Lets talk first about Is The Employee Retention Credit Real :
Our group here what do these men doing everybody in this space is assisting teach people about ERC and uh constantly supply a beautiful breakfast and have individuals actually learn about 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 want to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I suggest you understand if you simply begin to take a look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I imply think about the number of real clients that went through the program yeah this is the very end this is the party at the end when the check is verified the numbers are verified 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 understand when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything up until they really receive the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their checking account and they can genuinely rely on Wonder trust that the process has been completed and how many you believe you’ve processed because 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 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 talking about something truly crucial today the employee retention credit which the majority of you have actually never ever heard of I definitely hadn’t heard of it till extremely recently and discovered a lot about it due to the fact that this is most likely the most affordable 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 expert with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 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 all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically 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 money payroll tax refund all right go on sorry I simply have to make sure we got that point I indicate that’s a huge distinction a loan versus cash money I like cash cash 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get actual money from the internal revenue service all right so let’s talk about 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 staff member 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 employees right you had to have actually owned a business however it’s based on you having W-2 employees 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 six quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to an optimum of 7 thousand per quarter how did that occur um they simply changed the rules in.
2021 versus since the chaos of the pandemic so they wished 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 occurs 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 6 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 have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New York 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 substantial obviously now the big question is why does no one know about this since look when I initially became aware of this when I initially fulfilled Josh you understand I’ve got great deals of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many lots of investments in entrepreneurs of which numerous suffered through the pandemic when I first found out about this I called BS I don’t believe it because I use the PPP we went through the cash 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 should have and we utilized them carefully to stay alive during the pandemic so when I became aware of this I stated nah it can’t be true but when I dug around I even called to my political leader buddies Guv Senators they didn’t know about it I suggest that’s how you know that’s how false information is that there’s no info out there then a lot of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody understand about the staff member retention credit you understand what’s fascinating you’re speaking about the banks Kevin because 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 procedure that’s all um and here there was chaos since keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing 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 federal government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not actually she or he’s never done it in the past do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business 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 actually 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 companies so a lot of our huge big corporate clients have dealt 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 designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, company whose service is totally or partly suspended.
decline by more than 50%.
1. The credit is readily available to all employers no matter size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. Once the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying salaries differs by whether a company had, on average, basically than.
100 employees in 2019.
Companies that focus on ERC filing help generally provide competence and assistance to help organizations navigate the intricate procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Is The Employee Retention Credit Real
Eligibility Evaluation: These business will evaluate your organization’s eligibility for the ERC based upon factors such as your industry, revenue, and operations. They can assist determine if you fulfill the requirements for the credit and identify the maximum credit quantity you can declare.
Paperwork and Calculation: ERC filing services will assist in gathering the necessary paperwork, such as payroll records and financial statements, to support your claim. They will also help determine the credit amount based upon qualified salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these business can evaluate your past payroll records and financials to identify prospective opportunities for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the essential kinds and documentation on your behalf. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have evolved in time. These business remain updated with the most recent changes and make sure that your filings comply with the most present guidelines. If the IRS demands extra details or performs an audit associated to your ERC claim, they can also provide continuous assistance.
It’s important to research and vet any company offering ERC filing help to guarantee their reliability and competence. Try to find established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who provide ERC submitting support.
Bear in mind that while these companies can supply important help, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed 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 procedures. The objective of the ERC is to encourage organizations to retain and pay their workers during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit companies, tax-exempt organizations, and certain governmental entities. To qualify, companies should meet one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As pointed out previously, for 2021, a considerable decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly 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 (approximately 70%) of certified salaries paid to employees, consisting of particular health plan expenditures. 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, organizations that got an Income Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they received a PPP loan. However, the very same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing qualified companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive provision provides an opportunity for services to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Form 941. The excess can be reimbursed to the employer if the credit goes beyond the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have actually progressed in time. The best course of action is to consult with a tax expert or visit the official IRS website for the most updated and comprehensive information concerning the ERC, including any recent legal modifications or updates.
To get approved for the ERC, a company should satisfy among the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt companies, but there are some exceptions. Federal government entities and businesses that received a PPP loan might have constraints on declaring the credit.
The process for claiming the ERC includes completing the required types and including the credit on your employment income tax return (usually Kind 941). The exact time it requires to process the credit can vary based on a number of aspects, including the complexity of your service and the work of the internal revenue service. It’s suggested to consult with a tax professional for assistance specific to your scenario.
There are numerous companies that can aid with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these companies straight to ask about their costs and services.
Please keep in mind that the details supplied here is based upon basic knowledge and might not reflect the most current updates or modifications to the ERC. It’s important to consult with a tax expert or visit the official internal revenue service website for the most precise and updated info concerning eligibility, claiming procedures, and readily available support.
Less than 100. If the company had 100 or less employees usually in 2019, then the credit is based.
on wages paid to all employees whether they actually worked or not. In other words, even if the.
staff members worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 staff members on average in 2019, then the credit is.
permitted only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just money payments but likewise a part of the cost of company.
supplied healthcare. Is The Employee Retention Credit Real
Employers can be right away repaid for the credit by reducing the quantity of payroll taxes they.