Lets talk first about Employee Retention Credit And Ppp Loans :
Our group here what do these people doing everybody in this room is assisting teach individuals about ERC and uh always supply a stunning breakfast and have people truly discover the program we should head to the room where we are able to show some of the checks that we are getting for companies and I want to see that what is this this is uh numerous countless dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the method I imply you know if you just begin to take a 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 suggest it’s simply I imply consider how many real clients that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are verified and the check is on the mail in the mail from the internal revenue service heading to the consumer so that’s how you have the ability to track it you understand when you
receive this you know the check is gone for sure and that’s when they pay so they don’t pay anything till they in fact receive the cash they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their bank account and they can truly rely on Wonder trust that the procedure has been ended up and the number of you believe you’ve processed given that you began this we have to do with 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 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 really crucial today the staff member retention credit which the majority of you have actually never ever become aware of I definitely had not become aware of it up until extremely recently and discovered 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 workers in between 5 and five hundred so I have actually got the expert 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 difficult this isn’t like PPP we simply call your bank manager and say offer me a loan it does not 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 like this program it’s disappearing soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they developed 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 practically everybody it makes a big difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I simply need to make sure we got that point I imply that’s a big difference a loan versus cash money I like money cash 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 initial cares Act is the ERC and yes Kevin it is a lovely hard 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 individual had to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you had to have actually owned a company but it’s based on you having W-2 employees in America not 10.99. so as long as you had W-2 employees 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 first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the six quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my preferred part money just how much can you return per staff member that was on a W-2 in those six quarters so the computation in 2020 to be exact Kevin is 50 of the worker’s income to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to an optimum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because 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 takes place 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is because that’s a lot of cash it is now there’s a caution here the PPP money would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s say 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 internal revenue service so it’s huge clearly now the huge concern is why does nobody learn about this because look when I initially heard about this when I first met Josh you know I’ve got great deals of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make lots of lots of investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I don’t believe it because 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 deserved and we utilized them carefully to survive during the pandemic so when I heard about this I said nah it can’t be true however when I dug around I even called to my political leader good friends Governor Senators they didn’t learn about it I mean that’s how you know that’s how false information is that there’s no details out there then a bunch of people told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody know about the worker retention credit you know what’s intriguing you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 big banks in our country and they would process procedure 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 chaos since remember in the original cares act you might not do both programs so if you had 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 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 know how to do this not truly 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 some of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this organization and bottom line my firm Kevin has actually stayed in business because 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge big corporate customers have actually dealt with bottom line to recover other government programs we’ve done sales tax and use tax joblessness 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 encourage.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
company whose company is completely or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is readily available to all companies regardless of size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To certify, the company needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is completely 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 receipts go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It is effective for salaries paid after March 13th and before December 31, 2020.
The definition of certifying earnings differs by whether an employer had, usually, basically than.
100 employees in 2019.
Business that specialize in ERC filing help normally offer know-how and support to help businesses browse the complicated procedure of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit And Ppp Loans
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based on elements such as your industry, earnings, and operations. If you fulfill the requirements for the credit and recognize the optimum credit amount you can declare, they can help identify.
Documentation and Estimation: ERC filing services will assist in collecting the essential documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist calculate the credit amount based on eligible salaries and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can review your previous payroll records and financials to determine prospective opportunities for retroactive credits. They can assist you change prior income tax return to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the needed types and documentation in your place. This consists of finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have actually progressed with time. These business remain updated with the latest modifications and ensure that your filings adhere to the most existing standards. They can likewise offer ongoing support if the IRS demands additional details or conducts an audit related to your ERC claim.
It is very important to research and vet any business offering ERC filing support to guarantee their reliability and competence. Try to find recognized firms with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax specialists who use ERC submitting assistance.
Keep in mind that while these business can offer important help, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage organizations to retain and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, including for-profit services, tax-exempt companies, and particular governmental entities. To qualify, companies need to meet one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As pointed out previously, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease 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 company’s share of Social Security taxes. The credit amount is equal to a portion (approximately 70%) of certified salaries paid to employees, including particular 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: Initially, companies that got an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. The very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, allowing eligible companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, generally Kind 941. The excess can be refunded to the employer if the credit exceeds the amount of work taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility criteria have actually developed over time. The very best strategy is to speak with a tax professional or go to the official IRS site for the most in-depth and current info concerning the ERC, including any current legal changes or updates.
To get approved for the ERC, a service should fulfill among the following criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a significant decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt companies, but there are some exceptions. Federal government entities and companies that received a PPP loan may have limitations on declaring the credit.
The process for declaring the ERC involves finishing the necessary types and consisting of the credit on your work tax return (usually Form 941). The exact time it requires to process the credit can differ based upon several aspects, including the complexity of your organization and the workload of the IRS. It’s recommended to consult with a tax expert for assistance specific to your scenario.
There are a number of companies that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some well-known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and call these companies directly to inquire about their services and fees.
Please keep in mind that the information provided here is based on basic knowledge and might not reflect the most recent updates or changes to the ERC. It’s important to consult with a tax professional or check out the official internal revenue service website for the most up-to-date and accurate information concerning eligibility, claiming treatments, and readily available support.
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 workers whether they in fact worked or not. To put it simply, even if the.
employees worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
enabled just for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just money payments however also a portion of the cost of employer.
supplied health care. Employee Retention Credit And Ppp Loans
Employers can be right away compensated for the credit by lowering the amount of payroll taxes they.