Lets talk first about Examples Of Employee Retention Credit :
Our group here what do these men doing everybody in this space is assisting teach individuals about ERC and uh always offer a stunning breakfast and have individuals really learn more about the program we need to head to the room where we are able to display a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I mean you understand if you just begin to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I indicate think of the number of real 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 confirmed 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 understand when you
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything till they really receive the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can truly rely on Wonder trust that the process has actually been finished and the number of you think you’ve processed because 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 and that’s what you need 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 talking about something truly crucial today the worker retention credit which most of you have never ever become aware of I definitely had not become aware of it up until extremely just recently and learned a lot about it since this is probably the lowest cost of capital for any small company 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 Concepts 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 phone your bank supervisor and say provide 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 representative for this I like this program it’s disappearing very soon you got to learn all about it let’s talk worker 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 used organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund fine go on sorry I simply need to make certain we got that point I mean that’s a big distinction a loan versus cash money I like cash cash that’s what we’re talking about all right 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 lovely difficult check in the mail where you get actual cash from the IRS all right so let’s talk about how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that person had to be a staff member 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 needed to have owned an organization but it’s based upon you having W-2 workers 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 appropriate so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s determined you have to be on the W-2 throughout that period 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 computation in 2020 to be exact Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to an optimum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus because the chaos of the pandemic so they wanted to even get more to keep those workers on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as five thousand Max and then what happens 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be lowered 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 on average Kevin is if you took PPP money somewhere around ten thousand dollars a person so let’s say 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 clearly now the huge concern is why does nobody know about this because appearance when I first heard about this when I first met Josh you know I’ve got great deals of investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make numerous lots of financial investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I do not believe it since I use 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 which were well deserved and we utilized them sensibly to survive during the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even called to my politician buddies 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 lot of people informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one learn about the employee retention credit you know 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 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 procedure that’s all um and here there was turmoil because remember in the original cares act you could not do both programs so if you had actually done PPP you could not do ERC in the original program and when they altered 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 anybody about how to.
do this does your CFO know 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 business your accountant no your accounting professional’s never done this prior to unless you have an account that entered into this company and bottom line my firm Kevin has been in business because 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
employer whose organization is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
only 2 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 satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. When the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount 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 meaning of certifying wages varies by whether an employer had, typically, basically than.
100 employees in 2019.
Companies that concentrate on ERC filing assistance generally provide know-how and support to help services browse the complex process of claiming the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Examples Of Employee Retention Credit
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based on elements such as your industry, earnings, and operations. They can assist identify if you fulfill the requirements for the credit and identify the optimum credit quantity you can declare.
Documentation and Computation: ERC filing services will help in gathering the needed documents, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit quantity based upon eligible salaries and other qualifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can review your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you amend previous tax returns to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the necessary kinds and paperwork on your behalf. This includes completing Type 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have actually evolved with time. These business remain updated with the most recent changes and guarantee that your filings abide by the most current standards. They can likewise provide ongoing assistance if the internal revenue service requests extra info or performs an audit related to your ERC claim.
It is necessary to research and veterinarian any company providing ERC filing assistance to guarantee their reliability and proficiency. Search for established companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who provide ERC filing support.
Keep in mind that while these companies can offer important help, it’s constantly a good concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and ensure 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 services to retain and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit services, tax-exempt organizations, and specific governmental entities. To qualify, employers need to meet one of two criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As discussed previously, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline 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 quantity amounts to a portion (as much as 70%) of qualified incomes paid to employees, consisting of certain health plan costs. 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 got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they received a PPP loan. The exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, enabling eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers an opportunity for organizations to change prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, usually Form 941. The excess can be refunded to the company if the credit goes beyond the amount of work taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility criteria have actually developed in time. The best strategy is to talk to a tax expert or go to the main internal revenue service website for the most in-depth and current information concerning the ERC, including any current legislative changes or updates.
To qualify for the ERC, a service must fulfill among the following requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt companies, however there are some exceptions. Federal government entities and businesses that received a PPP loan may have restrictions on claiming the credit.
The procedure for declaring the ERC includes completing the required forms and consisting of the credit on your work tax return (usually Form 941). The exact time it requires to process the credit can differ based upon a number of elements, consisting of the intricacy of your business and the work of the IRS. It’s suggested to seek advice from a tax professional for guidance specific to your scenario.
There are a number of companies that can aid with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some widely known companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these business directly to inquire about their services and costs.
Please keep in mind that the info provided here is based upon general understanding and might not reflect the most recent updates or modifications to the ERC. It’s important to talk to a tax professional or check out the main internal revenue service website for the most precise and updated information regarding eligibility, declaring treatments, and offered help.
Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on earnings paid to all staff members whether they really worked or not. In other words, even if the.
workers worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for incomes paid to workers who did not work throughout the calendar quarter.
In both cases, “salaries” includes not simply cash payments but also a portion of the expense of company.
supplied healthcare. Examples Of Employee Retention Credit
Employers can be immediately reimbursed for the credit by reducing the amount of payroll taxes they.