Lets talk first about S Corp Owner Employee Retention Credit :

Our group here what do these men doing everybody in this room is assisting teach individuals about ERC and uh constantly supply a gorgeous breakfast and have individuals truly learn about the program we need to head to the space where we have the ability to display some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are replicate copies of the letters that go to customers validating that the check is on the way I suggest you know if you simply begin to look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I imply consider 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 validated 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

receive this you understand the check is opted for sure which’s when they pay so they do not pay anything up until they in fact receive the money they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the method they deposit it into their savings account and they can truly rely on Wonder trust that the process has actually been finished and the number of you think you have actually processed considering that 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 require 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 Fantastic here you’re at my YouTube channel we’re talking about something truly crucial today the worker retention credit which the majority of you have never ever heard of I certainly had not heard of it up until really recently and learned a lot about it since this is most likely the most affordable expense of capital for any small company anywhere

anytime if you have staff members between five 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 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 up your bank supervisor and state provide me a loan it does not 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 have actually ended up being yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to discover everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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.

remedy the cash cash payroll tax refund okay go on sorry I simply need to make certain we got that point I suggest that’s a big difference a loan versus cash money I like cash cash that’s what we’re speaking about 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 initial cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get actual money from the IRS all right so let’s talk about how it works since it seems 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 money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members right you had to have actually owned a service but it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 staff members 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 need to be on payroll for the first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 of 2021. all right so that’s how it’s measured you need 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 computation in 2020 to be specific Kevin is 50 of the worker’s wage to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to a maximum of 7 thousand per quarter how did that happen um they just altered the rules in.

2021 versus due to the fact that the mayhem 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 5 thousand Max and then 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 five 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 caveat here the PPP money would need to be decreased 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 a person so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big clearly now the big concern is why does nobody know about this because appearance when I first heard about this when I first fulfilled Josh you understand I have actually got great deals of financial investments in lots of companies I’m a significant supporter for entrepreneurship in America and make lots of many investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t believe it because 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 and that were well been worthy of and we utilized them wisely to survive during the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my politician buddies Guv Senators they didn’t learn about it I indicate that’s how you know that’s how false information is that there’s no information out there then a lot of people told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody learn about the worker retention credit you understand what’s interesting you’re speaking about the banks Kevin because 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 big 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 just procedure process that’s all um and here there was mayhem due to the fact that remember in the initial cares act you might refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.

do this does your CFO know how to do this not actually he or she’s never done it before do the banks do it nope the banks do not do it the payroll companies 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 entered into this service and bottom line my firm Kevin has stayed in business considering that 2009 and we’ve been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have worked with bottom line to recover other federal government programs we’ve 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 staff member retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Because of COVID-19 or whose gross invoices, employer whose company is completely or partially suspended.
decline by more than 50%.
Schedule.
1. The credit is available to all employers despite size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is fully or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.

Calculation of the Credit.
The amount of the credit is 50% of the certifying earnings 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 varies by whether an employer had, usually, basically than.
100 workers in 2019.

Business that focus on ERC filing support usually provide proficiency and assistance to assist services navigate the intricate procedure of declaring the credit. They can use different services, including:.

 

How is the employee retention credit calculated? S Corp Owner Employee Retention Credit

Eligibility Evaluation: These business will examine your company’s eligibility for the ERC based upon aspects such as your market, revenue, and operations. If you satisfy the requirements for the credit and determine the maximum credit amount you can declare, they can assist identify.
Paperwork and Computation: ERC filing services will assist in collecting the essential documentation, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit quantity based on eligible earnings and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to determine potential chances for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the required types and paperwork on your behalf. This consists of completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have actually developed with time. These companies remain updated with the current changes and make sure that your filings adhere to the most existing guidelines. If the IRS demands extra details or conducts an audit associated to your ERC claim, they can likewise provide continuous assistance.
It’s important to research and vet any company providing ERC filing support to ensure their credibility and knowledge. Try to find recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax specialists who use ERC filing support.

Remember that while these companies can offer important help, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and procedure 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 steps. The objective of the ERC is to motivate companies to keep and pay their staff members during the pandemic, even if their operations have been affected.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is readily available to eligible employers, consisting of for-profit companies, tax-exempt organizations, and particular governmental entities. To certify, companies must fulfill one of two requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a percentage (approximately 70%) of certified wages paid to employees, consisting of certain health plan expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that got an Income Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, 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 earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, permitting eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for businesses to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment income tax return, generally Kind 941. The excess can be reimbursed to the employer if the credit exceeds the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility requirements have developed in time. The very best course of action is to consult with a tax professional or visit the official IRS site for the most detailed and updated information concerning the ERC, including any current legal modifications or updates.

To receive the ERC, a service must satisfy among the following requirements:.

Business operations were completely or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices 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 services of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and services that received a PPP loan might have constraints on declaring the credit.

The process for claiming the ERC includes finishing the required forms and consisting of the credit on your work income tax return (typically Kind 941). The exact time it requires to process the credit can differ based on a number of elements, including the complexity of your service and the workload of the IRS. It’s recommended to talk to a tax professional for assistance specific to your circumstance.

There are numerous companies that can aid with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some well-known companies that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and contact these companies straight to ask about their services and charges.

Please note that the info provided here is based upon general knowledge and might not reflect the most recent updates or modifications to the ERC. It is very important to consult with a tax professional or visit the official IRS site for the most precise and up-to-date details concerning eligibility, declaring procedures, and offered support.

Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on incomes paid to all employees whether they really worked or not. In other words, even if the.
workers worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
permitted only for wages paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not simply money payments but likewise a part of the cost of company.
provided healthcare. S Corp Owner Employee Retention Credit
Payment.

Employers can be right away reimbursed for the credit by decreasing the amount of payroll taxes they.

Lets talk first about \’s-corp Owner Employee Retention Credit :

Our team here what do these guys doing everybody in this space is helping teach people about ERC and uh always supply a lovely breakfast and have people actually learn about the program we need to head to the space where we are able to show 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 literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I imply you know if you just begin to look at a few of these here I mean 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 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 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 know 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 really receive the money they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they transfer it into their checking account and they can really rely on Wonder trust that the process has actually been finished and the number of you believe you’ve processed since you started this we have to do with 35 000 of these for

 

about 6 billion dollars wow so clearly they know what they’re doing which’s what you need you require specialists 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 Wonderful here you’re at my YouTube channel we’re speaking about something truly essential today the employee retention credit which the majority of you have never become aware of I certainly hadn’t become aware of it up until very just recently and found out a lot about it because this is probably the most affordable expense of capital for any small business anywhere

anytime if you have workers between 5 and five hundred so I’ve got the specialist 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 difficult this isn’t like PPP we just phone your bank supervisor and state give me a loan it doesn’t 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 soon you got to discover 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 offered companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.

fix the cash cash payroll tax refund all right go on sorry I just need to make certain we got that point I mean that’s a big distinction a loan versus money money I like cash money 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 lovely difficult check in the mail where you get real cash from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker 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 actually owned a business but it’s based upon you having W-2 workers in America not 10.99. so 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 need to be on payroll for the first six 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. okay so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my preferred part money 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 exact Kevin is 50 of the staff member’s income to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that take place um they simply altered the rules in.

2021 versus since the turmoil 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 up to five thousand Max and after that what takes place 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 six thousand dollars per worker that is because that’s a lot of cash it is now there’s a caveat here the PPP cash would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s state hypothetically you owned a restaurant in New york city 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 internal revenue service so it’s substantial undoubtedly now the big question is why does no one learn about this since appearance when I initially became aware of this when I initially fulfilled Josh you understand I’ve got lots of investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make lots of lots of financial investments in business owners of which many suffered through the pandemic when I initially became aware of this I called BS I do not think it due to the fact that I use the PPP we went through the cash 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 should have and we used them sensibly to survive throughout the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even contacted us to my politician pals Guv Senators they didn’t understand about it I imply that’s how you know that’s how false information is that there’s no details out there then a lot of individuals informed me well you can’t get it because 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 interesting you’re talking about the banks Kevin due to the fact that in the PPP loan process 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 nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure procedure that’s all um and here there was turmoil since keep in mind in the original cares act you might refrain from doing both programs so if you had done PPP you might not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.

do this does your CFO know how to do this not truly 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 company your accountant no your accounting professional’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 considering that 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our big big corporate clients have actually dealt with bottom line to recover other federal government programs we have actually 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 government programs.

The staff member 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 up to $10,000 in incomes paid by an.
employer whose organization is fully or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Schedule.
1. The credit is available to all employers despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s service is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. Once the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.

Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether an employer had, typically, basically than.
100 staff members in 2019.

Companies that focus on ERC filing support generally supply expertise and support to assist companies browse the intricate process of claiming the credit. They can use various services, consisting of:.

 

How is the employee retention credit calculated? \’s-corp Owner Employee Retention Credit

Eligibility Assessment: These companies will evaluate your service’s eligibility for the ERC based on factors such as your market, profits, and operations. If you satisfy the requirements for the credit and recognize the maximum credit amount you can claim, they can assist figure out.
Documentation and Computation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise assist determine the credit amount based on eligible wages and other qualifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can review your previous payroll records and financials to identify prospective chances for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the needed kinds and documentation on your behalf. This includes completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC policies and assistance have actually developed over time. These companies remain upgraded with the latest modifications and make sure that your filings comply with the most current standards. If the IRS requests extra details or performs an audit associated to your ERC claim, they can also provide continuous support.
It is essential to research and vet any company using ERC filing assistance to guarantee their trustworthiness and know-how. Search for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who offer ERC submitting support.

Bear in mind that while these business can offer important help, it’s constantly a good idea to have a standard understanding of the ERC requirements and process yourself. This will help you make informed choices and guarantee accurate filings.

The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to encourage services to retain and pay their employees 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 employers, consisting of for-profit organizations, tax-exempt organizations, and specific governmental entities. To certify, employers must meet one of two criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As pointed out previously, for 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts 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 amounts to a percentage (up to 70%) of qualified salaries paid to staff members, including certain 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: Initially, services that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. However, the very same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, permitting eligible companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, usually Kind 941. The excess can be reimbursed to the company if the credit goes beyond the quantity of employment taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have progressed gradually. The best strategy is to talk to a tax expert or go to the official IRS site for the most detailed and updated details regarding the ERC, including any recent legislative modifications or updates.

To qualify for the ERC, a service needs to satisfy one of the following criteria:.

Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and organizations that got a PPP loan might have constraints on declaring the credit.

The process for claiming the ERC involves completing the essential types and consisting of the credit on your employment income tax return (typically Kind 941). The exact time it requires to process the credit can differ based upon a number of elements, consisting of the intricacy of your service and the workload of the internal revenue service. It’s recommended to speak with a tax expert for assistance particular to your situation.

There are several companies that can assist with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some popular companies that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and contact these companies directly to inquire about their services and fees.

Please keep in mind that the information offered here is based upon general understanding and might not show the most recent updates or changes to the ERC. It is essential to speak with a tax expert or go to the main internal revenue service website for the most up-to-date and accurate information concerning eligibility, declaring treatments, and available support.

Less than 100. The credit is based if the employer had 100 or fewer staff members on average in 2019.
on incomes paid to all workers whether they in fact 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. If the company had more than 100 employees usually in 2019, then the credit is.
enabled just for salaries paid to workers who did not work during the calendar quarter.
In both cases, “incomes” includes not just money payments however also a part of the cost of employer.
provided health care. \’s-corp Owner Employee Retention Credit
Payment.

Employers can be right away compensated for the credit by lowering the quantity of payroll taxes they.

Lets talk first about S-corp Owner Employee Retention Credit :

Our group here what do these people doing everybody in this room is helping teach people about ERC and uh always supply a lovely breakfast and have individuals actually learn more 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 ‘d like to see that what is this this is uh numerous countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I imply you know if you just start to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just 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 confirmed the numbers are validated 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

receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything till they really receive the money they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their bank account and they can really rely on Wonder trust that the procedure has actually been finished and the number of you believe you’ve processed because you started this we have to do with 35 000 of these for

 

about six billion dollars wow so plainly they understand what they’re doing and that’s what you require 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 Wonderful here you’re at my YouTube channel we’re discussing something really crucial today the employee retention credit which most of you have actually never ever heard of I certainly hadn’t heard of it until really recently and discovered a lot about it since this is most likely the lowest cost of capital for any small business anywhere

anytime if you have workers between 5 and five hundred so I have actually got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 just contact your bank manager and state provide 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’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to learn everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used services three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody 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.

fix the cash cash payroll tax refund alright go on sorry I simply need to ensure we got that point I imply that’s a big distinction a loan versus money money I like money 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 gorgeous hard check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works due to the fact that it seems like to me if it’s a if it’s worker retention credit that individual had to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned a business however it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 staff members 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 very first six months of 2021 on the W-2 proper so there were 6 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 2 and three of 2021. all right so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part money how much can you return 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 a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that happen um they just altered the rules in.

2021 versus because the mayhem of the pandemic so they wished 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 occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caution here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big undoubtedly now the huge concern is why does nobody understand about this because appearance when I first found out about this when I first satisfied Josh you know I’ve got great deals of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make lots of numerous financial investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it due to the fact that I utilize 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 which were well should have and we utilized them carefully to stay alive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even called to my politician pals Guv Senators they didn’t know about it I indicate that’s how you understand 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 likewise not real so let’s ask Josh why does nobody learn about the employee retention credit you know what’s intriguing you’re discussing the banks Kevin because in the PPP loan process the federal government made it really 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 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 chaos because remember in the original 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 changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never 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 ever done it previously do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this organization and bottom line my firm Kevin has been in business because 2009 and we have actually been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.

The worker 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 incomes paid by an.
company whose company is fully or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Schedule.
1. The credit is available to all employers despite size including tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s business is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. When the.
company’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.

Computation of the Credit.
The amount of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether an employer had, on average, basically than.
100 workers in 2019.

Business that specialize in ERC filing help typically provide knowledge and assistance to help businesses navigate the complicated process of claiming the credit. They can provide numerous services, including:.

 

How is the employee retention credit calculated? S-corp Owner Employee Retention Credit

Eligibility Assessment: These companies will examine your company’s eligibility for the ERC based on elements such as your industry, revenue, and operations. They can assist figure out if you meet the requirements for the credit and recognize the maximum credit quantity you can claim.
Paperwork and Estimation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will likewise help compute the credit amount based on eligible earnings and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can evaluate your past payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the required kinds and paperwork in your place. This consists of finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have actually progressed gradually. These business remain updated with the most recent changes and make sure that your filings comply with the most current guidelines. They can likewise provide ongoing assistance if the internal revenue service demands extra info or carries out an audit related to your ERC claim.
It’s important to research study and veterinarian any business offering ERC filing assistance to ensure their reliability and know-how. Look for established firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who use ERC filing assistance.

Remember that while these business can provide important support, it’s always a good concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure accurate filings.

The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage companies to maintain 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 eligible companies, including for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, companies should meet one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. As mentioned earlier, for 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decline 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 salaries paid to workers, including specific 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, businesses that received an Income Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they received a PPP loan. The very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, allowing eligible companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to change prior-year tax returns and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment income tax return, usually Kind 941. If the credit surpasses the amount of work taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC arrangements and eligibility criteria have actually developed with time. The best strategy is to speak with a tax expert or visit the official internal revenue service website for the most current and detailed info relating to the ERC, including any recent legislative changes or updates.

To qualify for the ERC, a business should meet one of the following criteria:.

The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the very 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 invoices compared to the right away preceding quarter.
The ERC is offered to services of all sizes, including tax-exempt organizations, however there are some exceptions. For instance, federal government entities and companies that got a PPP loan might have constraints on claiming the credit.

The procedure for declaring the ERC involves completing the essential forms and including the credit on your employment income tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon a number of elements, consisting of the complexity of your company and the workload of the IRS. It’s advised to seek advice from a tax expert for guidance specific to your scenario.

There are a number of companies that can assist with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some widely known business that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these companies directly to inquire about their fees and services.

Please keep in mind that the details offered here is based upon basic understanding and might not show the most current updates or modifications to the ERC. It is necessary to consult with a tax professional or check out the official internal revenue service site for the most precise and up-to-date details relating to eligibility, declaring treatments, and readily available assistance.

Less than 100. If the company had 100 or less workers on average in 2019, then the credit is based.
on wages paid to all employees whether they really 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 company had more than 100 employees usually in 2019, then the credit is.
enabled only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “wages” consists of not simply money payments however also a portion of the expense of company.
supplied health care. S-corp Owner Employee Retention Credit
Payment.

Companies can be instantly compensated for the credit by reducing the quantity of payroll taxes they.