Lets talk first about Employee Retention Credits Eligibility :
Our team here what do these guys doing everybody in this space is helping teach individuals about ERC and uh always provide a beautiful breakfast and have people actually learn more about the program we ought to head to the room where we are able to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I mean you know if you simply begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I indicate think of how many real clients that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you have the ability to track it you understand when you
get this you know the check is opted for sure and that’s when they pay so they don’t pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the procedure has been finished and the number of you believe you’ve processed considering that you began 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 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly essential today the staff member retention credit which most of you have actually never ever become aware of I certainly hadn’t become aware of it till very recently and found out a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have workers in between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply 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 inform us all 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 very soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge distinction right there 2 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 all right go on sorry I simply need to make certain we got that point I mean that’s a big difference a loan versus money money I like money cash that’s what we’re talking about fine 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 stunning hard check in the mail where you get real 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 staff member retention credit that person 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 investors it’s for workers right you had to have actually owned an organization but it’s based upon you having W-2 staff members 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 right so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you return per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus because the mayhem 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 approximately 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 worker 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 minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s state 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 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 learn about this since appearance when I initially became aware of this when I first fulfilled Josh you understand I have actually got great deals of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which numerous suffered through the pandemic when I first heard about this I called BS I don’t think it due to the fact that I utilize the PPP we went through the cash 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 been worthy of and we used them carefully to stay alive throughout 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 friends Governor Senators they didn’t know about it I indicate that’s how you understand that’s how false information is that there’s no information out there then a bunch of people informed 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 no one understand about the worker retention credit you know what’s interesting you’re discussing 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 chaos due to the fact that remember in the original cares act you could not do both programs so if you had actually done PPP you might not do ERC in the initial 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 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 he or she’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually stayed in business given that 2009 and we have actually been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big big business customers have worked with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home property 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 staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
employer whose organization is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the comparable quarter in 2019. Once the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying salaries differs by whether an employer had, on average, more or less than.
100 workers in 2019.
Companies that focus on ERC filing help normally supply knowledge and support to assist companies browse the complicated procedure of declaring the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credits Eligibility
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based on elements such as your industry, profits, and operations. If you satisfy the requirements for the credit and identify the maximum credit quantity you can declare, they can help figure out.
Paperwork and Computation: ERC filing services will help in collecting the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit amount based on eligible earnings and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can evaluate your past payroll records and financials to recognize possible opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the essential forms and documents in your place. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually progressed in time. These companies stay updated with the most recent modifications and make sure that your filings abide by the most existing guidelines. If the Internal revenue service demands extra details or performs an audit associated to your ERC claim, they can also provide ongoing support.
It is essential to research and veterinarian any company offering ERC filing support to ensure their trustworthiness and proficiency. Search for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax professionals who use ERC filing assistance.
Remember that while these companies can provide valuable help, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and ensure precise 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 objective of the ERC is to encourage organizations to retain and pay their staff members 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 eligible companies, consisting of for-profit organizations, tax-exempt organizations, and particular governmental entities. To certify, employers must satisfy one of two requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As discussed previously, for 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of certified wages paid to staff members, including certain health insurance 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: Initially, businesses that received an Income Security Program (PPP) loan were not eligible 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. The very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, allowing qualified companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to modify prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, typically Type 941. If the credit surpasses the quantity of work taxes owed, the excess can be refunded to the company.
It is necessary to note that the ERC provisions and eligibility criteria have progressed gradually. The very best strategy is to speak with a tax expert or visit the official internal revenue service site for the most current and detailed details regarding the ERC, including any current legislative changes or updates.
To get approved for the ERC, an organization must meet among the following criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross invoices. For 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For example, government entities and businesses that got a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC includes finishing the essential forms and consisting of the credit on your employment tax return (typically Form 941). The exact time it requires to process the credit can differ based upon a number of factors, including the complexity of your business and the workload of the internal revenue service. It’s suggested to seek advice from a tax professional for guidance specific to your situation.
There are a number of companies that can assist with the procedure of claiming the ERC. Some well-known companies that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info supplied here is based upon basic knowledge and may not show the most recent updates or changes to the ERC. It is necessary to talk to a tax expert or check out the main internal revenue service site for the most precise and current details relating to eligibility, claiming treatments, and readily available support.
Less than 100. If the employer had 100 or less staff members on average 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.
employees worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 workers typically in 2019, then the credit is.
permitted just for earnings paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply money payments but also a part of the expense of company.
supplied healthcare. Employee Retention Credits Eligibility
Employers can be instantly compensated for the credit by reducing the amount of payroll taxes they.