Lets talk first about Will The Employee Retention Credit Be Extended To 2022 :
Our group here what do these guys doing everybody in this space is assisting teach individuals about ERC and uh always provide a gorgeous breakfast and have people actually learn about the program we need to head to the space where we have the ability to display a few of the checks that we are getting for companies and I want to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the method I mean you understand if you simply start to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I mean it’s simply I indicate consider how many real customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are confirmed 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
receive this you know the check is opted for sure which’s when they pay so they don’t pay anything up until they really receive the cash they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the process has actually been ended up and how many you think you have actually processed since you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you need you need experts 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 speaking about something truly essential today the worker retention credit which the majority of you have never heard of I definitely hadn’t heard of it till really recently and learned a lot about it due to the fact that this is probably the lowest cost of capital for any small company anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Concepts they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply phone your bank supervisor and state 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 become yes the Ambassador and paid representative for this I enjoy this program it’s disappearing very soon you got to learn all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered companies 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 huge distinction right there 2 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 simply have to make sure we got that point I imply that’s a big difference a loan versus cash money 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 lovely hard check in the mail where you get actual cash from the IRS all right so let’s discuss how it works since it sounds like to me if it’s a if it’s employee retention credit that person needed to be an employee so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you needed 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 qualified 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 correct so there were 6 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. okay so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part money how much can you get back per employee that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s wage to a maximum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wanted to even get more to keep those employees 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 develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a lot of money it is now there’s a caveat here the PPP cash would need to be decreased from the twenty six 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 money somewhere around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the huge question is why does nobody learn about this due to the fact that appearance when I first found out about this when I initially fulfilled Josh you understand I have actually got great deals of financial investments in great deals of companies I’m a major advocate for entrepreneurship in America and make many lots of 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 money 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 should have and we used them sensibly to survive during the pandemic so when I heard about this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader buddies Guv 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 informed me well you can’t get it because you took the PPP also not real so let’s ask Josh why does no one know about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin since in the PPP loan process 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 simply process procedure that’s all um and here there was turmoil due to the fact that remember in the initial cares act you could 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 federal government never ever made it clear to any person about how to.
do this does your CFO know how to do this not really he or she’s never ever done it previously 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 accounting professional’s never done this before unless you have an account that entered into this organization and bottom line my firm Kevin has actually been in business because 2009 and we’ve been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big big corporate customers have actually worked with bottom line to recover other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep staff members on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
employer whose organization is fully or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is totally or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. When the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The definition of certifying wages varies by whether an employer had, usually, more or less than.
100 staff members in 2019.
Companies that concentrate on ERC filing assistance generally offer know-how and assistance to assist organizations navigate the complicated procedure of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Will The Employee Retention Credit Be Extended To 2022
Eligibility Evaluation: These business will examine your service’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. If you meet the requirements for the credit and recognize the maximum credit amount you can claim, they can assist determine.
Documents and Computation: ERC filing services will help in gathering the needed documentation, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit quantity based upon qualified earnings and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to recognize prospective chances for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Help: Business concentrating on ERC filings will prepare and send the necessary kinds and documentation in your place. This consists of completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have actually developed in time. These business remain upgraded with the latest modifications and ensure that your filings adhere to the most existing standards. They can likewise offer continuous assistance if the internal revenue service demands extra details or performs an audit related to your ERC claim.
It is essential to research study and veterinarian any business using ERC filing support to guarantee their credibility and competence. Look for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who provide ERC filing assistance.
Remember that while these companies can provide important support, it’s always a great concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices and guarantee precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to motivate businesses to keep and pay their employees during the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and particular governmental entities. To qualify, employers need to meet one of two requirements:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As pointed out previously, for 2021, a significant decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity is equal to a portion (as much as 70%) of certified incomes paid to staff members, including certain health insurance expenditures. The maximum credit per employee 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 permits businesses to declare the ERC even if they received a PPP loan. The very same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, allowing qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for businesses to amend prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work tax returns, typically Form 941. If the credit exceeds the amount of work taxes owed, the excess can be refunded to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have actually progressed with time. The very best strategy is to consult with a tax expert or visit the main internal revenue service site for the most detailed and up-to-date details relating to the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, an organization must satisfy one of the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross receipts 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 very same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For instance, government entities and organizations that got a PPP loan may have restrictions on claiming the credit.
The procedure for claiming the ERC involves completing the essential types and consisting of the credit on your work tax return (usually Form 941). The exact time it requires to process the credit can vary based on several factors, including the complexity of your business and the work of the IRS. It’s advised to consult with a tax expert for assistance specific to your situation.
There are a number of business that can aid with the process of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some well-known business that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and contact these companies straight to inquire about their costs and services.
Please note that the information supplied here is based on general knowledge and may not show the most current updates or modifications to the ERC. It is very important to talk to a tax expert or check out the main internal revenue service website for the most precise and updated details regarding eligibility, declaring procedures, and readily available help.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on wages paid to all workers whether they in fact worked or not. Simply put, even if the.
staff members worked full-time and got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled only for salaries paid to workers who did not work during the calendar quarter.
In both cases, “incomes” consists of not just cash payments however also a part of the cost of company.
offered health care. Will The Employee Retention Credit Be Extended To 2022
Companies can be immediately reimbursed for the credit by reducing the amount of payroll taxes they.