Lets talk first about Pending Employee Retention Credit Phone Call :
Our group here what do these people doing everybody in this space is helping teach people about ERC and uh always offer a stunning breakfast and have people truly learn about the program we ought to head to the room where we are able to display some of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I indicate you know if you just 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 imply it’s simply I mean think about 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 verified and the check is on the mail in the mail from the IRS heading to the consumer 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 don’t pay anything till they actually get the cash they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they transfer it into their savings account and they can really trust Wonder trust that the procedure has actually been completed and how many you believe you’ve processed considering that you began this we’re about 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 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 speaking about something actually essential today the employee retention credit which the majority of you have never become aware of I certainly had not become aware of it until really just recently and discovered a lot about it due to the fact that this is probably the most affordable cost of capital for any small company anywhere
anytime if you have workers in between five 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 biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just 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 inform all of us about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I like this program it’s disappearing very soon you got to learn all about it let’s talk employee 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 organizations 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 distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
remedy the cash money payroll tax refund okay go on sorry I simply need to make certain we got that point I suggest that’s a big distinction a loan versus cash cash 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 actual money from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s staff member retention credit that person needed to be an employee 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 staff members right you needed to have owned a company but it’s based upon you having W-2 employees 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 qualified so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well stroll us through the six 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 duration now let’s talk my favorite part money just how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wanted to even get more to keep those staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 approximately 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 5 thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of money it is now there’s a caveat here the PPP money would have to be reduced 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 cash somewhere around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city 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 internal revenue service so it’s huge certainly now the big question is why does no one understand about this because look when I first became aware of this when I first met Josh you understand I have actually got great deals of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make lots of numerous investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I don’t think it since I use the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans and that were well been worthy of and we utilized them carefully 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 contacted us to my political leader pals Governor Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no information out there then a bunch of people told me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody understand about the employee retention credit you understand what’s intriguing you’re discussing the banks Kevin due to the fact that 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 big banks in our nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure process that’s all um and here there was chaos since keep in mind in the original cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never made it clear to anyone about how to.
do this does your CFO understand how to do this not actually she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll company your accountant no your accountant’s never ever done this before unless you have an account that entered into this service and bottom line my firm Kevin has actually stayed in business because 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge huge business clients have dealt with bottom line to recover other federal government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit developed to encourage.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
company whose organization is fully or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is completely or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the comparable quarter in 2019. As soon as the.
employer’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The definition of certifying incomes differs by whether a company had, on average, more or less than.
100 employees in 2019.
Business that concentrate on ERC filing assistance generally offer expertise and support to help organizations navigate the complex process of declaring the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Pending Employee Retention Credit Phone Call
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon factors such as your market, income, and operations. If you meet the requirements for the credit and identify the maximum credit amount you can declare, they can help figure out.
Documentation and Estimation: ERC filing services will help in gathering the essential documents, 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 certifying costs.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these business can examine your previous payroll records and financials to identify possible opportunities for retroactive credits. They can assist you change previous tax returns to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required forms and documents on your behalf. This consists of completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have actually progressed gradually. These business remain upgraded with the latest modifications and make sure that your filings comply with the most current standards. They can also provide ongoing assistance if the IRS demands additional details or performs an audit related to your ERC claim.
It is necessary to research study and veterinarian any company providing ERC filing support to guarantee their credibility and know-how. Search for established firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax professionals who offer ERC submitting support.
Bear in mind that while these business can offer valuable assistance, it’s always a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure accurate filings.
The Worker 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 organizations to keep and pay their staff members during the pandemic, even if their operations have actually been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit companies, tax-exempt organizations, and certain governmental entities. To qualify, employers must satisfy one of two criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As pointed out previously, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline 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 amounts to a percentage (up to 70%) of certified incomes paid to workers, including certain health insurance costs. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that received an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. Nevertheless, the very same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, permitting qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides a chance for companies to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, normally Type 941. The excess can be refunded to the employer if the credit exceeds the amount of work taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have evolved over time. The best strategy is to consult with a tax professional or visit the official IRS site for the most up-to-date and in-depth info regarding the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, a service must fulfill one of the following requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt companies, however there are some exceptions. For instance, federal government entities and organizations that received a PPP loan might have restrictions on claiming the credit.
The process for claiming the ERC involves finishing the essential kinds and consisting of the credit on your work income tax return (typically Form 941). The exact time it takes to process the credit can vary based upon several elements, including the intricacy of your service and the work of the internal revenue service. It’s recommended to talk to a tax expert for guidance particular to your scenario.
There are numerous business that can assist with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some widely known business that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and call these business straight to inquire about their charges and services.
Please keep in mind that the details provided here is based upon basic knowledge and might not show the most current updates or modifications to the ERC. It is essential to seek advice from a tax expert or visit the main IRS site for the most current and accurate details regarding eligibility, claiming procedures, and offered support.
Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on earnings paid to all employees whether they really worked or not. In other words, even if the.
staff members 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 employees on average in 2019, then the credit is.
enabled only for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” includes not just cash payments however also a part of the cost of employer.
supplied healthcare. Pending Employee Retention Credit Phone Call
Companies can be immediately reimbursed for the credit by reducing the quantity of payroll taxes they.