modifications or updates.
To receive the ERC, a company must satisfy among the following requirements:.
Business operations were totally or partly 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 receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt organizations, however there are some exceptions. For example, government entities and companies that received a PPP loan may have restrictions on claiming the credit.
The procedure for declaring the ERC involves completing the essential kinds and consisting of the credit on your employment tax return (usually Kind 941). The exact time it takes to process the credit can differ based upon numerous factors, consisting of the complexity of your service and the workload of the internal revenue service. It’s suggested to talk to a tax expert for guidance particular to your situation.
There are numerous companies that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these companies directly to ask about their services and fees.
Please note that the information provided here is based upon basic understanding and may not reflect the most recent updates or changes to the ERC. It is very important to seek advice from a tax professional or visit the official internal revenue service site for the most updated and precise details relating to eligibility, claiming procedures, and offered assistance.
Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on earnings paid to all workers whether they actually worked or not. To put it simply, even if the.
staff members 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 employees on average in 2019.
permitted only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” includes not just cash payments however also a portion of the cost of company.
provided healthcare. Employee Retention Credit Spreadsheet Excel
Payment.
Companies can be instantly reimbursed for the credit by lowering the quantity of payroll taxes they.