Lets talk first about Innovation Refunds Careers :
Our team here what do these guys doing everyone in this space is helping teach individuals about ERC and uh constantly provide a beautiful breakfast and have individuals really discover the program we ought to head to the room where we are able to display a few of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I mean you understand if you just start to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I suggest consider the number of actual 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 consumer so that’s how you have the ability to track it you understand when you
get this you understand the check is chosen sure which’s when they pay so they do not pay anything up until they in fact get the money they do not pay bottom line Wonder trust anything till this letter is validated the check is on the method they transfer it into their checking account and they can truly trust Wonder trust that the procedure has actually been finished and how many you believe you have actually processed given that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you need you need experts 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly crucial today the employee retention credit which most of you have actually never ever heard of I certainly had not become aware of it up until very 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 staff members 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 hard this isn’t like PPP we simply call your bank supervisor and say offer me a loan it does not 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 become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing soon you got to find out everything about it let’s talk staff member 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 provided organizations 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 two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund all right go on sorry I just have to ensure we got that point I indicate that’s a big difference a loan versus money cash I like money cash that’s what we’re talking about 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 initial cares Act is the ERC and yes Kevin it is a beautiful tough check in the mail where you get actual money from the IRS all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual needed to be an employee so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you needed to have owned a company but it’s based on you having W-2 employees 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 appropriate so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my preferred part money just how much can you get back per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise 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 skyrocketed to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that the turmoil 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 as much as 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal of money it is now there’s a caution here the PPP cash would need to be reduced 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 workers and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s huge clearly now the huge concern is why does nobody understand about this because appearance when I first found out about this when I first met Josh you understand I’ve got great deals of investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not think it due to the fact that 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 sensibly to stay alive during the pandemic so when I heard about this I said nah it can’t hold true but when I dug around I even called to my political leader friends Governor Senators they didn’t learn about it I suggest that’s how you know that’s how false information is that there’s no info out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody know about the employee retention credit you know what’s interesting you’re talking about the banks Kevin since 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 huge 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 simply process process that’s all um and here there was turmoil due to the fact that keep in mind in the initial cares act you could refrain from doing 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 ever made it clear to anyone about how to.
do this does your CFO understand how to do this not truly she or he’s never ever done it previously 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 company your accountant no your accounting professional’s never done this prior to unless you have an account that went into this company and bottom line my firm Kevin has been in business considering that 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate customers have actually worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work opportunity 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 created to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
employer whose business is totally or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Availability.
1. The credit is readily available to all companies regardless of size consisting of tax exempt companies. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the employer has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether an employer had, usually, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing assistance usually provide proficiency and assistance to assist companies navigate the complex procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Innovation Refunds Careers
Eligibility Assessment: These companies will evaluate your business’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you satisfy the requirements for the credit and recognize the maximum credit amount you can declare, they can assist identify.
Documentation and Computation: ERC filing services will help in collecting the required documentation, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit quantity based upon eligible salaries and other certifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can evaluate your past payroll records and financials to recognize potential chances for retroactive credits. They can help you amend prior tax returns to claim these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the required types and documentation on your behalf. This includes completing Form 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have evolved with time. These companies stay updated with the latest changes and ensure that your filings adhere to the most present standards. If the IRS demands extra info or performs an audit related to your ERC claim, they can also supply continuous support.
It is essential to research and vet any business using ERC filing help to ensure their credibility and know-how. Search for established firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who provide ERC submitting assistance.
Bear in mind that while these business can provide important assistance, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified decisions and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit services, tax-exempt organizations, and certain governmental entities. To certify, employers should satisfy one of two criteria:.
Business operations were completely 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 substantial decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (up to 70%) of certified wages paid to workers, consisting of particular 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, companies that received an Income Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they received a PPP loan. The exact same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, enabling eligible companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive provision offers an opportunity for companies to change prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, typically Form 941. If the credit exceeds the amount of work taxes owed, the excess can be reimbursed to the company.
It is necessary to note that the ERC provisions and eligibility criteria have actually developed over time. The best course of action is to seek advice from a tax professional or check out the official IRS site for the most comprehensive and current information concerning the ERC, consisting of any recent legislative modifications or updates.
To receive the ERC, a company must fulfill among the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and companies that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes completing the required forms and consisting of the credit on your work income tax return (usually Kind 941). The exact time it requires to process the credit can differ based on several factors, consisting of the intricacy of your company and the work of the internal revenue service. It’s suggested to seek advice from a tax expert for guidance specific to your circumstance.
There are numerous business that can help with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some well-known companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and get in touch with these business directly to inquire about their charges and services.
Please note that the information supplied here is based on general understanding and might not reflect the most recent updates or modifications to the ERC. It is very important to consult with a tax professional or check out the main IRS website for the most accurate and updated information concerning eligibility, claiming treatments, and available help.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on salaries paid to all employees whether they really worked or not. Simply put, even if the.
staff members worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 workers on average in 2019.
allowed just for wages paid to workers who did not work during the calendar quarter.
In both cases, “incomes” includes not simply cash payments but likewise a part of the expense of employer.
supplied healthcare. Innovation Refunds Careers
Payment.
Employers can be right away compensated for the credit by reducing the amount of payroll taxes they.