Lets talk first about Employee Retention Credit Mergers And Acquisitions :
Our team here what do these guys doing everyone in this space is helping teach people about ERC and uh always provide a beautiful breakfast and have individuals really learn about the program we ought to head to the space where we have the ability to display some of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars literally Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the method I mean you know if you simply 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 suggest think of the number of actual customers 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 confirmed 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 understand the check is gone for sure which’s when they pay so they do not pay anything till they actually receive the cash they do not pay bottom line Wonder trust anything till this letter is validated the check is on the way they transfer it into their bank account and they can truly trust Wonder trust that the procedure has been finished and the number of you believe you’ve processed because you started this we have to do with 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 professionals 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 speaking about something truly essential today the staff member retention credit which the majority of you have never heard of I certainly hadn’t become aware of it up until really recently and found out a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Concepts they’re the largest 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 provide me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I enjoy this program it’s going away soon you got to learn everything about it let’s talk employee 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 huge distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund okay go on sorry I simply have to make certain we got that point I mean that’s a huge distinction a loan versus cash cash I like cash cash that’s what we’re speaking about 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 original cares Act is the ERC and yes Kevin it is a gorgeous 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 individual had to be a staff member so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have actually owned a company but it’s based upon you having W-2 workers 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 qualified so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 proper 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 two and three of 2021. okay so that’s how it’s measured you have to be on the W-2 during that period now let’s talk my preferred part money how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s salary to an optimum 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 an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus because the turmoil 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 five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 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 lot of cash it is now there’s a caution here the PPP cash would have to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize 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 state hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s huge certainly now the huge concern is why does no one know about this because look when I initially heard about this when I initially fulfilled Josh you understand I’ve got lots of financial investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make lots of many investments in entrepreneurs of which lots of suffered through the pandemic when I initially became aware of this I called BS I do not think it due to the fact that I use 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 which were well should have and we utilized them carefully to stay alive throughout the pandemic so when I became aware of this I stated nah it can’t hold true however when I dug around I even contacted us to my political leader buddies Guv Senators they didn’t understand about it I suggest that’s how you know that’s how false information is that there’s no details out there then a bunch of individuals informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does no one learn about the worker retention credit you understand what’s interesting you’re speaking about the banks Kevin since in the PPP loan process 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 procedure process that’s all um and here there was turmoil due to the fact that keep in mind in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might not do ERC in the initial program and when they changed 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 she or he’s never done it in the past 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 prior to unless you have an account that entered into this service and bottom line my firm Kevin has been in business since 2009 and we have actually been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our huge big business clients have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
company whose company is fully or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is readily available to all companies despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the employer has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying salaries 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 salaries varies by whether an employer had, typically, basically than.
100 staff members in 2019.
Business that specialize in ERC filing help generally provide knowledge and assistance to assist organizations browse the intricate process of declaring the credit. They can provide numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Mergers And Acquisitions
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based upon factors such as your industry, earnings, and operations. They can help identify if you fulfill the requirements for the credit and recognize the optimum credit quantity you can claim.
Documents and Computation: ERC filing services will assist in collecting the required documentation, such as payroll records and monetary statements, to support your claim. They will also help calculate the credit amount based upon qualified salaries and other qualifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these business can review your past payroll records and financials to determine prospective opportunities for retroactive credits. They can help you amend prior income tax return to declare these refunds.
Filing Support: Companies focusing on ERC filings will prepare and submit the needed types and documents in your place. This includes completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have actually evolved over time. These companies remain upgraded with the latest changes and guarantee that your filings adhere to the most existing guidelines. If the Internal revenue service demands additional information or carries out an audit related to your ERC claim, they can likewise provide continuous assistance.
It is very important to research and veterinarian any company offering ERC filing help to guarantee their trustworthiness and expertise. Search for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax experts who provide ERC submitting support.
Bear in mind that while these companies can offer valuable help, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to encourage companies to keep and pay their staff members 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 employers, including for-profit organizations, tax-exempt companies, and specific governmental entities. To qualify, companies must meet one of two criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As mentioned previously, for 2021, a substantial decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately 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 percentage (up to 70%) of qualified 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 received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they received a PPP loan. The same wages can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, enabling qualified employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision offers an opportunity for businesses to modify prior-year income tax return and receive refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work tax returns, normally Type 941. If the credit exceeds the quantity of work taxes owed, the excess can be refunded to the company.
It’s important to note that the ERC arrangements and eligibility criteria have developed with time. The very best course of action is to seek advice from a tax expert or go to the official internal revenue service website for the most updated and in-depth info concerning the ERC, including any recent legislative modifications or updates.
To get approved for the ERC, a company must fulfill one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a considerable decline is defined 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% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and businesses that received a PPP loan may have limitations on claiming the credit.
The process for claiming the ERC involves finishing the needed kinds and including the credit on your employment tax return (generally Type 941). The exact time it takes to process the credit can differ based upon several aspects, including the complexity of your service and the workload of the IRS. It’s recommended to consult with a tax professional for assistance specific to your scenario.
There are a number of business that can help with the process of claiming the ERC. Some popular business that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the info supplied here is based on general understanding and may not show the most current updates or modifications to the ERC. It’s important to talk to a tax expert or go to the official IRS website for the most current and accurate information regarding eligibility, claiming treatments, and readily available help.
Less than 100. If the company had 100 or less staff members usually in 2019, then the credit is based.
on wages paid to all workers whether they in fact worked or not. In other words, even if the.
staff members 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 staff members usually in 2019, then the credit is.
enabled just for wages paid to workers who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not just money payments however likewise a part of the expense of company.
supplied healthcare. Employee Retention Credit Mergers And Acquisitions
Companies can be instantly compensated for the credit by minimizing the amount of payroll taxes they.