Lets talk first about Is Employee Retention Credit Available For 4Th Quarter 2021 :
Our team here what do these people doing everyone in this space is helping teach people about ERC and uh constantly supply a beautiful breakfast and have individuals really find out about the program we should head to the room where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars actually Kevin numerous millions of 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 simply start to take a look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I imply think about how many 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 verified and the check is on the mail in the mail from the internal revenue service heading to the customer so that’s how you’re able to track it you know when you
get this you know the check is gone for sure which’s when they pay so they don’t pay anything till they in fact get the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their checking account and they can really trust Wonder trust that the procedure has actually been ended up and how many you think you have actually processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing which’s what you require you require 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 talking about something actually crucial today the staff member retention credit which most of you have actually never ever become aware of I definitely had not become aware of it till really just recently and learned 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 between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder 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 simply call up 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 enjoy this program it’s going away soon you got to learn everything about it let’s talk employee 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 businesses three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash money payroll tax refund all right go on sorry I just have to make sure we got that point I suggest that’s a big difference a loan versus cash money I like money money 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 original cares Act is the ERC and yes Kevin it is a lovely 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 sounds like to me if it’s a if it’s employee retention credit that person needed to be a staff member 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 staff members right you had to have owned a business however it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 workers 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 appropriate so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you return per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the staff member’s salary to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus since the chaos 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 as much as 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 five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caution here the PPP money would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money 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 employees 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 question is why does nobody learn about this because appearance when I first heard about this when I first met Josh you understand I’ve got great deals of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially found out about this I called BS I don’t believe it since I use the PPP we went through the cash 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 used them wisely to stay alive during the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my politician friends Guv Senators they didn’t know about it I imply that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals informed 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 understand about the worker retention credit you understand what’s interesting you’re talking about the banks Kevin because in the PPP loan process the federal government made it really clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the huge 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 process process that’s all um and here there was chaos due to the fact that keep in mind in the original cares act you might not do both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered the law in 2021 the banks were refraining from doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the government never ever made it clear to anyone 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 don’t do it the payroll business yeah a few of them are doing it as a payroll business your accountant no your accounting professional’s never ever done this prior to unless you have an account that entered into this company and bottom line my firm Kevin has actually stayed in business because 2009 and we have actually been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big big corporate customers have dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose business is totally or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all employers regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross invoices go above 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 qualifying wages paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying salaries varies by whether a company had, typically, basically than.
100 staff members in 2019.
Business that concentrate on ERC filing help normally supply knowledge and support to assist businesses navigate the intricate process of claiming the credit. They can offer different services, consisting of:.
How is the employee retention credit calculated? Is Employee Retention Credit Available For 4Th Quarter 2021
Eligibility Assessment: These companies will evaluate your service’s eligibility for the ERC based on aspects such as your industry, earnings, and operations. If you satisfy the requirements for the credit and recognize the maximum credit quantity you can claim, they can assist determine.
Documentation and Computation: ERC filing services will help in collecting the essential documentation, such as payroll records and monetary declarations, to support your claim. They will likewise help determine the credit amount based on qualified incomes and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you change prior tax returns to claim these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and send the needed kinds and documentation on your behalf. This consists of completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have actually progressed with time. These companies remain updated with the latest changes and make sure that your filings comply with the most current standards. They can also provide ongoing assistance if the internal revenue service requests extra information or performs an audit related to your ERC claim.
It’s important to research and vet any business offering ERC filing help to ensure their reliability and proficiency. Search for established firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax experts who offer ERC filing assistance.
Bear in mind that while these business can provide valuable support, it’s constantly a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to encourage businesses to maintain and pay their workers during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit services, tax-exempt companies, and certain governmental entities. To qualify, employers need to fulfill one of two requirements:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross receipts. As pointed out previously, for 2021, a substantial decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of qualified salaries paid to workers, including particular health insurance costs. 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 got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they received a PPP loan. The same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, permitting qualified employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision offers an opportunity for businesses to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, usually Form 941. The excess can be refunded to the employer if the credit goes beyond the amount of work taxes owed.
It is essential to keep in mind that the ERC arrangements and eligibility criteria have actually evolved in time. The best course of action is to speak with a tax professional or check out the official IRS site for the most up-to-date and in-depth info relating to the ERC, consisting of any recent legislative modifications or updates.
To get approved for the ERC, a service must satisfy one of the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a significant decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, however there are some exceptions. For example, government entities and companies that got a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC involves completing the required types and consisting of the credit on your work tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon numerous aspects, consisting of the complexity of your company and the workload of the IRS. It’s recommended to consult with a tax professional for assistance particular to your scenario.
There are several business that can help with the process of claiming the ERC. Some well-known business that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the details provided here is based on basic understanding and might not reflect the most current updates or modifications to the ERC. It is necessary to talk to a tax professional or go to the official IRS website for the most accurate and updated information relating to eligibility, claiming procedures, and available help.
Less than 100. The credit is based if the company had 100 or less staff members on average in 2019.
on wages paid to all employees whether they actually worked or not. Simply put, even if the.
staff members worked full time and earned money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
allowed just for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply cash payments however likewise a part of the expense of employer.
provided health care. Is Employee Retention Credit Available For 4Th Quarter 2021
Employers can be instantly reimbursed for the credit by lowering the amount of payroll taxes they.