Lets talk first about Eidl Loan And Employee Retention Credit :
Our group here what do these guys doing everyone in this space is assisting teach people about ERC and uh constantly supply a gorgeous breakfast and have people truly learn more 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 business and I want to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the method I indicate you know if you simply start to take a 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 mean it’s simply I indicate think of how many real 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 client so that’s how you’re able to track it you understand when you
receive this you know the check is opted for sure and that’s when they pay so they don’t pay anything up until they really get the money they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they transfer it into their savings account and they can truly trust Wonder trust that the process has been completed and how many you think you have actually processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing which’s what you require you require specialists on the other end of the phone to process this and get it to where you get one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something actually important today the staff member retention credit which most of you have never become aware of I definitely hadn’t heard of it up until really just recently and found out a lot about it because this is probably 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 expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just contact your bank manager and state offer me a loan it does not 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 have actually ended up being yes the Ambassador and paid spokesperson for this I like this program it’s going away very soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations three chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund fine go on sorry I simply need to ensure we got that point I indicate that’s a big distinction a loan versus cash cash I like money cash that’s what we’re talking about 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real cash from the internal revenue service all right so let’s talk about how it works because it sounds like to me if it’s a if it’s staff member retention credit that person had to be a worker 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 staff members right you had to have actually owned a business but it’s based upon you having W-2 workers 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 first six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk 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. all right so that’s how it’s measured you have 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 staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that take place um they just altered the rules in.
2021 versus due to the fact that the turmoil 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 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 six thousand dollars per staff member that is because that’s a lot of money it is now there’s a caveat here the PPP money would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s big certainly now the big concern is why does nobody know about this because look when I first found out about this when I initially satisfied Josh you know I have actually got lots of financial investments in lots of business I’m a significant advocate for entrepreneurship in America and make lots of numerous investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I don’t believe it due to the fact that I use the PPP we went through the cash center Banks to get it it was very 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 stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my politician buddies Guv Senators they didn’t learn about it I mean that’s how you understand that’s how false information 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 nobody learn about the employee retention credit you understand what’s interesting you’re discussing the banks Kevin since in the PPP loan procedure 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 huge 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 procedure process that’s all um and here there was chaos due to the fact that remember in the original cares act you could 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 not doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not truly he or she’s never ever done it before 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 business your accounting professional no your accounting professional’s never done this before unless you have an account that went into this organization and bottom line my firm Kevin has been in business because 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our huge huge corporate clients have dealt with bottom line to recover other government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, company whose company is totally or partially suspended.
decline by more than 50%.
1. The credit is available to all employers no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It works for salaries paid after March 13th and prior to December 31, 2020.
The definition of certifying wages varies by whether an employer had, on average, more or less than.
100 staff members in 2019.
Business that focus on ERC filing support normally offer proficiency and support to assist organizations navigate the complex process of claiming the credit. They can use various services, including:.
How is the employee retention credit calculated? Eidl Loan And Employee Retention Credit
Eligibility Assessment: These business will examine your organization’s eligibility for the ERC based upon factors such as your market, earnings, and operations. They can help identify if you meet the requirements for the credit and determine the maximum credit quantity you can claim.
Documents and Calculation: ERC filing services will assist in collecting the essential paperwork, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit quantity based on eligible salaries and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you change prior income tax return to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and submit the necessary types and documentation on your behalf. This includes finishing Form 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have actually evolved in time. These companies stay upgraded with the latest changes and make sure that your filings adhere to the most existing standards. They can likewise provide ongoing support if the internal revenue service requests additional info or performs an audit related to your ERC claim.
It is essential to research and vet any business offering ERC filing support to guarantee their trustworthiness and knowledge. Look for recognized firms with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax specialists who offer ERC filing support.
Bear in mind that while these companies can offer valuable support, it’s always a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to motivate services to maintain and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit organizations, tax-exempt organizations, and specific governmental entities. To qualify, companies need to fulfill one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease 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.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (up to 70%) of qualified incomes paid to employees, including certain health plan expenses. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Protection Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 allows services to declare the ERC even if they received a PPP loan. Nevertheless, the exact same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, allowing qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision provides a chance for businesses to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their work tax returns, normally Kind 941. If the credit exceeds the quantity of work taxes owed, the excess can be reimbursed to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have actually evolved in time. The best strategy is to talk to a tax expert or check out the official internal revenue service website for the most in-depth and current details concerning the ERC, including any current legislative changes or updates.
To qualify for the ERC, a service should fulfill one of the following requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
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 exact same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, consisting of tax-exempt companies, however there are some exceptions. Government entities and organizations that got a PPP loan may have constraints on declaring the credit.
The procedure for claiming the ERC includes completing the needed types and consisting of the credit on your employment tax return (typically Kind 941). The exact time it takes to process the credit can differ based upon several aspects, consisting of the complexity of your business and the work of the IRS. It’s suggested to seek advice from a tax professional for guidance specific to your circumstance.
There are numerous companies that can help with the procedure of claiming the ERC. Some well-known business that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information offered here is based on general understanding and might not reflect the most current updates or modifications to the ERC. It is very important to consult with a tax expert or go to the official internal revenue service website for the most precise and current info concerning eligibility, claiming treatments, and offered assistance.
Less than 100. If the company had 100 or less workers on average in 2019, then the credit is based.
on salaries paid to all workers whether they actually 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. The credit is if the employer had more than 100 workers on average in 2019.
permitted only for incomes paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” includes not simply cash payments but likewise a part of the expense of employer.
provided healthcare. Eidl Loan And Employee Retention Credit
Employers can be right away reimbursed for the credit by lowering the quantity of payroll taxes they.