Lets talk first about Employee Retention Credit Under 100 Employees :
Our team here what do these guys doing everybody in this space is assisting teach individuals about ERC and uh constantly supply a stunning breakfast and have people really find out about the program we must head to the room where we are able to display some of the checks that we are getting for companies and I wish 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 validating that the check is on the way I imply you understand if you just begin 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 imply it’s simply I mean consider how many real clients that went through the program yeah this is the very end this is the party 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 customer 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 actually receive the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their savings account and they can truly trust Wonder trust that the process has actually been ended up and the number of you believe you’ve processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you need you require 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 Fantastic here you’re at my YouTube channel we’re talking about something truly important today the worker retention credit which the majority of you have never ever become aware of I definitely hadn’t become aware of it up until really just recently and found out a lot about it because this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I’ve got the specialist 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 hard this isn’t like PPP we simply phone your bank supervisor and state provide 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 ended up being yes the Ambassador and paid spokesperson 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 throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody 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 money money payroll tax refund alright go on sorry I just need to make certain we got that point I imply that’s a big difference a loan versus cash money I like money cash that’s what we’re discussing fine 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 tough check in the mail where you get real money from the IRS all right so let’s speak about how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that person needed to be a staff member so I’m going to make the Assumption 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 owned a business however it’s based on you having W-2 employees 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very 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 2 3 and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you get back per employee that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the chaos 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 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 five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is because that’s a lot of money it is now there’s a caution here the PPP cash would have 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 money someplace around 10 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 workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial certainly now the big concern is why does no one know about this due to the fact that look when I initially found out about this when I first fulfilled Josh you know I’ve got lots of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make many numerous investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not think it because I use 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 which were well should have and we utilized them wisely to survive throughout the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even called to my political leader good friends Governor Senators they didn’t know about it I mean that’s how you understand that’s how misinformation is that there’s no details out there then a bunch of people told me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one know about the employee retention credit you know what’s interesting you’re talking about the banks Kevin because in the PPP loan procedure 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 big 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 just process procedure that’s all um and here there was chaos since keep in mind in the original cares act you could refrain from doing both programs so if you had done PPP you could not do ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC since 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 truly she or he’s never ever done it before do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accountant’s never done this prior to unless you have an account that went into this organization and bottom line my company Kevin has stayed in business given that 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge business customers have worked with bottom line to recover other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other 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 approximately $10,000 in earnings paid by an.
employer whose service is totally or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is readily available to all employers no matter size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s company is totally or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. When the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying earnings differs by whether a company had, on average, basically than.
100 workers in 2019.
Companies that specialize in ERC filing assistance normally supply proficiency and assistance to help businesses browse the complex process of claiming the credit. They can use various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Under 100 Employees
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based on factors such as your market, revenue, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can declare, they can assist identify.
Documentation and Estimation: ERC filing services will help in collecting the required documents, such as payroll records and financial declarations, to support your claim. They will likewise assist calculate the credit quantity based on eligible incomes and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to determine potential chances for retroactive credits. They can help you change prior income tax return to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and submit the needed types and documentation on your behalf. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have actually progressed over time. These business remain updated with the most recent changes and guarantee that your filings comply with the most existing guidelines. They can likewise provide ongoing support if the IRS requests extra details or performs an audit related to your ERC claim.
It’s important to research and veterinarian any business using ERC filing assistance to guarantee their trustworthiness and expertise. Try to find established firms with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax specialists who provide ERC filing assistance.
Bear in mind that while these companies can supply valuable support, it’s constantly an excellent idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate businesses to keep and pay their staff members 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, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To certify, companies must satisfy one of two requirements:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. As discussed earlier, for 2021, a considerable decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices 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 amount is equal to a portion (as much as 70%) of certified incomes paid to employees, consisting of specific health insurance expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that received an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. The very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, permitting qualified employers to claim the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision provides an opportunity for businesses to amend prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work tax returns, normally Kind 941. The excess can be refunded to the employer if the credit surpasses the amount of work taxes owed.
It is very important to note that the ERC arrangements and eligibility requirements have developed over time. The very best course of action is to seek advice from a tax professional or go to the main internal revenue service site for the most in-depth and current info relating to the ERC, including any recent legal changes or updates.
To qualify for the ERC, a company should satisfy one of the following requirements:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. For 2021, a substantial decline is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices 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. Federal government entities and services that got a PPP loan may have constraints on declaring the credit.
The process for declaring the ERC involves finishing the required kinds and consisting of the credit on your employment income tax return (usually Type 941). The exact time it takes to process the credit can vary based upon a number of factors, consisting of the intricacy of your organization and the workload of the IRS. It’s suggested to seek advice from a tax professional for guidance specific to your situation.
There are numerous companies that can help with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some well-known business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these business directly to inquire about their services and charges.
Please note that the details provided here is based upon basic understanding and may not show the most recent updates or changes to the ERC. It is very important to speak with a tax professional or visit the main IRS site for the most accurate and updated info concerning eligibility, declaring treatments, and offered assistance.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on wages paid to all workers whether they in fact worked or not. In other words, even if the.
staff members worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the company had more than 100 employees typically in 2019, then the credit is.
enabled just for earnings paid to employees who did not work during the calendar quarter.
In both cases, “salaries” includes not just cash payments but likewise a portion of the cost of employer.
offered healthcare. Employee Retention Credit Under 100 Employees
Employers can be instantly compensated for the credit by lowering the amount of payroll taxes they.