Lets talk first about When Will I Get My Employee Retention Credit :
Our group here what do these men doing everybody in this space is assisting teach individuals about ERC and uh always supply a stunning breakfast and have people truly discover the program we ought to head to the space where we have the ability to display some of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of millions of 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 simply begin to take a look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I indicate think about the number of real clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are validated 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
receive this you know the check is gone for sure and that’s when they pay so they do not pay anything till they actually get the money they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their bank account and they can truly rely on Wonder trust that the process has actually been ended up and how many you think you’ve processed since you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing which’s what you require you require 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 Wonderful here you’re at my YouTube channel we’re speaking about something really important today the staff member retention credit which the majority of you have never ever heard of I certainly hadn’t become aware of it till really recently and discovered a lot about it since this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I’ve got the specialist with me this is Josh Fox he’s the creator 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 simply contact your bank manager and say offer 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 have actually 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 worker retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed 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 practically everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund alright go on sorry I simply have to ensure we got that point I suggest that’s a huge difference a loan versus money cash I like money cash that’s what we’re discussing 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 beautiful tough check in the mail where you get real money from the IRS all right so let’s speak about how it works due to the fact that 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 cash is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have actually owned an organization but it’s based upon you having W-2 employees 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 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 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my favorite part cash just how much can you return 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 staff member’s salary to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to an optimum of seven thousand per quarter how did that take place um they simply 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 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 after that what occurs 21 000 Max in 2021 oh that’s how you develop 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 because that’s a lot of money it is now there’s a caution here the PPP cash would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace 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 workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big clearly now the big concern is why does nobody learn about this since appearance when I initially 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 advocate for entrepreneurship in America and make lots of numerous financial investments in business owners of which lots of suffered through the pandemic when I initially became aware of this I called BS I don’t think it because I utilize 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 deserved and we used them carefully to stay alive 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 political leader pals Governor Senators they didn’t know about it I indicate that’s how you know that’s how misinformation is that there’s no info out there then a bunch of individuals 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 employee retention credit you know what’s fascinating you’re discussing the banks Kevin because in the PPP loan process the federal government made it extremely 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was turmoil since keep in mind in the initial cares act you might not do 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 anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never ever done it in the past do the banks do it nope the banks don’t do it the payroll business yeah a few 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 company and bottom line my company Kevin has been in business because 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big big corporate clients have worked with bottom line to recover other federal government programs we have actually done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
employer whose business is totally or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
Availability.
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) little.
organizations who take Small company Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is completely or partially suspended by federal 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.
company’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying earnings varies by whether a company had, usually, more or less than.
100 employees in 2019.
Companies that focus on ERC filing help usually offer competence and assistance to help organizations browse the complex procedure of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? When Will I Get My Employee Retention Credit
Eligibility Evaluation: These business will assess your company’s eligibility for the ERC based on elements such as your market, revenue, and operations. They can help identify if you meet the requirements for the credit and identify the optimum credit amount you can claim.
Paperwork and Computation: ERC filing services will help in collecting the required paperwork, such as payroll records and monetary statements, to support your claim. They will likewise assist determine the credit quantity based on eligible wages and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you modify previous income tax return to claim these refunds.
Filing Help: Companies focusing on ERC filings will prepare and send the essential kinds and documents in your place. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have actually evolved over time. These business stay updated with the latest changes and make sure that your filings comply with the most existing standards. If the IRS requests additional info or performs an audit related to your ERC claim, they can likewise offer ongoing support.
It is necessary to research and vet any business providing ERC filing help to ensure their reliability and know-how. Try to find recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax professionals who offer ERC filing assistance.
Remember that while these companies can supply valuable support, it’s always an excellent idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and guarantee precise filings.
The Staff Member 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 motivate companies to keep and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible employers, including for-profit companies, tax-exempt companies, and specific governmental entities. To certify, companies should satisfy one of two criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As pointed out previously, for 2021, a significant decrease is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a percentage (as much as 70%) of qualified earnings paid to staff members, including particular 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: Initially, companies that received an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they received a PPP loan. However, the exact same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: 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 arrangement supplies an opportunity for services to modify prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, usually Type 941. The excess can be refunded to the employer if the credit goes beyond the quantity of work taxes owed.
It is necessary to note that the ERC arrangements and eligibility criteria have progressed with time. The best course of action is to seek advice from a tax expert or go to the official IRS site for the most updated and in-depth information concerning the ERC, including any current legislative changes or updates.
To receive the ERC, a company should meet one of the following criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. 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 considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, however there are some exceptions. For example, federal government entities and services that received a PPP loan may have limitations on claiming the credit.
The procedure for claiming the ERC includes completing the essential forms and consisting of the credit on your employment tax return (normally Form 941). The exact time it requires to process the credit can vary based on a number of elements, including the complexity of your company and the workload of the IRS. It’s suggested to speak with a tax professional for guidance specific to your situation.
There are a number of companies that can help with the procedure of declaring the ERC. Some well-known business that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information supplied here is based on basic understanding and may not reflect the most recent updates or modifications to the ERC. It is very important to talk to a tax professional or visit the main IRS website for the most precise and current information relating to eligibility, declaring procedures, and readily available assistance.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on wages paid to all workers whether they really 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 employer had more than 100 staff members on average in 2019, then the credit is.
permitted just for incomes paid to employees who did not work during the calendar quarter.
In both cases, “incomes” includes not simply money payments but also a portion of the expense of company.
provided healthcare. When Will I Get My Employee Retention Credit
Payment.
Employers can be immediately repaid for the credit by minimizing the quantity of payroll taxes they.