Lets talk first about Where Is My Employee Retention Credit :
Our group here what do these men doing everyone in this space is assisting teach people about ERC and uh always supply a beautiful breakfast and have people truly learn more about the program we need to head to the room where we have the ability to display a few of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars literally 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 mean you understand if you simply start to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s just I mean think of the number of real customers 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 confirmed and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you have the ability to track it you understand when you
get this you know the check is gone for sure which’s when they pay so they don’t pay anything up until they in fact 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 deposit it into their bank account and they can really rely on Wonder trust that the process has actually been ended up and how many you believe you’ve processed because you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you need 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 Wonderful here you’re at my YouTube channel we’re discussing something actually important today the worker retention credit which most of you have never heard of I certainly hadn’t heard of it till really just recently and learned a lot about it because this is probably the lowest expense of capital for any small company anywhere
anytime if you have employees between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 simply phone your bank manager and state offer 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 like this program it’s disappearing soon you got to find out everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations three 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 difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund alright go on sorry I just need to ensure we got that point I imply that’s a huge distinction 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 stunning tough check in the mail where you get real cash from the internal revenue service all right so let’s discuss how it works since it seems like to me if it’s a if it’s staff member retention credit that person had to be an employee so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for staff members right you needed to have actually owned a business but it’s based upon 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 have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 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 3 and four of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part money just how much can you return per worker that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to an optimum 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 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 as much as 5 thousand Max and after that what occurs 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 6 thousand dollars per employee that is since that’s a lot of cash it is now there’s a caveat here the PPP cash would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say 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 money you would still get a million dollar in the mail from the internal revenue service so it’s big undoubtedly now the huge question is why does no one learn about this because look when I first found out about this when I initially fulfilled Josh you understand I’ve got great deals of financial investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make lots of numerous investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not believe it due to the fact that I use 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 and that were well should have and we used them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t hold true however when I dug around I even contacted us to my politician buddies Governor Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people told 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 no one learn about the staff member retention credit you know what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it extremely clear that if you desired a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our country and they would process procedure 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 chaos because keep in mind in the initial cares act you could not do both programs so if you had done PPP you could not do ERC in the initial program and when they changed 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 government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not truly 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 went into this company and bottom line my firm Kevin has stayed in business since 2009 and we’ve been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate clients have actually worked with bottom line to recuperate other federal government programs we’ve 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 designed to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose company is fully or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Schedule.
1. The credit is offered to all companies regardless of size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. When the.
employer’s gross receipts exceed 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 incomes paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The definition of qualifying salaries varies by whether an employer had, on average, basically than.
100 workers in 2019.
Business that focus on ERC filing support usually offer know-how and assistance to assist services browse the intricate procedure of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Where Is My Employee Retention Credit
Eligibility Assessment: These business will evaluate your company’s eligibility for the ERC based upon factors such as your market, revenue, and operations. They can help figure out if you fulfill the requirements for the credit and identify the maximum credit quantity you can declare.
Paperwork and Calculation: ERC filing services will help in collecting the required paperwork, such as payroll records and monetary statements, to support your claim. They will also help compute the credit amount based upon eligible incomes and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize potential chances for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the necessary types and paperwork in your place. This includes finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have actually evolved in time. These companies remain updated with the current changes and ensure that your filings comply with the most current guidelines. If the IRS demands extra information or performs an audit related to your ERC claim, they can also offer continuous assistance.
It’s important to research and vet any business providing ERC filing support to ensure their trustworthiness and competence. Search for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who offer ERC filing support.
Bear in mind that while these business can provide valuable support, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified 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 organizations to keep and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, employers need to fulfill one of two requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As pointed out previously, for 2021, a considerable decline 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 exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately 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 percentage (approximately 70%) of certified earnings paid to workers, consisting of specific health plan expenditures. The maximum 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 got an Income Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to claim the ERC even if they received a PPP loan. The same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, enabling qualified employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to change prior-year income tax return and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, normally Form 941. If the credit goes beyond the amount of work taxes owed, the excess can be reimbursed to the company.
It is very important to keep in mind that the ERC provisions and eligibility requirements have actually developed gradually. The very best strategy is to talk to a tax professional or go to the official internal revenue service site for the most updated and comprehensive details concerning the ERC, consisting of any recent legislative changes or updates.
To receive the ERC, a business needs to fulfill among the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is available to companies of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, federal government entities and businesses that received a PPP loan might have limitations on declaring the credit.
The process for claiming the ERC involves finishing the essential types and consisting of the credit on your work tax return (normally Type 941). The exact time it takes to process the credit can vary based upon a number of elements, including the intricacy of your business and the workload of the internal revenue service. It’s suggested to seek advice from a tax expert for assistance particular to your situation.
There are numerous companies that can assist with the procedure of declaring the ERC. Some popular business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on basic understanding and may not reflect the most recent updates or changes to the ERC. It is necessary to seek advice from a tax professional or go to the official IRS site for the most up-to-date and accurate info concerning eligibility, claiming procedures, and readily available help.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on incomes paid to all workers whether they actually worked or not. To put it simply, even if the.
workers worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees typically in 2019, then the credit is.
permitted only for salaries paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply cash payments but likewise a part of the cost of company.
offered healthcare. Where Is My Employee Retention Credit
Payment.
Companies can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.