Discover: Employee Retention Credit Supply Chain Disruption 2023

Lets talk first about Employee Retention Credit Supply Chain Disruption :

Our group here what do these guys doing everyone in this room is assisting teach individuals about ERC and uh constantly supply a lovely breakfast and have individuals actually discover the program we must head to the room where we have the ability to display a few of the checks that we are getting for business and I want to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I imply you know if you simply start to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I mean consider how many real customers 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 verified and the check is on the mail in the mail from the IRS heading to the consumer so that’s how you’re able to track it you know when you

get this you know the check is chosen sure which’s when they pay so they don’t pay anything until they in fact get the money they don’t pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their bank account and they can really rely on Wonder trust that the process has actually been completed and the number of you think you’ve processed considering that you started this we’re about 35 000 of these for

 


about 6 billion dollars wow so clearly they understand what they’re doing which’s what you require 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 Terrific here you’re at my YouTube channel we’re discussing something really crucial today the worker retention credit which the majority of you have actually never ever heard of I certainly hadn’t become aware of it until really just recently and discovered a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company 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 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 phone your bank manager and state offer me a loan it does not 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 become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge difference 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 alright go on sorry I simply have to make sure we got that point I imply that’s a big distinction a loan versus cash money I like cash money that’s what we’re discussing 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 original cares Act is the ERC and yes Kevin it is a beautiful tough check in the mail where you get real 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 employee retention credit that individual needed to be an employee so I’m going to make the Presumption this cash 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 a company but it’s based upon you having W-2 staff members in America not 10.99. so as long as you had W-2 employees 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 first six months of 2021 on the W-2 right so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. alright so that’s how it’s measured you need to be on the W-2 throughout that period now let’s talk my preferred part cash just 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 specific Kevin is 50 of the employee’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s salary to a maximum of 7 thousand per quarter how did that occur um they simply altered the rules in.

2021 versus because 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 up to 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 since that’s a lot of money it is now there’s a caution here the PPP cash would have to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the big concern is why does no one know about this due to the fact that look when I first found out about this when I initially fulfilled Josh you know I’ve got lots of investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous many investments in entrepreneurs of which lots of suffered through the pandemic when I initially heard 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 extremely easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we utilized them carefully to survive during the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even called to my political leader pals Guv Senators they didn’t learn about it I indicate that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of people informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody know about the employee retention credit you understand what’s fascinating you’re discussing the banks Kevin because in the PPP loan procedure the federal government made it really 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 just process procedure that’s all um and here there was turmoil due to the fact that remember 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 original program and when they altered the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never 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 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 accountant no your accountant’s never ever done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually been in business because 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a great deal of our huge big business clients have dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.

The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
employer whose organization is totally or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Accessibility.
1. The credit is available to all employers regardless of size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To qualify, the company has to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.

Estimation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of qualifying incomes differs by whether an employer had, typically, basically than.
100 staff members in 2019.

Business that concentrate on ERC filing assistance generally supply knowledge and assistance to help services navigate the intricate procedure of claiming the credit. They can offer various services, including:.

 

How is the employee retention credit calculated? Employee Retention Credit Supply Chain Disruption

Eligibility Assessment: These companies will evaluate your company’s eligibility for the ERC based upon elements such as your market, revenue, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can claim, they can assist determine.
Documents and Computation: ERC filing services will help in collecting the essential documents, such as payroll records and financial statements, to support your claim. They will also help determine the credit quantity based upon eligible wages and other certifying expenses.
Retroactive Claim Review: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to identify potential chances for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and send the required forms and documentation in your place. This consists of finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have actually evolved gradually. These business stay updated with the most recent changes and ensure that your filings comply with the most current guidelines. They can also supply ongoing assistance if the IRS requests extra details or carries out an audit related to your ERC claim.
It is essential to research study and veterinarian any company using ERC filing help to ensure their credibility and competence. Try to find established firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who provide ERC submitting assistance.

Bear in mind that while these companies can supply valuable assistance, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified 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 measures. The objective of the ERC is to encourage businesses to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.

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 particular governmental entities. To qualify, employers must meet one of two 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 receipts. As mentioned previously, for 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly 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 portion (as much as 70%) of certified incomes paid to workers, including specific health insurance costs. 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, services that got a Paycheck Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they got a PPP loan. The very same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, enabling eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers 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 employment tax returns, generally Type 941. If the credit exceeds the amount of work taxes owed, the excess can be refunded to the company.
It is very important to keep in mind that the ERC provisions and eligibility criteria have developed with time. The best strategy is to talk to a tax expert or visit the main internal revenue service site for the most current and comprehensive details concerning the ERC, consisting of any recent legislative changes or updates.

To get approved for the ERC, a business should satisfy among the following criteria:.

Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. Government entities and companies that received a PPP loan might have constraints on declaring the credit.

The procedure for claiming the ERC includes completing the necessary types and including the credit on your work tax return (normally Kind 941). The exact time it takes to process the credit can differ based on numerous elements, including the intricacy of your business and the work of the internal revenue service. It’s advised to speak with a tax professional for guidance particular to your circumstance.

There are numerous companies that can help with the procedure of declaring the ERC. Some popular companies that offer support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.

Please note that the information supplied here is based on general understanding and may not reflect the most recent updates or changes to the ERC. It is essential to speak with a tax professional or go to the official internal revenue service site for the most updated and accurate details regarding eligibility, claiming procedures, and available assistance.

Less than 100. If the employer had 100 or less employees on average in 2019, then the credit is based.
on incomes paid to all workers whether they really worked or not. To put it simply, even if the.
employees worked full-time and earned money for full-time work, the company still gets the credit.
Greater than 100. If the company had more than 100 staff members typically in 2019, then the credit is.
permitted only for wages paid to employees who did not work during the calendar quarter.
In both cases, “incomes” includes not simply money payments however likewise a portion of the expense of employer.
offered healthcare. Employee Retention Credit Supply Chain Disruption
Payment.

Employers can be right away reimbursed for the credit by reducing the quantity of payroll taxes they.