Lets talk first about Innovation Refunds Revenue :
Our group here what do these men doing everyone in this space is helping teach people about ERC and uh constantly supply a stunning breakfast and have individuals actually learn more about the program we should 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 numerous countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I suggest you know if you just begin 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 indicate it’s just I mean consider how many real clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed 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’re able to track it you understand when you
get this you know the check is chosen sure and that’s when they pay so they do not pay anything up until they in fact get the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they deposit it into their savings account and they can genuinely rely on Wonder trust that the procedure has actually been ended up and how many you think you have actually 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 need experts 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 Fantastic here you’re at my YouTube channel we’re speaking about something actually important today the worker retention credit which the majority of you have never ever become aware of I certainly hadn’t heard of it till extremely just recently and discovered a lot about it due to the fact that this is probably the lowest cost of capital for any small business anywhere
anytime if you have workers in between 5 and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we just call your bank manager and state give 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 become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used organizations three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund fine go on sorry I just have to make sure we got that point I mean that’s a big difference a loan versus money money I like cash money 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 real cash from the internal revenue service all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s staff member retention credit that person 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 investors it’s for staff members right you had to have owned a company however it’s based on you having W-2 staff members 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 three and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my preferred part money just how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s income to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to an optimum of seven 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 5 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 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot 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 two you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment 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 IRS so it’s huge clearly now the huge concern is why does nobody know about this since look when I first became aware of this when I first satisfied Josh you understand I have actually got lots of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I first heard 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 really easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we used them wisely to stay alive throughout 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 politician friends Guv Senators they didn’t learn about it I suggest that’s how you know 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 since you took the PPP also not true so let’s ask Josh why does nobody understand about the employee retention credit you know what’s interesting you’re discussing the banks Kevin due to the fact that 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 country and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was chaos because remember in the original cares act you might not do both programs so if you had done PPP you might not do ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC because 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 actually she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never done this before unless you have an account that entered into this organization and bottom line my company Kevin has been in business given that 2009 and we’ve been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have dealt with bottom line to recuperate other federal government programs we’ve done sales tax and use 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 employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose company is fully or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Accessibility.
1. The credit is readily available to all companies no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages varies by whether a company had, typically, more or less than.
100 staff members in 2019.
Business that focus on ERC filing support normally provide know-how and assistance to assist companies navigate the complicated procedure of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Revenue
Eligibility Evaluation: These companies will evaluate your organization’s eligibility for the ERC based on elements such as your market, earnings, and operations. They can assist identify if you satisfy the requirements for the credit and recognize the maximum credit amount you can declare.
Documentation and Computation: ERC filing services will assist in gathering the required documents, such as payroll records and monetary declarations, to support your claim. They will also help compute the credit quantity based upon eligible incomes and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can review your past payroll records and financials to recognize possible chances for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the needed forms and documentation on your behalf. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have progressed over time. These business remain updated with the latest changes and make sure that your filings adhere to the most current guidelines. They can also supply continuous assistance if the IRS requests extra info or performs an audit related to your ERC claim.
It’s important to research study and vet any business offering ERC filing assistance to guarantee their trustworthiness and knowledge. Look for recognized companies with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax specialists who use ERC submitting support.
Keep in mind that while these business can supply valuable help, it’s always a great idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and ensure precise filings.
The Employee 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 encourage services to keep and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit services, tax-exempt companies, and particular governmental entities. To certify, employers must fulfill one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As discussed earlier, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of certified incomes paid to workers, including particular health plan 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: At first, services that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they received a PPP loan. However, the very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and enhanced, permitting qualified employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for companies to modify prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, generally Form 941. The excess can be reimbursed to the company if the credit exceeds the amount of employment taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have actually developed in time. The best course of action is to speak with a tax professional or go to the main internal revenue service website for the most in-depth and updated details concerning the ERC, including any recent legal modifications or updates.
To qualify for the ERC, an organization must fulfill one of the following requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. For 2021, a substantial decrease is defined as a 20% decline 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 invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and businesses that received a PPP loan may have constraints on claiming the credit.
The procedure for declaring the ERC involves completing the necessary kinds and including the credit on your work tax return (normally Kind 941). The exact time it takes to process the credit can vary based on a number of factors, consisting of the intricacy of your business and the workload of the IRS. It’s recommended to seek advice from a tax expert for guidance particular to your situation.
There are several business that can assist with the procedure of claiming the ERC. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based on basic understanding and might not show the most current updates or modifications to the ERC. It’s important to speak with a tax expert or go to the main internal revenue service website for the most accurate and up-to-date info concerning eligibility, declaring procedures, and readily available assistance.
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 employees whether they in fact worked or not. To put it simply, 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 employer had more than 100 employees typically in 2019, then the credit is.
permitted just for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just money payments but likewise a portion of the expense of employer.
offered healthcare. Innovation Refunds Revenue
Payment.
Employers can be immediately compensated for the credit by decreasing the quantity of payroll taxes they.