Lets talk first about When Was Innovation Refunds Founded :
Our team here what do these men doing everybody in this room is helping teach individuals about ERC and uh always provide a beautiful breakfast and have individuals actually find out about the program we must head to the space where we have the ability to display some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I suggest you understand if you just start to take a 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 imply it’s just I suggest think about the number of real customers 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 internal revenue service heading to the customer so that’s how you’re able to track it you understand when you
get this you understand the check is opted for sure and that’s when they pay so they do not pay anything until they actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their bank account and they can really rely on Wonder trust that the procedure has actually been completed and the number of you believe you’ve processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you require you require 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 Terrific here you’re at my YouTube channel we’re talking about something actually important today the employee retention credit which the majority of you have actually never ever become aware of I certainly hadn’t become aware of it until extremely just recently and found out a lot about it since 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 specialist with me this is Josh Fox he’s the creator 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 contact your bank manager and say provide me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered companies three chances 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 two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund all right go on sorry I simply have to ensure we got that point I mean that’s a big difference a loan versus money cash I like cash money that’s what we’re speaking 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 stunning difficult check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for shareholders it’s for workers right you had to have actually owned a company but it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 workers 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 6 months of 2021 on the W-2 right so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and 4 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 throughout that duration now let’s talk my favorite part cash how much can you get back per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s income to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that occur um they simply 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 staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as 5 thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per employee that is since that’s a lot of cash it is now there’s a caution here the PPP cash would need to be lowered from the twenty six 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 somewhere around 10 thousand dollars an individual so let’s state 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 money you would still get a million dollar in the mail from the IRS so it’s big clearly now the huge concern is why does no one know about this because appearance when I initially became aware of this when I initially met Josh you understand I’ve got lots of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many many financial investments in business owners of which numerous suffered through the pandemic when I initially became aware of this I called BS I don’t think it due to the fact that 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 carefully to survive during the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t know about it I imply that’s how you understand that’s how misinformation is that there’s no details out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does nobody know about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan process the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 procedure process that’s all um and here there was mayhem due to the fact that keep in mind in the original cares act you could not do both programs so if you had done PPP you could refrain from doing 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 federal government never made it clear to anybody 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 do not do it the payroll companies yeah a few of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this before unless you have an account that entered into this business and bottom line my firm Kevin has stayed in business given that 2009 and we’ve been working with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have dealt with bottom line to recuperate other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, company whose business is fully or partially suspended.
decline by more than 50%.
Availability.
1. The credit is offered to all employers despite size including tax exempt companies. 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 employer has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partly suspended by federal 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. As soon as 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 amount of the credit is 50% of the certifying earnings 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 differs by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that focus on ERC filing assistance normally provide proficiency and support to assist services navigate the complicated process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? When Was Innovation Refunds Founded
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based on factors such as your industry, revenue, and operations. They can help identify if you meet the requirements for the credit and determine the optimum credit quantity you can declare.
Paperwork and Calculation: ERC filing services will assist in gathering the necessary documentation, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit amount based upon eligible salaries and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can evaluate your past payroll records and financials to recognize prospective chances for retroactive credits. They can help you change previous tax returns to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the necessary forms and documents in your place. This consists of finishing Form 941 or any other required tax return.
Compliance and Updates: ERC regulations and guidance have evolved in time. These business stay upgraded with the most recent changes and ensure that your filings abide by the most existing guidelines. If the IRS requests additional details or performs an audit related to your ERC claim, they can also offer ongoing assistance.
It is very important to research and vet any company offering ERC filing support to ensure their credibility and expertise. Search for established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who use ERC filing assistance.
Bear in mind that while these business can supply valuable support, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified choices and ensure 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 encourage organizations to keep and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit companies, tax-exempt companies, and specific governmental entities. To qualify, employers need to fulfill one of two requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the 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 is equal to a portion (approximately 70%) of qualified incomes paid to workers, including particular health plan costs. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they received a PPP loan. The same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, permitting qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to modify prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, normally Kind 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the company.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have evolved over time. The best course of action is to talk to a tax expert or visit the official internal revenue service site for the most detailed and updated info concerning the ERC, consisting of any recent legislative modifications or updates.
To qualify for the ERC, a service needs to fulfill one of the following requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is offered to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, federal government entities and companies that received a PPP loan may have restrictions on declaring the credit.
The procedure for declaring the ERC involves finishing the essential types and including the credit on your work income tax return (normally Type 941). The exact time it takes to process the credit can differ based upon several factors, consisting of the complexity of your company and the workload of the IRS. It’s suggested to consult with a tax professional for assistance specific to your circumstance.
There are numerous business that can assist with the process of declaring the ERC. Some well-known companies that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based on general knowledge and may not show the most current updates or modifications to the ERC. It is very important to talk to a tax expert or check out the main internal revenue service site for the most accurate and updated details regarding eligibility, declaring procedures, and offered assistance.
Less than 100. The credit is based if the employer had 100 or less employees on average in 2019.
on earnings paid to all employees whether they in fact worked or not. In other words, even if the.
workers worked full-time and earned money for full time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 staff members on average in 2019, then the credit is.
permitted only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just cash payments but also a part of the cost of employer.
provided health care. When Was Innovation Refunds Founded
Payment.
Companies can be instantly reimbursed for the credit by decreasing the amount of payroll taxes they.