Lets talk first about Linda Warner Employee Retention Credit :
Our group here what do these men doing everybody in this room is assisting teach individuals about ERC and uh always offer a gorgeous breakfast and have people actually learn about the program we need to head to the space 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 replicate copies of the letters that go to clients confirming that the check is on the method I imply you understand if you just begin to look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I imply think of 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 internal revenue service heading to the client so that’s how you’re able to track it you know when you
get this you understand the check is opted for sure and that’s when they pay so they don’t pay anything until they in fact get the money they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their checking account and they can really rely on Wonder trust that the procedure has been completed and the number of you believe you have actually processed since you started 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 require 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 Terrific here you’re at my YouTube channel we’re speaking about something truly essential today the employee retention credit which most of you have never heard of I definitely hadn’t become aware of it until extremely just recently and learned a lot about it because this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have workers in between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas 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 simply phone your bank supervisor and state offer me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve ended up being yes the Ambassador and paid representative for this I love this program it’s going away very 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 begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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.
remedy the money cash payroll tax refund fine go on sorry I simply need to make certain we got that point I indicate that’s a huge difference a loan versus money cash I like cash cash that’s what we’re discussing fine 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 beautiful tough check in the mail where you get actual cash from the IRS all right so let’s speak about 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 Assumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you had to have owned a business but it’s based upon you having W-2 staff members 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 eligible 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 2 three and four of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part money how much can you get back per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s wage to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to an optimum of seven thousand per quarter how did that happen um they just changed the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wished 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 up to five thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a great deal of money it is now there’s a caveat here the PPP money would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around 10 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 big certainly now the big concern is why does no one learn about this since look when I first became aware of this when I first met Josh you understand I’ve got lots of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous numerous financial investments in business owners of which lots of suffered through the pandemic when I initially found out about this I called BS I don’t think it since I use 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 and that were well been worthy of and we utilized them sensibly to survive throughout the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even called to my politician buddies Governor Senators they didn’t know about it I imply that’s how you know that’s how misinformation is that there’s no information out there then a bunch of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one understand about the worker retention credit you understand what’s fascinating you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it very clear that if you wanted 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 mayhem since keep in mind in the initial cares act you might not do 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 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 understand how to do this not actually she or he’s never 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 done this before unless you have an account that went into this service and bottom line my company Kevin has stayed in business because 2009 and we have actually been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big big corporate customers have actually worked with bottom line to recover other government programs we have actually done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
employer whose service is completely or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all employers regardless of size including tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is completely or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. Once the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
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 overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages differs by whether an employer had, on average, more or less than.
100 staff members in 2019.
Business that focus on ERC filing help normally supply expertise and support to assist businesses navigate the intricate process of claiming the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Linda Warner Employee Retention Credit
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based upon elements such as your market, revenue, and operations. They can help determine if you satisfy the requirements for the credit and determine the maximum credit amount you can declare.
Paperwork and Estimation: ERC filing services will help in collecting the required paperwork, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit amount based on eligible wages and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can review your previous payroll records and financials to determine possible chances for retroactive credits. They can help you amend prior income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the needed forms and paperwork on your behalf. This consists of completing Type 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have progressed in time. These business stay upgraded with the current changes and make sure that your filings adhere to the most present guidelines. They can also provide continuous support if the internal revenue service demands extra information or conducts an audit related to your ERC claim.
It is very important to research and vet any business providing ERC filing help to guarantee their trustworthiness and know-how. Search for established companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax specialists who provide ERC filing assistance.
Remember that while these business can supply valuable assistance, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and guarantee precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The objective of the ERC is to motivate companies to keep and pay their workers throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, including for-profit companies, tax-exempt companies, and specific governmental entities. To certify, employers need to fulfill one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As pointed out earlier, for 2021, a considerable 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 specified as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices 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 is equal to a percentage (as much as 70%) of certified earnings paid to employees, consisting of particular health insurance expenditures. 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 received a Paycheck Defense Program (PPP) loan were not eligible 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 exact same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and enhanced, enabling qualified companies to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to amend prior-year income tax return and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Form 941. If the credit surpasses the quantity of work taxes owed, the excess can be refunded to the employer.
It is essential to note that the ERC arrangements and eligibility criteria have actually developed with time. The very best strategy is to consult with a tax expert or visit the official internal revenue service website for the most in-depth and updated information concerning the ERC, consisting of any current legislative changes or updates.
To qualify for the ERC, a company should satisfy among the following requirements:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and organizations that received a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the essential types and consisting of the credit on your work tax return (generally Form 941). The exact time it requires to process the credit can differ based on numerous elements, including the complexity of your service and the work of the IRS. It’s suggested to talk to a tax expert for assistance particular to your scenario.
There are a number of companies that can help with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and call these business straight to ask about their costs and services.
Please note that the info offered here is based upon basic knowledge and may not reflect the most recent updates or changes to the ERC. It is necessary to consult with a tax expert or check out the official IRS site for the most current and precise details concerning eligibility, declaring treatments, and readily available support.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on incomes paid to all staff members whether they actually worked or not. To put it simply, 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 company had more than 100 employees on average in 2019.
allowed just for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” includes not just money payments however also a portion of the expense of employer.
supplied health care. Linda Warner Employee Retention Credit
Companies can be instantly compensated for the credit by minimizing the amount of payroll taxes they.