Lets talk first about Employee Retention Credit Startup Business :
Our team here what do these people doing everybody in this room is helping teach individuals about ERC and uh always supply a beautiful breakfast and have people really find out about the program we need to head to the room where we have the ability to show some 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 actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I indicate you understand if you just begin to take a look at a few 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 imply think of the number of actual clients that went through the program yeah this is the very end this is the party at the end when the check is verified 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 understand when you
get this you understand the check is gone for 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 validated the check is on the way they transfer it into their bank account and they can really rely on Wonder trust that the procedure has been completed and how many you think you have actually processed considering that you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you need you require experts 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 Fantastic here you’re at my YouTube channel we’re discussing something truly important today the employee retention credit which most of you have actually never ever heard of I definitely had not heard of it until very recently and learned a lot about it because this is most likely 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 specialist with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 contact your bank supervisor and state provide me a loan it does not 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 have actually ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away very soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act used organizations three chances 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 cash cash payroll tax refund all right go on sorry I just have to ensure 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 talking about 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 beautiful tough check in the mail where you get real cash 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 individual had to be a worker so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for shareholders it’s for staff members right you needed to have actually owned a business however 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 6 months of 2021 on the W-2 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s measured you need 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 precise Kevin is 50 of the staff member’s income to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s wage to a maximum of seven thousand per quarter how did that occur um they just altered the rules in.
2021 versus since 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 up to five thousand Max and after that what happens 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 because that’s a great deal of money it is now there’s a caution here the PPP money would need to be decreased 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 ten 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 workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big certainly now the big concern is why does nobody understand about this since appearance when I first became aware of this when I first fulfilled 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 numerous suffered through the pandemic when I first found out about this I called BS I do not believe it since I utilize 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 and that were well should have and we used them wisely to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my politician friends Governor Senators they didn’t learn about it I indicate that’s how you know that’s how misinformation is that there’s no details out there then a bunch of people informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one understand about the staff member retention credit you know what’s interesting you’re talking about the banks Kevin since in the PPP loan procedure 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 huge 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 due to the fact that remember in the original cares act you could not do 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 refraining from doing ERC since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this organization and bottom line my company Kevin has stayed in business considering that 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge big business clients have actually worked with bottom line to recover other government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
company whose company is totally or partly suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all companies despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of certifying wages varies by whether a company had, on average, basically than.
100 staff members in 2019.
Business that specialize in ERC filing support normally offer know-how and assistance to assist services browse the complicated procedure of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Employee Retention Credit Startup Business
Eligibility Evaluation: These companies will examine your company’s eligibility for the ERC based on elements such as your market, revenue, and operations. They can help figure out if you meet the requirements for the credit and identify the optimum credit amount you can claim.
Documentation and Computation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will likewise help determine the credit quantity based on eligible incomes and other certifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can review your previous payroll records and financials to determine prospective chances for retroactive credits. They can help you modify prior income tax return to declare these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the required forms and documents in your place. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have actually evolved gradually. These business remain upgraded with the latest modifications and ensure that your filings abide by the most present guidelines. They can likewise offer ongoing assistance if the IRS demands extra information or carries out an audit related to your ERC claim.
It is very important to research and veterinarian any business offering ERC filing support to guarantee their credibility and proficiency. Look for established firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax professionals who provide ERC submitting support.
Bear in mind that while these business can provide important help, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist 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 steps. The objective of the ERC is to motivate services to retain and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, employers should meet one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross receipts. As mentioned earlier, for 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease 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 right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of qualified wages paid to staff members, consisting of certain health plan expenses. The optimum 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 Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they got a PPP loan. The same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, allowing qualified employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision provides an opportunity for companies to modify prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, typically Form 941. The excess can be reimbursed to the employer if the credit exceeds the quantity of employment taxes owed.
It’s important to note that the ERC provisions and eligibility requirements have developed gradually. The best course of action is to consult with a tax professional or visit the official internal revenue service site for the most up-to-date and comprehensive info concerning the ERC, including any recent legislative changes or updates.
To qualify for the ERC, a company should meet among the following criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. 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 defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is available to services of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and companies that got a PPP loan may have restrictions on claiming the credit.
The procedure for declaring the ERC involves completing the essential kinds and including the credit on your employment income tax return (generally Kind 941). The exact time it requires to process the credit can differ based on several elements, including the intricacy of your organization and the workload of the IRS. It’s advised to seek advice from a tax expert for assistance specific to your situation.
There are several companies that can help with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some well-known business that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and get in touch with these companies straight to inquire about their costs and services.
Please note that the info supplied here is based on basic understanding and might not reflect the most current updates or changes to the ERC. It is essential to consult with a tax expert or check out the official IRS website for the most current and precise details regarding eligibility, claiming treatments, and offered help.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on earnings paid to all employees whether they actually worked or not. In other words, even if the.
workers worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
permitted only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just cash payments however also a part of the cost of company.
supplied healthcare. Employee Retention Credit Startup Business
Companies can be instantly repaid for the credit by lowering the amount of payroll taxes they.