Lets talk first about Check Status Of Employee Retention Credit Refund :
Our team here what do these men doing everybody in this space is assisting teach people about ERC and uh constantly offer a beautiful breakfast and have people really discover the program we need to head to the space 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 millions of dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to customers confirming that the check is on the method I suggest you understand if you simply 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 mean it’s simply I mean consider the number of actual customers 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 confirmed 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 understand the check is chosen sure which’s when they pay so they don’t pay anything till they really 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 deposit it into their checking account and they can genuinely trust Wonder trust that the procedure has been finished and how many you believe you have actually processed since you started 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 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 Wonderful here you’re at my YouTube channel we’re talking about something actually essential today the worker retention credit which the majority of you have actually never ever heard of I definitely had not heard of it till very just recently and discovered a lot about it because this is most likely the lowest cost of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I have actually got the specialist with me this is Josh Fox he’s the creator and CEO of bottom line Ideas 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 your bank manager 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 all of us about it and how to get it and why I have actually ended up being yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided companies three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund all right go on sorry I simply have to ensure we got that point I suggest that’s a big distinction a loan versus cash cash I like cash money that’s what we’re talking about 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 original cares Act is the ERC and yes Kevin it is a beautiful difficult check in the mail where you get actual cash from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s worker retention credit that individual had to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have owned an organization however it’s based on 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 have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first six months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 3 and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my favorite part cash just how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s salary to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the employee’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 approximately five thousand Max and after that what happens 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 six thousand dollars per employee that is since that’s a great deal of cash it is now there’s a caveat here the PPP cash would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing usually 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 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 IRS so it’s substantial clearly now the big question is why does nobody learn about this due to the fact that appearance when I first heard about this when I first fulfilled Josh you understand I’ve got lots of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of many investments in business owners 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 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 and that were well should have and we utilized them wisely to survive throughout the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician friends Guv Senators they didn’t learn about it I mean that’s how you know that’s how false information is that there’s no information out there then a lot of individuals informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does no one know about the staff member retention credit you know what’s interesting you’re speaking about the banks Kevin because in the PPP loan procedure the federal government made it extremely 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 process procedure that’s all um and here there was turmoil because keep in mind in the original cares act you might not do both programs so if you had done PPP you might not do ERC in the original program and when they altered 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 made it clear to any person about how to.
do this does your CFO know how to do this not truly he or she’s never done it previously 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 accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this business and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been working with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have worked with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Due to the fact that of COVID-19 or whose gross receipts, employer whose company is totally or partly suspended.
decline by more than 50%.
1. The credit is available to all companies regardless of size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s organization is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. When the.
employer’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying wages paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of qualifying wages varies by whether an employer had, usually, basically than.
100 staff members in 2019.
Business that specialize in ERC filing assistance typically provide proficiency and support to help organizations browse the complex procedure of claiming the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? Check Status Of Employee Retention Credit Refund
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based upon elements such as your industry, income, and operations. They can assist figure out if you meet the requirements for the credit and recognize the maximum credit quantity you can declare.
Documents and Computation: ERC filing services will assist in gathering the needed documents, such as payroll records and financial declarations, to support your claim. They will also help determine the credit amount based upon eligible earnings and other certifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can review your past payroll records and financials to determine prospective opportunities for retroactive credits. They can help you change prior income tax return to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and send the needed types and documents on your behalf. This includes finishing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have actually progressed gradually. These business remain updated with the most recent changes and make sure that your filings comply with the most current guidelines. They can also supply ongoing assistance if the IRS requests extra information or conducts an audit related to your ERC claim.
It is essential to research study and vet any company using ERC filing help to guarantee their trustworthiness and expertise. Search for established firms with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax specialists who offer ERC filing support.
Keep in mind that while these companies can offer important help, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make informed choices and make sure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate services to retain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, employers must fulfill one of two criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross invoices. As mentioned previously, for 2021, a considerable decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of qualified salaries paid to staff members, including specific health insurance expenditures. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got a Paycheck Protection Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they got a PPP loan. The same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and improved, enabling qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to amend prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Form 941. If the credit surpasses the quantity of employment taxes owed, the excess can be reimbursed to the company.
It’s important to note that the ERC arrangements and eligibility criteria have actually developed over time. The very best course of action is to talk to a tax professional or check out the main IRS website for the most updated and in-depth details relating to the ERC, including any current legal changes or updates.
To qualify for the ERC, a company needs to fulfill among the following criteria:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts 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 available to businesses of all sizes, including tax-exempt companies, however there are some exceptions. Federal government entities and organizations that received a PPP loan might have constraints on claiming the credit.
The process for claiming the ERC involves completing the essential kinds and including the credit on your employment income tax return (typically Type 941). The exact time it requires to process the credit can vary based on numerous aspects, consisting of the intricacy of your company and the work of the IRS. It’s recommended to seek advice from a tax expert for assistance specific to your circumstance.
There are several companies that can help with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some widely known companies that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and call these business straight to inquire about their services and fees.
Please note that the info offered here is based on basic understanding and may not show the most recent updates or modifications to the ERC. It is essential to seek advice from a tax expert or check out the official IRS site for the most accurate and up-to-date info relating to eligibility, declaring procedures, and available assistance.
Less than 100. If the company had 100 or less employees on average in 2019, then the credit is based.
on salaries paid to all employees whether they actually worked or not. To put it simply, even if the.
employees worked full-time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees on average in 2019, then the credit is.
permitted only for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not just cash payments however also a portion of the expense of company.
offered healthcare. Check Status Of Employee Retention Credit Refund
Employers can be immediately compensated for the credit by lowering the quantity of payroll taxes they.