Lets talk first about Outstanding Employee Retention Credit Center :
Our team here what do these guys doing everyone in this room is helping teach people about ERC and uh always offer a lovely breakfast and have individuals really learn more about the program we must head to the room where we are able to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh numerous millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I indicate you understand if you just begin to take a look at a few of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s just I imply consider the number of real 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 internal revenue service heading to the client so that’s how you’re able to track it you understand when you
receive this you understand the check is gone for sure and that’s when they pay so they do not pay anything until they really receive the cash they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they deposit it into their bank account and they can truly trust Wonder trust that the procedure has actually been completed and the number of you believe you’ve processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you need professionals 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 discussing something truly essential today the staff member retention credit which the majority of you have actually never ever heard of I definitely had not heard of it up until very just recently and discovered a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have employees in between five 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 Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply contact 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 all of us 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 find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created 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 practically everyone it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I simply have to make certain we got that point I suggest that’s a big distinction a loan versus cash money I like money cash 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 initial cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get actual cash from the IRS all right so let’s speak about how it works because it seems like to me if it’s a if it’s worker retention credit that individual had 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 investors it’s for workers right you had to have actually owned a business however it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 workers 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 have to be on payroll for the first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part money how much can you return per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus since the mayhem 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 as much as 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you create 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 since that’s a lot of cash it is now there’s a caution here the PPP money would need 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 typically Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred employees 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 huge question is why does no one learn about this because look when I initially heard about this when I first met Josh you know I have actually got great deals of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not 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 been worthy of and we used them carefully to survive throughout the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my politician buddies Governor Senators they didn’t learn about it I mean that’s how you know that’s how misinformation is that there’s no info out there then a bunch of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody learn about the employee retention credit you know what’s intriguing you’re talking about the banks Kevin since 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 country 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 turmoil because remember in the original cares act you might not do both programs so if you had done PPP you could not do ERC in the initial program and when they changed the law in 2021 the banks were not doing ERC due to the fact that 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 really she or he’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 business your accounting professional no your accountant’s never done this before unless you have an account that went into this organization and bottom line my firm Kevin has stayed in business because 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have worked with bottom line to recuperate 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 property property tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
Because of COVID-19 or whose gross receipts, company whose company is completely or partially suspended.
decline by more than 50%.
1. The credit is available to all employers no matter size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small company Loans.
2. To qualify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. Once the.
employer’s gross receipts 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 qualifying incomes paid up to $10,000 in total.
It works for salaries paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether a company had, typically, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing help generally provide knowledge and assistance to assist services browse the complicated process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Outstanding Employee Retention Credit Center
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based on elements such as your market, profits, and operations. If you fulfill the requirements for the credit and identify the maximum credit quantity you can declare, they can assist determine.
Documentation and Calculation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and financial statements, to support your claim. They will likewise help compute the credit amount based upon eligible incomes and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can examine your past payroll records and financials to determine prospective chances for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the needed forms and documentation in your place. This consists of completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have evolved in time. These business stay updated with the latest changes and make sure that your filings abide by the most existing guidelines. If the IRS requests extra details or performs an audit related to your ERC claim, they can also provide ongoing assistance.
It’s important to research study and veterinarian any business providing ERC filing help to guarantee their reliability and know-how. Look for recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax professionals who use ERC submitting support.
Keep in mind that while these business can provide important assistance, it’s always an excellent idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and guarantee accurate filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage companies to keep and pay their employees during the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, companies should satisfy one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. As pointed out earlier, for 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a percentage (approximately 70%) of certified wages paid to staff members, consisting of specific health insurance expenditures. 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: Initially, organizations that got an Income Defense Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they got a PPP loan. However, the very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, permitting eligible employers to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive provision offers an opportunity for organizations to change prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, generally Kind 941. The excess can be reimbursed to the employer if the credit surpasses the quantity of work taxes owed.
It is essential to keep in mind that the ERC provisions and eligibility criteria have actually progressed in time. The very best course of action is to speak with a tax professional or go to the main IRS website for the most comprehensive and updated details regarding the ERC, including any current legal changes or updates.
To receive the ERC, a company needs to fulfill one of the following criteria:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and organizations that received a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC involves finishing the essential types and including the credit on your work income tax return (usually Type 941). The exact time it takes to process the credit can vary based upon numerous aspects, including the intricacy of your company and the workload of the internal revenue service. It’s suggested to speak with a tax professional for assistance specific to your scenario.
There are a number of business that can help with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some widely known companies that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these business straight to ask about their fees and services.
Please keep in mind that the information offered here is based on basic knowledge and might not show the most current updates or modifications to the ERC. It is essential to consult with a tax expert or check out the official internal revenue service website for the most updated and precise details concerning eligibility, claiming treatments, and readily available assistance.
Less than 100. If the company had 100 or fewer staff members usually in 2019, then the credit is based.
on wages paid to all workers whether they actually worked or not. Simply put, even if the.
employees worked full-time and got paid 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.
allowed only for wages paid to workers who did not work during the calendar quarter.
In both cases, “wages” includes not just cash payments but also a portion of the expense of company.
offered healthcare. Outstanding Employee Retention Credit Center
Employers can be immediately reimbursed for the credit by decreasing the quantity of payroll taxes they.