Lets talk first about Employee Retention Credit Loan Provider :
Our group here what do these guys doing everyone in this space is assisting teach individuals about ERC and uh always offer a beautiful breakfast and have people truly learn more about the program we should head to the space where we are able to show a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I imply you know if you just start to take a look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I imply think of the number of real clients that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are validated and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you’re able to track it you know when you
receive this you know the check is gone for sure which’s when they pay so they don’t pay anything till they really get the cash 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 truly trust Wonder trust that the procedure has actually been finished and how many you think you’ve processed given that you began 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 need you need professionals 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 discussing something truly essential today the employee retention credit which the majority of you have actually never heard of I definitely hadn’t become aware of it till really recently and discovered a lot about it since this is most likely the most affordable expense of capital for any small business anywhere
anytime if you have workers between 5 and five hundred so I’ve 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 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 tell us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to discover everything about it let’s talk staff member 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 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone 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.
remedy the money cash payroll tax refund alright go on sorry I just need to make sure we got that point I suggest that’s a big distinction a loan versus cash money I like cash money that’s what we’re speaking 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 lovely tough check in the mail where you get actual money from the IRS all right so let’s speak about how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual had to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you had to have actually owned a business but it’s based on you having W-2 workers 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 6 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 four of 2020 and you had quarters one 2 and three of 2021. okay so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part cash just how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the employee’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus because the mayhem of the pandemic so they wished 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 takes place 21 000 Max in 2021 oh that’s how you come up with 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 because that’s a lot of money it is now there’s a caution here the PPP money would need to be minimized from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere 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 employees 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 question is why does nobody understand about this due to the fact that look when I first became aware of this when I initially met Josh you know I have actually got lots of financial investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make lots of lots of financial investments in business owners of which lots of suffered through the pandemic when I first found out about this I called BS I don’t think it due to the fact that I use the PPP we went through the money 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 used them sensibly to stay alive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my political leader pals Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how misinformation is that there’s no information 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 nobody know about the staff member 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 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 country 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 original cares act you could refrain from doing both programs so if you had done PPP you might not do ERC in the initial program and when they altered 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 federal government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never ever done it in the past do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll company your accountant 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 since 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big huge business customers have actually worked with bottom line to recuperate other government programs we have actually done sales tax and utilize 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 staff member retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose company is totally or partially suspended.
decline by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partially suspended by federal 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. As soon as the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation 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 salaries paid after March 13th and before December 31, 2020.
The definition of certifying earnings differs by whether an employer had, on average, more or less than.
100 employees in 2019.
Business that specialize in ERC filing support usually supply expertise and support to help businesses navigate the complex procedure of claiming the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Loan Provider
Eligibility Assessment: These companies will examine your business’s eligibility for the ERC based on aspects such as your market, income, and operations. If you meet the requirements for the credit and identify the optimum credit quantity you can declare, they can help figure out.
Paperwork and Computation: ERC filing services will help in gathering the needed paperwork, such as payroll records and financial statements, to support your claim. They will also help compute the credit quantity based on qualified incomes and other certifying costs.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to identify prospective chances for retroactive credits. They can assist you change prior tax returns to declare these refunds.
Filing Help: Business concentrating on ERC filings will prepare and send the essential types and documents on your behalf. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have progressed in time. These business remain updated with the most recent modifications and guarantee that your filings comply with the most present guidelines. If the Internal revenue service demands additional info or carries out an audit related to your ERC claim, they can likewise supply continuous support.
It’s important to research study and vet any business offering ERC filing assistance to ensure their reliability and knowledge. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who provide ERC filing support.
Bear in mind that while these companies can provide valuable help, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified decisions and ensure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate organizations to retain and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit companies, tax-exempt companies, and specific governmental entities. To qualify, companies should meet one of two requirements:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. As pointed out earlier, for 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the 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 quantity amounts to a percentage (as much as 70%) of qualified salaries paid to staff members, including particular health insurance expenditures. 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, businesses that received an Income Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits companies to declare the ERC even if they got a PPP loan. Nevertheless, the very same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, permitting qualified employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for services to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work income tax return, typically Kind 941. The excess can be refunded to the employer if the credit surpasses the amount of employment taxes owed.
It’s important to note that the ERC arrangements and eligibility requirements have progressed in time. The best course of action is to consult with a tax expert or visit the official IRS site for the most in-depth and updated info concerning the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a company must satisfy among the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a substantial decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is available to businesses of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Government entities and companies that got a PPP loan may have constraints on claiming the credit.
The process for declaring the ERC involves completing the required forms and including the credit on your employment income tax return (usually Form 941). The exact time it takes to process the credit can vary based on numerous elements, including the intricacy of your service and the workload of the internal revenue service. It’s recommended to speak with a tax expert for assistance specific to your situation.
There are numerous companies that can assist with the procedure of declaring the ERC. Some widely known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based upon general understanding and might not reflect the most current updates or changes to the ERC. It’s important to talk to a tax expert or go to the main IRS site for the most precise and updated info regarding eligibility, declaring treatments, and available help.
Less than 100. The credit is based if the company 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 got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 workers usually in 2019, then the credit is.
permitted just for wages paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not just money payments however likewise a portion of the cost of company.
supplied healthcare. Employee Retention Credit Loan Provider
Employers can be right away reimbursed for the credit by reducing the quantity of payroll taxes they.