Lets talk first about Calls About Outstanding Employee Retention Credit :
Our group here what do these men doing everybody in this space is helping teach individuals about ERC and uh constantly provide a stunning breakfast and have individuals actually discover the program we need to head to the room where we have the ability to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh numerous millions of dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I imply you know if you simply start to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s simply I mean consider 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 confirmed the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you understand when you
get this you understand the check is gone for sure and that’s when they pay so they don’t pay anything until they in fact get the cash 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 savings account and they can really trust Wonder trust that the process has actually been completed and how many you believe you’ve processed because you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand 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 talking about something actually important today the employee retention credit which most of you have actually never ever become aware of I certainly had not become aware of it till extremely just recently and discovered a lot about it because this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just phone your bank manager 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 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 everything about it let’s talk employee 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 services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund all right go on sorry I just need to make certain we got that point I imply that’s a big distinction a loan versus money money I like money cash 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 original cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get actual money from the internal revenue service all right so let’s talk about how it works because it sounds like to me if it’s a if it’s employee retention credit that person needed 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 employees right you had to have owned a company but it’s based on you having W-2 employees in America not 10.99. 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 six months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the 6 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 preferred part money how much can you return per employee that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to a maximum of seven thousand per quarter how did that happen 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 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 happens 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 six thousand dollars per employee that is because that’s a lot of cash it is now there’s a caveat here the PPP money would have to be minimized 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 typically 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 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 big certainly now the big question is why does nobody learn about this due to the fact that appearance when I first became aware of this when I initially fulfilled Josh you know I have actually got great deals of investments in lots of business I’m a major supporter for entrepreneurship in America and make numerous lots of investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I do not think it because I utilize the PPP we went through the cash center Banks to get it it was extremely 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 hold true however when I dug around I even called to my politician buddies Governor Senators they didn’t understand about it I indicate that’s how you understand that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s fascinating you’re talking about the banks Kevin since in the PPP loan procedure 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 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 procedure that’s all um and here there was chaos since remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never ever 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 ever done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accountant no your accountant’s never done this before unless you have an account that entered into this business and bottom line my company Kevin has actually stayed in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our huge big corporate clients have actually dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity 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 designed to encourage.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose service is totally or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is available to all employers no matter size including tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services 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 service is fully or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries differs by whether an employer had, typically, basically than.
100 employees in 2019.
Business that concentrate on ERC filing help normally offer proficiency and support to help businesses browse the complex process of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Calls About Outstanding Employee Retention Credit
Eligibility Evaluation: These business will assess your company’s eligibility for the ERC based upon factors such as your industry, income, and operations. If you meet the requirements for the credit and identify the optimum credit amount you can claim, they can assist figure out.
Documents and Calculation: ERC filing services will help in collecting the needed documents, such as payroll records and monetary declarations, to support your claim. They will likewise assist compute the credit amount based on qualified wages and other qualifying expenses.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can evaluate your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you amend previous income tax return to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the essential forms and paperwork in your place. This consists of completing Kind 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have progressed with time. These business stay updated with the latest changes and guarantee that your filings adhere to the most present standards. They can also offer continuous support if the IRS requests additional info or performs an audit related to your ERC claim.
It is very important to research and veterinarian any business offering ERC filing help to guarantee their trustworthiness and competence. Try to find recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax professionals who provide ERC submitting assistance.
Bear in mind that while these business can offer valuable help, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate companies to retain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit companies, tax-exempt companies, and particular governmental entities. To qualify, employers need to fulfill 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 significant decrease in gross invoices. As mentioned previously, for 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross invoices compared to the exact 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 employer’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of qualified incomes paid to workers, including specific health insurance costs. The optimum 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, companies that got an Income Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. The very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling eligible employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to amend prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their employment income tax return, generally Form 941. The excess can be refunded to the company if the credit exceeds the amount of employment taxes owed.
It is necessary to note that the ERC arrangements and eligibility criteria have actually progressed with time. The very best strategy is to talk to a tax professional or visit the main internal revenue service site for the most up-to-date and detailed info regarding the ERC, including any recent legislative modifications or updates.
To receive the ERC, an organization needs to fulfill one of the following requirements:.
Business operations were totally or partly suspended due to a 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% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt companies, but there are some exceptions. For example, government entities and businesses that got a PPP loan might have constraints on declaring the credit.
The procedure for claiming the ERC includes finishing the necessary forms and including the credit on your work income tax return (normally Type 941). The exact time it requires to process the credit can vary based upon a number of factors, consisting of the complexity of your company and the workload of the IRS. It’s advised to speak with a tax professional for assistance specific to your situation.
There are numerous companies that can help with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll provider. Some widely known business that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these business directly to ask about their services and fees.
Please keep in mind that the details provided here is based on basic knowledge and might not show the most recent updates or modifications to the ERC. It is necessary to speak with a tax expert or go to the main internal revenue service website for the most updated and precise details concerning eligibility, claiming treatments, and available assistance.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on salaries paid to all workers whether they actually worked or not. To put it simply, 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 employer had more than 100 employees on average in 2019, then the credit is.
enabled just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply money payments however also a portion of the expense of company.
offered health care. Calls About Outstanding Employee Retention Credit
Employers can be instantly reimbursed for the credit by reducing the quantity of payroll taxes they.