Lets talk first about Do I Qualify For The Employee Retention Credit 2022 :
Our team here what do these guys doing everybody in this space is assisting teach people about ERC and uh always provide a beautiful breakfast and have people truly learn more about the program we should head to the room where we are able to display a few of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the way I mean you know if you just start to take a 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 suggest it’s simply I indicate think of 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 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 have the ability to track it you know when you
receive this you understand the check is chosen sure which’s when they pay so they do not pay anything until they really get the cash they don’t 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 truly rely on Wonder trust that the process has actually been completed and how many you think you’ve processed because you started 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 Fantastic here you’re at my YouTube channel we’re talking about something actually crucial today the staff member retention credit which the majority of you have never ever become aware of I certainly hadn’t become aware of it up until extremely just recently and found out a lot about it since this is most likely the most affordable expense of capital for any small company anywhere
anytime if you have staff members between five and five hundred so I have actually 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 not easy this isn’t like PPP we just call up your bank supervisor and say provide 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’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 just 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 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund okay go on sorry I simply need to make sure we got that point I imply that’s a huge difference a loan versus cash cash I like cash 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 original cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get real money from the internal revenue service all right so let’s speak about 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 a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned an organization however it’s based upon you having W-2 workers 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 need 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 appropriate so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined 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 employee 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 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 income to an optimum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the chaos of the pandemic so they wanted to even get more to keep those employees 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 then what occurs 21 000 Max in 2021 oh that’s how you come up with 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 since that’s a great deal of money it is now there’s a caveat here the PPP money would have to be lowered from the twenty six 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 money somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York 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 substantial obviously now the big concern is why does nobody understand about this since appearance when I first heard about this when I first met Josh you understand I have actually got great deals of financial investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make numerous lots of investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I do not believe it since 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 which 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 be true but when I dug around I even called to my politician friends Guv Senators they didn’t know about it I mean that’s how you know that’s how misinformation is that there’s no info out there then a bunch of people told me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one know about the worker retention credit you understand what’s fascinating you’re discussing the banks Kevin since in the PPP loan procedure 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 simply process procedure that’s all um and here there was mayhem because remember in the initial cares act you might not do both programs so if you had done PPP you might refrain from doing ERC in the original program and when they altered 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 any person about how to.
do this does your CFO understand how to do this not truly he or she’s never ever done it previously 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 company your accounting professional no your accountant’s never done this prior to unless you have an account that entered into this service and bottom line my company Kevin has been in business given that 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big huge business clients have actually worked with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit created to motivate.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose service is totally or partially suspended.
decline by more than 50%.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is fully or partly suspended by 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. When the.
employer’s gross receipts go above 80% of an equivalent 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 salaries paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of certifying earnings varies by whether a company had, usually, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing support normally supply expertise and support to assist companies navigate the intricate process of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Do I Qualify For The Employee Retention Credit 2022
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon factors such as your market, revenue, and operations. They can help identify if you fulfill the requirements for the credit and determine the maximum credit amount you can declare.
Documents and Estimation: ERC filing services will assist in collecting the required paperwork, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit quantity based upon qualified earnings and other qualifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the necessary forms and paperwork on your behalf. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have evolved over time. These business stay updated with the most recent changes and ensure that your filings comply with the most existing guidelines. They can also offer continuous support if the IRS demands extra information or conducts an audit related to your ERC claim.
It is necessary to research study and veterinarian any business using ERC filing assistance to ensure their trustworthiness and expertise. Search for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax experts who use ERC filing assistance.
Keep in mind that while these business can supply important help, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and ensure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage services to retain and pay their staff members 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 companies, consisting of for-profit services, tax-exempt companies, and particular governmental entities. To qualify, employers must meet one of two criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As pointed out earlier, for 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices compared to the very 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 amount is equal to a portion (as much as 70%) of certified earnings paid to workers, including specific health plan 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: Initially, companies that received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. Nevertheless, the exact same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, allowing qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for organizations to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Type 941. The excess can be refunded to the employer if the credit exceeds the amount of employment taxes owed.
It is necessary to note that the ERC provisions and eligibility criteria have developed in time. The best course of action is to talk to a tax expert or visit the official IRS website for the most comprehensive and updated info regarding the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, a company must satisfy one of the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross invoices. For 2021, a substantial decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. For instance, government entities and organizations that got a PPP loan might have constraints on declaring the credit.
The process for claiming the ERC involves finishing the necessary forms and including the credit on your work tax return (normally Kind 941). The exact time it requires to process the credit can differ based on numerous factors, including the intricacy of your organization and the workload of the internal revenue service. It’s advised to speak with a tax expert for assistance particular to your circumstance.
There are numerous companies that can assist with the procedure of declaring the ERC. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information supplied here is based upon general knowledge and may not show the most current updates or changes to the ERC. It is essential to seek advice from a tax expert or go to the official internal revenue service website for the most current and accurate details regarding eligibility, claiming procedures, and readily available assistance.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on earnings paid to all workers whether they really worked or not. To put it simply, even if the.
workers worked full-time and made money for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
allowed only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just money payments however likewise a portion of the cost of employer.
provided healthcare. Do I Qualify For The Employee Retention Credit 2022
Employers can be instantly compensated for the credit by minimizing the amount of payroll taxes they.