Lets talk first about Employee Retention Credit Tax Refund Worth $26K Per Employee :
Our group here what do these men doing everyone in this space is assisting teach people about ERC and uh constantly supply a gorgeous breakfast and have people really find out about the program we should head to the room where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I suggest you know if you just start to take a 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 mean it’s just I suggest think of the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is confirmed the numbers are confirmed and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you have the ability to track it you know when you
receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything until they in fact receive the cash they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their savings account and they can really trust Wonder trust that the process has been completed and how many you believe you’ve processed because you started this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly 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 among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re speaking about something actually important today the staff member retention credit which the majority of you have actually never ever become aware of I definitely had not heard of it up until really recently and found out a lot about it since this is probably the lowest cost of capital for any small company anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just call up your bank manager and state give 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’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used services 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 big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund okay go on sorry I simply need to ensure we got that point I imply that’s a huge distinction a loan versus cash cash I like money 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 hard check in the mail where you get actual money from the internal revenue service all right so let’s talk about how it works because it seems like to me if it’s a if it’s employee retention credit that person needed to be a worker so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have actually owned a company but it’s based on you having W-2 employees 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six 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 four of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part cash how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income to a maximum of seven thousand per quarter how did that take place um they just altered 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 up to five thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is since that’s a great deal of money it is now there’s a caution here the PPP money would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge undoubtedly now the big concern is why does no one understand about this because look when I first found out about this when I initially met Josh you know I have actually got lots of investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I don’t think it since I utilize 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 and that were well deserved and we used them wisely to survive during the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my politician pals Guv Senators they didn’t know about it I indicate that’s how you know that’s how misinformation is that there’s no details out there then a lot of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody understand about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin because in the PPP loan procedure the federal government made it extremely clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 due to the fact that keep in mind in the original cares act you might refrain from doing both programs so if you had actually done PPP you could not do ERC in the initial 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 ever 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 ever done it in the past 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 prior to unless you have an account that went into this service and bottom line my firm Kevin has stayed in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our big huge business customers have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and use tax joblessness tax work opportunity 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 motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, company whose business is totally or partly suspended.
decrease by more than 50%.
1. The credit is offered to all employers despite size including tax exempt organizations. There are.
only two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is completely or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are 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 the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying incomes 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 earnings differs by whether an employer had, on average, basically than.
100 staff members in 2019.
Business that focus on ERC filing support normally offer expertise and support to help businesses navigate the complex procedure of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Tax Refund Worth $26K Per Employee
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based on factors such as your market, profits, and operations. If you satisfy the requirements for the credit and determine the optimum credit amount you can claim, they can assist identify.
Paperwork and Computation: ERC filing services will assist in gathering the essential paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help determine the credit amount based on qualified wages and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these companies can evaluate your past payroll records and financials to determine prospective opportunities for retroactive credits. They can help you modify previous tax returns to claim these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the required types and paperwork on your behalf. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have evolved over time. These business remain updated with the most recent modifications and ensure that your filings comply with the most existing guidelines. They can likewise supply continuous support if the internal revenue service requests additional information or conducts an audit related to your ERC claim.
It is necessary to research study and vet any business providing ERC filing assistance to guarantee their credibility and knowledge. Try to find recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax professionals who provide ERC submitting support.
Bear in mind that while these companies can provide important support, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed decisions and make sure accurate filings.
The Worker 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 services to keep and pay their workers throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit businesses, tax-exempt organizations, and certain governmental entities. To certify, employers should fulfill one of two criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As pointed out previously, for 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease 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.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (approximately 70%) of certified earnings paid to employees, including certain health insurance expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they received a PPP loan. Nevertheless, the same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, enabling qualified companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work tax returns, typically Type 941. The excess can be reimbursed to the company if the credit exceeds the amount of work taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have progressed over time. The best course of action is to speak with a tax professional or go to the official IRS website for the most current and detailed details relating to the ERC, including any recent legal modifications or updates.
To receive the ERC, a business needs to meet among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross receipts. For 2021, a significant decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and organizations that got a PPP loan might have constraints on declaring the credit.
The process for declaring the ERC involves finishing the needed forms and including the credit on your employment income tax return (typically Form 941). The exact time it takes to process the credit can vary based upon a number of elements, consisting of the intricacy of your company and the workload of the IRS. It’s recommended to consult with a tax professional for guidance specific to your scenario.
There are several business that can help with the process of claiming the ERC. Some popular companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information offered here is based on general understanding and might not show the most current updates or modifications to the ERC. It’s important to consult with a tax professional or check out the official IRS site for the most updated and precise details concerning eligibility, claiming procedures, and readily available assistance.
Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on salaries paid to all staff members whether they in fact worked or not. In other words, even if the.
workers worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
enabled only for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just cash payments however also a portion of the cost of company.
offered healthcare. Employee Retention Credit Tax Refund Worth $26K Per Employee
Companies can be right away repaid for the credit by reducing the amount of payroll taxes they.