Lets talk first about How To Claim Retroactive Employee Retention Credit :
Our group here what do these people doing everybody in this room is assisting teach people about ERC and uh constantly provide a beautiful breakfast and have people truly learn about the program we need to head to the space where we are able to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the method I indicate you understand if you simply 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 suggest it’s simply I imply think of how many real customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are validated and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you understand when you
receive this you understand the check is gone for sure and that’s when they pay so they do not pay anything up until they in fact 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 bank account and they can genuinely rely on Wonder trust that the procedure has been finished and how many you think you’ve processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you need you need 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 actually important today the worker retention credit which the majority of you have never become aware of I certainly hadn’t heard of it till very just recently and found out a lot about it since this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members between 5 and five hundred so I’ve 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 simply call up your bank manager and state 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 spokesperson for this I love this program it’s disappearing soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered organizations 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 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I simply have to make certain we got that point I indicate that’s a huge difference a loan versus money money I like money money that’s what we’re discussing okay 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 gorgeous tough check in the mail where you get real cash from the IRS all right so let’s talk about how it works since it seems like to me if it’s a if it’s employee 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 individuals on the cap table not for shareholders it’s for employees right you had to have actually owned an organization but it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 employees and you paid federal payroll taxes that’s why you would be qualified so you need 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 proper so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and three of 2021. fine so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you get back per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s wage to a maximum of seven thousand per quarter how did that happen um they just altered the rules in.
2021 versus because the chaos 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 after that what occurs 21 000 Max in 2021 oh that’s how you develop twenty six 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 lot of money 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 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 say hypothetically you owned a dining establishment in New york city 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 internal revenue service so it’s big undoubtedly now the huge concern is why does nobody know about this due to the fact that appearance when I initially found out about this when I first fulfilled Josh you know I have actually got lots of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make lots of numerous investments in business owners of which lots of suffered through the pandemic when I initially heard about this I called BS I do not think it due to the fact that I utilize the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well been worthy of and we used them sensibly to survive during the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even called to my politician friends Governor Senators they didn’t learn about it I mean that’s how you know that’s how false information is that there’s no information out there then a lot 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 know about the employee retention credit you know what’s intriguing you’re discussing the banks Kevin because in the PPP loan procedure the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big banks in our nation 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 mayhem due to the fact that remember in the initial cares act you might not do both programs so if you had actually done PPP you could refrain from doing ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the government never 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 do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accountant’s never done this before unless you have an account that went into this business and bottom line my company Kevin has stayed in business because 2009 and we’ve been dealing with the federal government and the state 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 recover other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose service is fully or partly suspended.
decrease by more than 50%.
1. The credit is available to all employers regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed 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.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of qualifying salaries varies by whether an employer had, typically, basically than.
100 workers in 2019.
Companies that specialize in ERC filing assistance typically offer know-how and support to assist companies browse the complex process of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? How To Claim Retroactive Employee Retention Credit
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based on factors such as your market, income, and operations. If you satisfy the requirements for the credit and determine the optimum credit quantity you can declare, they can help figure out.
Documentation and Estimation: ERC filing services will assist in gathering the needed documentation, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit amount based on qualified salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to identify possible chances for retroactive credits. They can assist you change previous tax returns to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the required kinds and documents in your place. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have actually developed over time. These companies remain upgraded with the most recent changes and guarantee that your filings adhere to the most present standards. They can also offer ongoing assistance if the IRS demands additional information or carries out an audit related to your ERC claim.
It is necessary to research study and veterinarian any business using ERC filing assistance to guarantee their trustworthiness and competence. Search for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who offer ERC submitting support.
Bear in mind that while these companies can supply important assistance, it’s always a great concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified choices and make sure accurate 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 objective of the ERC is to motivate organizations to retain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, companies must fulfill one of two requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As discussed earlier, for 2021, a considerable decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of qualified salaries paid to employees, including certain health plan expenditures. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got a Paycheck Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they received a PPP loan. However, the same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and enhanced, permitting eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for organizations to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work income tax return, typically Form 941. The excess can be reimbursed to the company if the credit goes beyond the amount of employment taxes owed.
It is very important to note that the ERC arrangements and eligibility requirements have actually evolved gradually. The best course of action is to speak with a tax professional or check out the main IRS website for the most detailed and up-to-date information regarding the ERC, including any current legal modifications or updates.
To receive the ERC, a service needs to satisfy among the following criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt companies, but there are some exceptions. For instance, federal government entities and services that got a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC includes completing the necessary forms and consisting of the credit on your employment tax return (generally Form 941). The exact time it requires to process the credit can differ based on numerous factors, including the intricacy of your organization and the workload of the IRS. It’s suggested to speak with a tax expert for assistance specific to your situation.
There are numerous business that can help with the process of claiming the ERC. Some popular business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based upon general understanding and might not reflect the most current updates or changes to the ERC. It’s important to speak with a tax expert or check out the main IRS site for the most precise and updated details concerning eligibility, claiming treatments, and readily available support.
Less than 100. If the company had 100 or fewer employees typically in 2019, then the credit is based.
on salaries paid to all employees whether they in fact worked or not. Simply put, even if the.
workers worked full-time and earned 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.
permitted only for incomes paid to employees who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments but also a part of the cost of company.
supplied health care. How To Claim Retroactive Employee Retention Credit
Employers can be immediately reimbursed for the credit by reducing the amount of payroll taxes they.