Lets talk first about Refundable And Nonrefundable Employee Retention Credit :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh constantly offer a lovely breakfast and have individuals truly find out about the program we need to head to the space where we have the ability to show some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars literally Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I mean you know if you simply start to 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 imply it’s simply 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 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 have the ability to track it you know when you
receive this you know the check is chosen sure which’s when they pay so they don’t pay anything till they in fact get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they deposit it into their savings account and they can truly trust Wonder trust that the procedure has been completed and how many you believe you have actually processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing and that’s what you need you require 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 Wonderful here you’re at my YouTube channel we’re talking about something actually crucial today the worker retention credit which most of you have never ever heard of I certainly had not heard of it until extremely recently and discovered a lot about it since this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles 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 phone your bank manager and say offer 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’ve 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 everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund all right go on sorry I just need to ensure we got that point I mean that’s a huge difference a loan versus money money I like money cash that’s what we’re speaking about 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 gorgeous tough 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 sounds like to me if it’s a if it’s worker 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 investors it’s for employees right you needed to have owned a service but it’s based on you having W-2 staff members 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 six months of 2021 on the W-2 appropriate so there were six 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 2 and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my favorite part cash how much can you get back per worker 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 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus due to the fact that 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 up to 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per employee that is because that’s a lot of cash it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize 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 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 IRS so it’s big undoubtedly now the huge concern is why does nobody understand about this because appearance when I first found out about this when I initially fulfilled Josh you know I’ve got great deals of investments in lots of business I’m a major advocate for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I do not think it since I utilize 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 which were well been worthy of and we used them wisely to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even called to my politician 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 information out there then a lot of people told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody know about the worker retention credit you understand what’s intriguing you’re speaking 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 just procedure process that’s all um and here there was mayhem due to the fact that remember in the original cares act you could not do both programs so if you had actually done PPP you could not do ERC in the original program and when they changed 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 ever made it clear to any person about how to.
do this does your CFO understand how to do this not really he or she’s never done it previously do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this business and bottom line my company Kevin has stayed in business considering that 2009 and we have actually been dealing with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment 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 developed to encourage.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
employer whose business is fully 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 despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the equivalent quarter in 2019. Once the.
company’s gross receipts exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of certifying earnings differs by whether an employer had, typically, basically than.
100 staff members in 2019.
Business that concentrate on ERC filing support typically offer competence and support to assist companies navigate the intricate procedure of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Refundable And Nonrefundable Employee Retention Credit
Eligibility Evaluation: These companies will examine your business’s eligibility for the ERC based on factors such as your market, earnings, and operations. If you fulfill the requirements for the credit and identify the maximum credit amount you can claim, they can assist figure out.
Paperwork and Calculation: ERC filing services will assist in gathering the needed paperwork, such as payroll records and financial statements, to support your claim. They will likewise help determine the credit quantity based on eligible incomes and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to determine possible opportunities for retroactive credits. They can help you modify prior tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the necessary types and documents on your behalf. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have developed gradually. These companies remain upgraded with the most recent modifications and ensure that your filings abide by the most present guidelines. They can likewise offer continuous support if the internal revenue service requests additional information or carries out an audit related to your ERC claim.
It is necessary to research study and veterinarian any company offering ERC filing help to guarantee their reliability and expertise. Look for established companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax professionals who use ERC filing support.
Keep in mind that while these business can provide important support, it’s always a good concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices 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 procedures. The objective of the ERC is to motivate companies to keep and pay their workers during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt organizations, and particular governmental entities. To qualify, employers must meet one of two criteria:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross invoices. As discussed previously, for 2021, a considerable decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly 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 portion (up to 70%) of qualified salaries paid to staff members, consisting of specific health insurance expenses. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables companies to claim the ERC even if they received a PPP loan. The exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and improved, enabling eligible companies to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for companies to modify prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Type 941. If the credit goes beyond the amount of employment taxes owed, the excess can be refunded to the employer.
It is essential to keep in mind that the ERC arrangements and eligibility requirements have actually progressed gradually. The best strategy is to talk to a tax professional or visit the official internal revenue service website for the most detailed and up-to-date information relating to the ERC, consisting of any recent legislative changes or updates.
To get approved for the ERC, an organization should meet one of the following criteria:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. 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 specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. Federal government entities and services that received a PPP loan might have restrictions on claiming the credit.
The process for claiming the ERC involves completing the necessary types and including the credit on your work income tax return (normally Type 941). The exact time it takes to process the credit can differ based on several factors, consisting of the intricacy of your service and the workload of the IRS. It’s recommended to consult with a tax professional for assistance specific to your circumstance.
There are a number of companies that can assist with the procedure of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some popular companies that provide assistance 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 on basic understanding and may not show the most recent updates or modifications to the ERC. It is essential to consult with a tax expert or visit the main IRS site for the most up-to-date and accurate info relating to eligibility, declaring procedures, and available assistance.
Less than 100. If the employer had 100 or less workers on average in 2019, then the credit is based.
on salaries paid to all employees whether they in fact worked or not. Simply put, even if the.
workers worked full-time and made money for full time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 staff members on average in 2019, then the credit is.
permitted only for salaries paid to workers who did not work during the calendar quarter.
In both cases, “wages” includes not just money payments however also a part of the cost of employer.
supplied healthcare. Refundable And Nonrefundable Employee Retention Credit
Employers can be instantly compensated for the credit by lowering the quantity of payroll taxes they.