Lets talk first about Employee Retention Credit Consolidated Appropriations Act 2021 :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh always supply a lovely breakfast and have individuals actually learn about the program we need to head to the room where we are able to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I suggest you know if you just start 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 indicate it’s just I suggest consider 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 validated the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you
get this you know the check is opted for sure and that’s when they pay so they don’t pay anything till they really receive the money they do not pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they transfer it into their bank account and they can truly trust Wonder trust that the process has been finished and the number of 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 and that’s what you require you need specialists 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 discussing something truly crucial today the staff member retention credit which the majority of you have never heard of I certainly had not heard of it until very just recently and discovered a lot about it since this is probably the most affordable expense of capital for any small business anywhere
anytime if you have staff members in 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply phone your bank manager and say give 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 have actually become yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services 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 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 cash payroll tax refund okay go on sorry I simply need to make sure we got that point I indicate that’s a huge distinction a loan versus money cash I like cash cash that’s what we’re speaking about all right 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 difficult check in the mail where you get actual cash from the IRS all right so let’s talk about how it works since it sounds like to me if it’s a if it’s staff member retention credit that person needed to be an employee 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 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 eligible so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my favorite part money how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s salary to an optimum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the turmoil 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 five thousand Max and then what takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a lot of money it is now there’s a caveat here the PPP money would need to be lowered 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 money somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big certainly now the big concern is why does nobody know about this since appearance when I initially found out about this when I initially satisfied Josh you understand I have actually got lots of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make numerous many investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of this I called BS I do not think 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 which were well been worthy of and we utilized them sensibly to survive during the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even contacted us to my political leader pals Governor Senators they didn’t know about it I suggest that’s how you understand that’s how false information is that there’s no details out there then a bunch of individuals told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan process 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 big 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 simply process process that’s all um and here there was mayhem since keep in mind in the initial cares act you could refrain from doing both programs so if you had done PPP you could not do ERC in the original 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 made it clear to any person about how to.
do this does your CFO understand how to do this not actually he or she’s never done it in the past do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll business your accountant no your accountant’s never done this before unless you have an account that entered into this service and bottom line my company Kevin has actually been in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge corporate customers have actually worked with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment 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 designed to encourage.
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose organization is fully or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
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 business is fully or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. Once 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 quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for salaries paid after March 13th and prior to December 31, 2020.
The meaning of certifying wages varies by whether a company had, usually, more or less than.
100 workers in 2019.
Business that concentrate on ERC filing support typically supply know-how and assistance to assist companies navigate the complex procedure of claiming the credit. They can provide different services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Consolidated Appropriations Act 2021
Eligibility Assessment: These companies will evaluate your service’s eligibility for the ERC based upon elements such as your industry, earnings, and operations. If you satisfy the requirements for the credit and identify the maximum credit quantity you can claim, they can assist identify.
Paperwork and Computation: ERC filing services will help in collecting the essential documents, such as payroll records and monetary statements, to support your claim. They will also help compute the credit quantity based upon eligible salaries and other certifying expenses.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can review your past payroll records and financials to determine prospective opportunities for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the needed forms and paperwork on your behalf. This includes finishing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have actually progressed over time. These companies stay updated with the latest changes and make sure that your filings abide by the most current guidelines. If the Internal revenue service requests extra details or carries out an audit related to your ERC claim, they can also provide ongoing support.
It is necessary to research study and veterinarian any business using ERC filing support to ensure their reliability and proficiency. Search for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax experts who provide ERC filing support.
Remember that while these companies can offer valuable support, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate companies to maintain and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit services, tax-exempt companies, and specific governmental entities. To qualify, companies must satisfy one of two criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As pointed out previously, for 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a percentage (approximately 70%) of certified earnings paid to workers, including certain health insurance expenses. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they got a PPP loan. The same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, enabling qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision supplies a chance for organizations to amend prior-year income tax return and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, usually Form 941. The excess can be reimbursed to the employer if the credit goes beyond the quantity of work taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have actually progressed with time. The best course of action is to talk to a tax professional or visit the main IRS site for the most detailed and current info regarding the ERC, including any recent legislative changes or updates.
To qualify for the ERC, a service must meet among the following criteria:.
Business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. 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 substantial decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and services that received a PPP loan might have limitations on claiming the credit.
The process for claiming the ERC includes finishing the required kinds and including the credit on your work income tax return (usually Kind 941). The exact time it takes to process the credit can vary based on a number of elements, including the complexity of your organization and the work of the internal revenue service. It’s advised to talk to a tax professional for assistance specific to your circumstance.
There are a number of business that can assist with the process of claiming the ERC. Some widely known companies that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based on basic understanding and may not reflect the most recent updates or changes to the ERC. It is essential to seek advice from a tax expert or visit the official IRS site for the most current and precise info relating to eligibility, claiming treatments, and available assistance.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on incomes paid to all employees whether they really worked or not. To put it simply, even if the.
staff members 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 workers on average in 2019.
allowed just for salaries paid to employees who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but also a portion of the expense of company.
supplied healthcare. Employee Retention Credit Consolidated Appropriations Act 2021
Companies can be right away reimbursed for the credit by minimizing the quantity of payroll taxes they.