Lets talk first about Can You Get The Employee Retention Credit And A Ppp Loan :
Our group here what do these men doing everybody in this room is helping teach individuals about ERC and uh constantly offer a lovely breakfast and have individuals truly learn more about the program we should head to the space where we have the ability 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 millions of dollars actually 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 suggest you know 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 mean it’s just I imply 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 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 have the ability to track it you understand when you
get this you know the check is chosen sure which’s when they pay so they don’t pay anything until they actually get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they transfer it into their checking account and they can really trust Wonder trust that the process has actually been completed and how many you think you have actually processed since you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you need 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly crucial today the employee retention credit which most of you have actually never heard of I definitely had not heard of it until extremely recently and discovered a lot about it since this is probably the lowest cost of capital for any small company anywhere
anytime if you have workers in between 5 and five hundred so I have actually got the professional 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 difficult this isn’t like PPP we just contact your bank supervisor 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 all of us about it and how to get it and why I have actually become yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to learn 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 created the cares Act and the cares act provided businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash cash payroll tax refund alright go on sorry I just have to make sure we got that point I mean that’s a huge difference a loan versus money money I like money money 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 beautiful hard 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 individual had to be a worker so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for workers right you had to have owned a business however 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 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 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you get back per staff member 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 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s salary to a maximum of 7 thousand per quarter how did that happen um they just changed the rules in.
2021 versus because the turmoil 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 occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caveat 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 decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP cash 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 employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the huge concern is why does no one know about this due to the fact that appearance when I first found out about this when I first satisfied Josh you understand I’ve got lots of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which lots of 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 very easy to do we had our CEOs call the banks they got their loans and that were well deserved 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 political leader good friends Governor Senators they didn’t learn about it I imply that’s how you understand that’s how misinformation is that there’s no details out there then a lot of individuals informed me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does nobody 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 extremely 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 process that’s all um and here there was mayhem due to the fact that remember in the original cares act you might refrain from doing both programs so if you had done PPP you could refrain from doing ERC in the initial 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 made it clear to anyone about how to.
do this does your CFO know how to do this not really he or she’s never done it previously do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll company your accountant no your accountant’s never done this before unless you have an account that went into this organization and bottom line my company Kevin has actually stayed in business considering that 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge huge corporate clients have dealt with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax unemployment tax work chance 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 developed to encourage.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in incomes paid by an.
Since of COVID-19 or whose gross receipts, company whose organization is fully or partially suspended.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
businesses who take Small Business Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is totally or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. When the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It is effective for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying incomes varies by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that focus on ERC filing help usually provide know-how and assistance to assist organizations navigate the intricate process of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Can You Get The Employee Retention Credit And A Ppp Loan
Eligibility Evaluation: These business will assess your business’s eligibility for the ERC based on elements such as your market, revenue, and operations. They can assist determine if you meet the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Calculation: ERC filing services will help in collecting the needed documentation, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit amount based on eligible earnings and other qualifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Support: Business focusing on ERC filings will prepare and submit the needed kinds and paperwork in your place. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC policies and guidance have progressed gradually. These companies remain upgraded with the most recent changes and make sure that your filings comply with the most current standards. If the IRS demands additional details or conducts an audit related to your ERC claim, they can likewise supply ongoing assistance.
It’s important to research and veterinarian any business offering ERC filing support to ensure their trustworthiness and proficiency. Search for established companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax specialists who provide ERC submitting support.
Remember that while these companies can offer important support, it’s always a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to encourage businesses to keep and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, consisting of for-profit companies, tax-exempt companies, and particular governmental entities. To certify, employers need to fulfill one of two criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As discussed earlier, for 2021, a significant decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease 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 quantity amounts to a percentage (approximately 70%) of certified salaries paid to employees, including particular health insurance expenses. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, services that received a Paycheck Protection Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. Nevertheless, the same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, enabling eligible companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to change prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, generally Form 941. The excess can be refunded to the company if the credit exceeds the quantity of employment taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have actually evolved gradually. The best strategy is to speak with a tax professional or visit the main internal revenue service website for the most up-to-date and comprehensive information regarding the ERC, including any current legislative changes or updates.
To receive the ERC, a service must meet among the following requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease 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 defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is offered to businesses of all sizes, including tax-exempt companies, but there are some exceptions. For example, federal government entities and companies that received a PPP loan may have constraints on claiming the credit.
The procedure for declaring the ERC involves finishing the needed kinds and including the credit on your work income tax return (typically Type 941). The exact time it takes to process the credit can differ based on numerous elements, including the complexity of your business and the workload of the internal revenue service. It’s suggested to talk to a tax expert for assistance particular to your scenario.
There are several business that can help with the procedure of declaring the ERC. These include accounting companies, tax advisory services, and payroll provider. Some popular companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and contact these companies directly to inquire about their services and costs.
Please note that the info offered here is based upon general knowledge and might not reflect the most recent updates or changes to the ERC. It is necessary to consult with a tax expert or check out the official internal revenue service website for the most current and accurate details regarding eligibility, declaring procedures, and available assistance.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on earnings paid to all employees whether they really worked or not. Simply put, even if the.
staff members worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
enabled just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments but also a portion of the cost of employer.
supplied healthcare. Can You Get The Employee Retention Credit And A Ppp Loan
Employers can be instantly reimbursed for the credit by minimizing the amount of payroll taxes they.