Lets talk first about Employee Retention Credit And Infrastructure Bill :
Our group here what do these guys doing everybody in this space is assisting teach people about ERC and uh constantly supply a lovely breakfast and have people really learn more about the program we ought to head to the space where we are able to display some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I mean you know if you just begin to 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 suggest it’s simply I indicate 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 validated the numbers are verified 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 know when you
receive this you understand the check is gone for sure and that’s when they pay so they do not pay anything up until they in fact receive the cash they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the method they deposit it into their checking account and they can truly trust Wonder trust that the procedure has actually been completed and the number of you think you have actually processed given that you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they know what they’re doing and that’s what you require 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 speaking about something really essential today the worker retention credit which the majority of you have actually never ever heard of I definitely had not heard of it up until really just recently and learned a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have employees between 5 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 Ideas 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 offer me a loan it doesn’t 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’ve ended up being yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing very soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used companies three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody 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 money money payroll tax refund alright go on sorry I just have to ensure we got that point I suggest that’s a huge distinction a loan versus cash cash I like money money 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 initial cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get real cash from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual needed 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 workers right you had to have owned a company but it’s based on you having W-2 staff members 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 eligible 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 proper so there were 6 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 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my preferred part cash how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be exact Kevin is 50 of the staff member’s wage to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that occur um they simply changed 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 staff members 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 create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is since that’s a lot of money it is now there’s a caveat here the PPP cash would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s state 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 huge obviously now the big concern is why does nobody understand about this due to the fact that appearance when I first became aware of this when I first met Josh you know I’ve got lots of investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard about this I called BS I do not think it due to the fact that 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 which were well deserved and we used them sensibly to stay alive 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 friends Governor Senators they didn’t understand about it I suggest that’s how you know that’s how misinformation is that there’s no details out there then a lot of people told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one understand about the employee retention credit you understand what’s interesting you’re speaking about the banks Kevin because in the PPP loan procedure the federal government made it very 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 process 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 turmoil because keep in mind in the initial cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not 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 understand how to do this not actually she or he’s never done it in the past 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 business your accountant no your accounting professional’s never done this prior to unless you have an account that went into this service and bottom line my firm Kevin has been in business considering that 2009 and we have actually been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate customers have actually worked with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
company whose company is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all companies regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s organization is completely or partially suspended by federal government order due to COVID-19.
during 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 invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity 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 qualifying incomes differs by whether an employer had, usually, more or less than.
100 workers in 2019.
Business that focus on ERC filing help normally provide proficiency and assistance to help companies navigate the complex process of claiming the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit And Infrastructure Bill
Eligibility Assessment: These companies will examine your company’s eligibility for the ERC based on aspects such as your market, profits, and operations. If you fulfill the requirements for the credit and recognize the optimum credit amount you can declare, they can assist figure out.
Documentation and Estimation: ERC filing services will assist in collecting the needed documentation, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based upon eligible salaries and other qualifying expenses.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for prior quarters, these companies can evaluate your past payroll records and financials to determine prospective chances for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and send the essential kinds and paperwork on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually evolved gradually. These companies remain updated with the latest modifications and ensure that your filings comply with the most current guidelines. If the IRS requests additional details or carries out an audit associated to your ERC claim, they can likewise provide ongoing assistance.
It is necessary to research and veterinarian any company offering ERC filing assistance to guarantee their trustworthiness and know-how. Search for established companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax specialists who offer ERC filing support.
Keep in mind that while these business can supply valuable help, it’s constantly a great concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified decisions and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate organizations to maintain and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified companies, consisting of for-profit companies, tax-exempt organizations, and certain governmental entities. To qualify, employers should fulfill one of two requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As pointed out previously, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is defined 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 right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a percentage (approximately 70%) of certified wages paid to workers, consisting of particular health insurance expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got an Income Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. The exact same earnings can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, allowing qualified employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides an opportunity for services to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, typically Type 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the employer.
It is essential to keep in mind that the ERC arrangements and eligibility criteria have actually developed over time. The best course of action is to consult with a tax expert or check out the main internal revenue service website for the most in-depth and current information regarding the ERC, including any recent legal changes or updates.
To get approved for the ERC, an organization needs to satisfy one of the following requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt companies, but there are some exceptions. For instance, federal government entities and organizations that received a PPP loan might have restrictions on claiming the credit.
The process for claiming the ERC includes completing the essential forms and including the credit on your work tax return (usually Kind 941). The exact time it takes to process the credit can differ based upon numerous aspects, consisting of the complexity of your business and the work of the IRS. It’s suggested to seek advice from a tax professional for guidance specific to your situation.
There are numerous companies that can help with the process of claiming the ERC. Some popular companies that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information provided here is based upon basic understanding and might not show the most recent updates or changes to the ERC. It is necessary to seek advice from a tax professional or check out the main internal revenue service site for the most accurate and up-to-date info regarding eligibility, declaring treatments, and readily available help.
Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on salaries paid to all employees whether they actually worked or not. In other words, even if the.
staff members 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 staff members on average in 2019, then the credit is.
allowed just for salaries paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply money payments but also a portion of the expense of employer.
provided health care. Employee Retention Credit And Infrastructure Bill
Companies can be instantly compensated for the credit by reducing the quantity of payroll taxes they.