Lets talk first about Is Innovation Refunds A Scam :
Our team here what do these guys doing everybody in this room is helping teach individuals about ERC and uh always provide a beautiful breakfast and have people truly learn more about the program we need to head to the space 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 numerous millions of 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 method I indicate you understand if you simply start 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 just I imply consider 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 verified the numbers are confirmed and the check is on the mail in the mail from the IRS heading to the client so that’s how you’re able to track it you know when you
receive this you understand the check is chosen sure and that’s when they pay so they do not pay anything till they really receive the cash they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the method they transfer it into their bank account and they can really rely on Wonder trust that the procedure has been completed and the number of you believe you have actually processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’s what you require you need 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 Wonderful here you’re at my YouTube channel we’re discussing something really crucial today the employee retention credit which most of you have actually never ever heard of I definitely hadn’t heard of it up until extremely just recently and discovered a lot about it because this is most likely the lowest cost of capital for any small business anywhere
anytime if you have staff members in between 5 and five hundred so I have actually got the expert 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 simply phone your bank manager and state 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 spokesperson for this I love this program it’s going away very soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash cash payroll tax refund alright go on sorry I just have to make sure we got that point I indicate that’s a big distinction a loan versus money cash I like cash money that’s what we’re discussing 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 initial cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real cash from the IRS all right so let’s talk about how it works due to the fact that it seems like to me if it’s a if it’s employee retention credit that person had to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have actually owned a company however 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first six months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and 3 of 2021. fine 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 return per worker that was on a W-2 in those 6 quarters so the estimation in 2020 to be specific Kevin is 50 of the employee’s salary to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s income 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 approximately 5 thousand Max and then 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 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a great deal 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 two you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s state hypothetically you owned a dining establishment in New York 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 IRS so it’s huge certainly now the huge concern is why does no one learn about this because appearance when I first heard about this when I first satisfied Josh you understand I have actually got lots of financial investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make numerous lots of investments in business owners of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe it because I use the PPP we went through the cash 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 sensibly to stay alive during the pandemic so when I heard about this I said nah it can’t hold true however when I dug around I even called to my political leader good friends Governor Senators they didn’t understand about it I suggest that’s how you understand that’s how false information is that there’s no information out there then a bunch of people informed me well you can’t get it due to the fact that you took the PPP also not real so let’s ask Josh why does no one learn about the worker retention credit you understand what’s fascinating you’re talking about the banks Kevin because in the PPP loan process the federal government made it very 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 simply process process that’s all um and here there was chaos since remember in the original cares act you might refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC because 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 understand how to do this not really he or she’s never 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 company your accountant no your accountant’s never done this prior to unless you have an account that entered into this business and bottom line my company Kevin has been in business because 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a great deal of our big big corporate customers have actually worked with bottom line to recover other 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 federal government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
employer whose company is fully or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all companies no matter size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the equivalent quarter in 2019. When the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether a company had, on average, more or less than.
100 staff members in 2019.
Business that concentrate on ERC filing support generally offer competence and assistance to assist organizations navigate the complex process of declaring the credit. They can provide different services, including:.
How is the employee retention credit calculated? Is Innovation Refunds A Scam
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based upon aspects such as your industry, income, and operations. If you fulfill the requirements for the credit and identify the optimum credit quantity you can declare, they can assist identify.
Paperwork and Estimation: ERC filing services will help in gathering the required paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help determine the credit quantity based on qualified incomes and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for prior quarters, these business can examine your past payroll records and financials to determine possible opportunities for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the needed types and paperwork in your place. This includes completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have progressed in time. These business stay upgraded with the most recent modifications and guarantee that your filings comply with the most present standards. They can likewise offer ongoing assistance if the IRS requests extra details or carries out an audit related to your ERC claim.
It’s important to research study and vet any business offering ERC filing support to ensure their credibility and know-how. Look for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax specialists who offer ERC submitting support.
Remember that while these business can provide important help, it’s always a great concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate companies to keep and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified employers, consisting of for-profit services, tax-exempt organizations, and specific governmental entities. To certify, employers need to meet one of two requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decline in gross receipts compared to the very 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 receipts compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a percentage (approximately 70%) of certified earnings paid to employees, including specific health insurance costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they got a PPP loan. The same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting eligible companies to declare the credit for qualified salaries paid as far back as March 13, 2020. This retroactive provision supplies a chance for organizations to amend prior-year income tax return and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, typically Type 941. The excess can be reimbursed to the employer if the credit exceeds the amount of employment taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have actually evolved in time. The best course of action is to seek advice from a tax professional or check out the main IRS website for the most in-depth and up-to-date info concerning the ERC, consisting of any current legal changes or updates.
To receive the ERC, a service should meet among the following criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a substantial decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts 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 available to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. Federal government entities and businesses that got a PPP loan may have restrictions on claiming the credit.
The procedure for declaring the ERC involves finishing the necessary kinds and including the credit on your work tax return (typically Kind 941). The exact time it requires to process the credit can vary based on several factors, including the intricacy of your company and the workload of the internal revenue service. It’s advised to talk to a tax expert for assistance specific to your scenario.
There are a number of companies that can aid with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some widely known companies that provide support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and contact these business straight to inquire about their charges and services.
Please note that the information offered here is based upon general knowledge and might not show the most current updates or changes to the ERC. It is essential to speak with a tax expert or visit the official internal revenue service site for the most current and accurate information concerning eligibility, declaring treatments, and readily available assistance.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on incomes paid to all workers whether they in fact worked or not. To put it simply, even if the.
staff members 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 employees on average in 2019.
permitted just for salaries paid to workers who did not work during the calendar quarter.
In both cases, “wages” consists of not simply cash payments however likewise a portion of the expense of employer.
supplied health care. Is Innovation Refunds A Scam
Companies can be immediately compensated for the credit by reducing the quantity of payroll taxes they.