Lets talk first about Innovation Refunds Irs :
Our team here what do these guys doing everybody in this room is assisting teach people about ERC and uh constantly provide a stunning breakfast and have people really find out about the program we need to head to the room where we are able to show 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 countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I indicate you know if you simply begin to take a look at a few 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 imply think about the number of actual 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 internal revenue service heading to the customer so that’s how you have the ability to track it you know when you
get this you know the check is chosen sure and that’s when they pay so they don’t pay anything until they really get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their checking account and they can really trust Wonder trust that the process has been completed and how many you believe you have actually processed because you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’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 Terrific here you’re at my YouTube channel we’re speaking about something really important today the worker retention credit which the majority of you have actually never heard of I certainly hadn’t heard of it until extremely just recently and discovered a lot about it since this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 contact your bank manager and state provide me a loan it doesn’t 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’ve ended up being yes the Ambassador and paid spokesperson for this I love 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 created the cares Act and the cares act used businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone 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.
remedy the money cash payroll tax refund all right go on sorry I just have to make sure we got that point I indicate that’s a big difference a loan versus cash money I like cash cash that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a lovely tough check in the mail where you get actual cash from the IRS all right so let’s talk about how it works since 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 people on the cap table not for investors it’s for staff members right you had to have actually owned a business however it’s based upon you having W-2 workers 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 six months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my preferred part cash how much can you get back per worker 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 wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that take place um they just altered the rules in.
2021 versus because the turmoil of the pandemic so they wanted to even get more to keep those employees 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 5 thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP money 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 no one learn about this due to the fact that appearance when I initially heard about this when I first met Josh you know I’ve got lots of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I first found out about this I called BS I don’t think it since I use the PPP we went through the money 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 been worthy of and we utilized them carefully to stay alive throughout the pandemic so when I became aware of 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 suggest that’s how you know that’s how misinformation is that there’s no information out there then a lot of individuals 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 nobody understand about the worker retention credit you understand what’s intriguing you’re speaking about the banks Kevin because 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 because keep in mind in the original cares act you could not do both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the federal government never made it clear to anyone about how to.
do this does your CFO know how to do this not really he or she’s never ever done it before do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this prior to unless you have an account that went into this organization and bottom line my company Kevin has stayed in business given that 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have worked with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness 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 developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
company whose organization is completely or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Accessibility.
1. The credit is offered to all employers regardless of size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
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 company’s company is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying salaries varies by whether an employer had, on average, basically than.
100 workers in 2019.
Business that specialize in ERC filing assistance generally offer expertise and assistance to help organizations browse the complex procedure of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Innovation Refunds Irs
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based on factors such as your market, profits, and operations. If you satisfy the requirements for the credit and identify the optimum credit amount you can declare, they can assist identify.
Paperwork and Calculation: ERC filing services will help in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will also assist determine the credit quantity based upon qualified wages and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these companies can evaluate your past payroll records and financials to identify prospective chances for retroactive credits. They can assist you change previous tax returns to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the needed types and paperwork in your place. This consists of completing Kind 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have actually developed in time. These companies stay updated with the current modifications and make sure that your filings abide by the most present standards. If the IRS demands extra info or conducts an audit related to your ERC claim, they can likewise supply continuous assistance.
It’s important to research and vet any company providing ERC filing support to ensure their credibility and competence. Look for recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who offer ERC submitting assistance.
Bear in mind that while these business can offer important assistance, it’s always an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions 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 measures. The goal of the ERC is to motivate businesses to maintain and pay their workers during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, including for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, employers must satisfy one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross invoices. As mentioned previously, for 2021, a significant decrease is defined 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% decline in gross invoices compared to the same quarter in 2019, or a 20% decline 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 quantity amounts to a portion (as much as 70%) of certified wages paid to employees, including certain health insurance costs. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be utilized to declare 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 certified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies a chance 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 work tax returns, typically Kind 941. The excess can be refunded to the employer if the credit surpasses the amount of employment taxes owed.
It is very important to keep in mind that the ERC provisions and eligibility requirements have progressed over time. The very best course of action is to seek advice from a tax professional or go to the main internal revenue service website for the most detailed and up-to-date details concerning the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a company needs to fulfill one of the following requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease 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 substantial decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and organizations that got a PPP loan may have limitations on claiming the credit.
The process for claiming the ERC includes finishing the needed types and including the credit on your work income tax return (generally Kind 941). The exact time it takes to process the credit can differ based upon numerous elements, consisting of the intricacy of your organization and the workload of the internal revenue service. It’s suggested to talk to a tax expert for assistance particular to your circumstance.
There are numerous business that can aid with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some well-known companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these business straight to ask about their services and charges.
Please keep in mind that the information provided here is based on general understanding and might not reflect the most recent updates or changes to the ERC. It is essential to consult with a tax expert or visit the official IRS website for the most updated and precise info relating to eligibility, declaring procedures, and offered support.
Less than 100. If the company had 100 or fewer employees on average in 2019, then the credit is based.
on incomes paid to all staff members whether they actually worked or not. Simply put, even if the.
staff members worked full-time and got paid for full time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
permitted just for wages paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” includes not just money payments however also a portion of the expense of employer.
provided health care. Innovation Refunds Irs
Payment.
Companies can be immediately compensated for the credit by lowering the quantity of payroll taxes they.