Lets talk first about Hurricane Michael Employee Retention Credit :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh constantly provide a lovely breakfast and have individuals actually discover the program we need to head to the room where we are able to show some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I imply you understand if you just start 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 suggest it’s simply I imply think of how many actual clients 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 validated 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 know when you
get 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 receive the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they transfer it into their bank account and they can truly rely on Wonder trust that the process has been completed and how many you believe you have actually processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing and that’s what you require you need specialists 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 Wonderful here you’re at my YouTube channel we’re discussing something really crucial today the staff member retention credit which the majority of you have actually never heard of I certainly had not become aware of it until extremely just recently and found out a lot about it due to the fact that this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers between five and five hundred so I have actually got the specialist 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 hard this isn’t like PPP we simply phone your bank manager 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 love this program it’s disappearing soon you got to find out everything about it let’s talk employee 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 offered organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody 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.
correct the cash cash payroll tax refund all right go on sorry I simply have to ensure we got that point I mean that’s a huge difference a loan versus cash cash I like cash money 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 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 internal revenue service all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member retention credit that person had to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have actually owned a company however it’s based upon you having W-2 workers in America not 10.99. As long as you had W-2 staff members 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 six months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you need to be on the W-2 throughout that period 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 computation in 2020 to be precise Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that 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 approximately five thousand Max and then what takes place 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 six thousand dollars per staff member that is since that’s a lot of money 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 2 you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere 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 employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the big concern is why does nobody know about this due to the fact that appearance when I first became aware of this when I initially met Josh you know I have actually got lots of investments in lots of companies I’m a major supporter for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which numerous suffered through the pandemic when I initially heard about this I called BS I don’t think it because I utilize the PPP we went through the cash 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 deserved and we used them carefully to survive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my politician buddies Guv Senators they didn’t know about it I mean 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 because you took the PPP likewise not true so let’s ask Josh why does no one learn about the employee retention credit you know what’s interesting you’re discussing the banks Kevin since 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was chaos since remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the original program and when they altered 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 federal government never made it clear to anybody about how to.
do this does your CFO understand how to do this not truly he or she’s never ever done it in the past 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 accounting professional’s never ever done this prior to unless you have an account that entered into this service and bottom line my firm Kevin has been in business because 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate customers have worked with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other federal 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 incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose organization is totally or partially suspended.
decline by more than 50%.
Availability.
1. The credit is readily available to all employers regardless of size consisting of 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 qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. Once the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of certifying incomes differs by whether an employer had, usually, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing assistance generally supply expertise and assistance to assist organizations navigate the complex process of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Hurricane Michael Employee Retention Credit
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can claim, they can assist determine.
Documentation and Estimation: ERC filing services will assist in collecting the required documentation, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit amount based on eligible salaries and other certifying expenditures.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can review your past payroll records and financials to identify potential opportunities for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Help: Business specializing in ERC filings will prepare and send the needed kinds and documents on your behalf. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually evolved in time. These business remain upgraded with the latest changes and make sure that your filings adhere to the most existing standards. If the IRS requests additional details or conducts an audit related to your ERC claim, they can also offer ongoing assistance.
It is necessary to research and veterinarian any company offering ERC filing assistance to ensure their trustworthiness and competence. Search for established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who use ERC filing assistance.
Keep in mind that while these companies can offer valuable assistance, it’s constantly a good concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions 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 procedures. The goal of the ERC is to motivate services to maintain and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit services, tax-exempt companies, and specific governmental entities. To qualify, employers need to satisfy one of two criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As mentioned previously, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of certified incomes paid to employees, including specific health plan expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they received a PPP loan. However, the exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and enhanced, enabling eligible companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for organizations to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be reimbursed to the company.
It is necessary to keep in mind that the ERC arrangements and eligibility criteria have actually progressed over time. The very best course of action is to consult with a tax expert or visit the main IRS site for the most detailed and up-to-date information regarding the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, a company needs to satisfy one of the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and services that received a PPP loan may have constraints on declaring the credit.
The process for declaring the ERC includes finishing the required forms and including the credit on your employment tax return (usually Type 941). The exact time it requires to process the credit can differ based upon numerous elements, consisting of the complexity of your service and the work of the IRS. It’s suggested to seek advice from a tax expert for assistance particular to your scenario.
There are a number of companies that can assist with the process of claiming the ERC. Some widely known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based on general knowledge and might not reflect the most recent updates or modifications to the ERC. It is very important to seek advice from a tax professional or go to the main IRS website for the most up-to-date and precise details relating to eligibility, claiming procedures, and offered support.
Less than 100. If the employer had 100 or less staff members usually in 2019, then the credit is based.
on incomes paid to all employees whether they in fact 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 staff members on average in 2019, then the credit is.
permitted just for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply cash payments but also a part of the cost of company.
provided health care. Hurricane Michael Employee Retention Credit
Payment.
Employers can be instantly compensated for the credit by lowering the quantity of payroll taxes they.