Lets talk first about Worksheet 4 Adjusted Employee Retention Credit :
Our team here what do these men doing everyone in this room is assisting teach people about ERC and uh constantly provide a gorgeous breakfast and have individuals actually find out about the program we need to head to the space where we are able to show some of the checks that we are getting for companies and I want 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 way I indicate you know if you simply 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 indicate it’s simply I imply think about 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 verified 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 have the ability to track it you know when you
get this you understand the check is opted for sure and that’s when they pay so they do not pay anything until they actually get the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they transfer it into their bank account and they can genuinely rely on Wonder trust that the procedure has actually been completed and how many you think you’ve processed given that 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 need professionals 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 talking about something actually crucial today the worker retention credit which the majority of you have actually never heard of I certainly had not heard of it till extremely just recently and discovered a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have employees between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we just call 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 inform all of us about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to learn 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 came up with 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 almost everyone it makes a big 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 fine go on sorry I just need to make sure we got that point I suggest that’s a huge distinction a loan versus money money I like cash money that’s what we’re talking about alright 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 actual money from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s employee retention credit that person needed to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you had to have actually owned an organization however it’s based on you having W-2 workers in America not 10.99. 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 six months of 2021 on the W-2 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my preferred part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s wage to an optimum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus due to the fact that the chaos 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 as much as five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caution here the PPP cash would need 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 on average Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say 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 IRS so it’s substantial certainly now the big concern is why does no one learn about this since look when I initially heard about this when I first satisfied Josh you understand I have actually got great deals of investments in great deals of business I’m a major supporter for entrepreneurship in America and make lots of numerous investments in business owners of which numerous suffered through the pandemic when I initially found out about 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 utilized them wisely to survive during the pandemic so when I heard about this I stated nah it can’t be true however when I dug around I even contacted us to my politician pals Guv Senators they didn’t know about it I imply that’s how you know that’s how false information is that there’s no information out there then a bunch of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s interesting you’re talking about the banks Kevin since in the PPP loan procedure the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge banks in our nation and they would process process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process that’s all um and here there was turmoil because remember in the initial cares act you might refrain from doing 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 ever made it clear to any person about how to.
do this does your CFO know how to do this not truly he or she’s never ever 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 accountant’s never ever done this before unless you have an account that entered into this service and bottom line my company Kevin has actually been in business since 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge big business customers have actually worked with bottom line to recover other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose organization is fully or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all companies no matter size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is fully or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. When the.
company’s gross invoices go above 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of certifying incomes differs by whether a company had, typically, basically than.
100 employees in 2019.
Business that focus on ERC filing support generally provide know-how and assistance to help companies browse the complicated process of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Worksheet 4 Adjusted Employee Retention Credit
Eligibility Evaluation: These business will examine your service’s eligibility for the ERC based upon elements such as your industry, earnings, and operations. They can help determine if you fulfill the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Calculation: ERC filing services will help in collecting the needed paperwork, such as payroll records and monetary declarations, to support your claim. They will also assist calculate the credit amount based upon qualified incomes and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to identify prospective opportunities for retroactive credits. They can help you change prior tax returns to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the essential types and paperwork on your behalf. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have developed in time. These companies remain updated with the current modifications and guarantee that your filings adhere to the most current guidelines. They can also supply continuous assistance if the IRS requests additional info or performs an audit related to your ERC claim.
It is necessary to research study and vet any business providing ERC filing help to ensure their reliability and proficiency. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who use ERC filing support.
Remember that while these companies can offer important help, it’s always an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will help you make notified decisions and make sure 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 encourage companies to maintain and pay their employees during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, including for-profit businesses, tax-exempt companies, and specific governmental entities. To certify, employers need to fulfill one of two criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. As pointed out previously, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts 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 amount is equal to a portion (as much as 70%) of certified salaries paid to staff members, consisting of certain health insurance costs. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that received an Income Security 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. However, the exact same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and improved, permitting eligible employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides a chance for services to modify prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, normally Form 941. The excess can be reimbursed to the employer if the credit surpasses the quantity of employment taxes owed.
It is essential to note that the ERC provisions and eligibility criteria have evolved over time. The best course of action is to seek advice from a tax expert or go to the main IRS site for the most detailed and updated info relating to the ERC, including any current legislative changes or updates.
To get approved for the ERC, a service should meet among the following criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, government entities and services that received a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC involves finishing the required kinds and including the credit on your employment income tax return (normally Kind 941). The exact time it requires to process the credit can vary based on several factors, including the intricacy of your company and the workload of the IRS. It’s suggested to seek advice from a tax expert for guidance specific to your scenario.
There are a number of business that can aid with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some well-known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these companies straight to inquire about their services and charges.
Please note that the details offered here is based upon basic understanding and might not show the most current updates or changes to the ERC. It is essential to consult with a tax expert or check out the main IRS website for the most current and accurate information relating to eligibility, declaring procedures, and readily available assistance.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on earnings paid to all workers whether they in fact worked or not. To put it simply, even if the.
employees worked full time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
allowed only for earnings paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not just cash payments however also a portion of the cost of employer.
supplied healthcare. Worksheet 4 Adjusted Employee Retention Credit
Employers can be right away repaid for the credit by reducing the quantity of payroll taxes they.