Lets talk first about Employee Retention Credit Seasonal Employers :
Our group here what do these men doing everybody in this space is helping teach people about ERC and uh constantly offer a beautiful breakfast and have people really learn about the program we must head to the room where we have the ability to show a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of 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 indicate you understand if you just start to take a look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I suggest consider the number of 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 IRS heading to the consumer so that’s how you have the ability to track it you know when you
get this you know the check is chosen sure which’s when they pay so they do not pay anything until they really receive the money they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they deposit it into their bank account and they can genuinely trust Wonder trust that the process has actually been ended up and how many you think you have actually processed considering that you started this we’re about 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you require you need experts 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 Terrific here you’re at my YouTube channel we’re talking about something truly crucial today the worker retention credit which most of you have never become aware of I definitely had not heard of it until very just recently and learned a lot about it due to the fact that this is probably the most affordable cost of capital for any small business anywhere
anytime if you have employees between five 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 Concepts 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 phone your bank supervisor and state give 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’ve become yes the Ambassador and paid representative for this I like this program it’s disappearing very soon you got to find out everything 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 developed the cares Act and the cares act offered services 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund alright go on sorry I simply have to make sure we got that point I suggest that’s a big difference a loan versus money money I like cash cash that’s what we’re speaking 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 tough check in the mail where you get real cash from the IRS all right so let’s speak about how it works because it seems like to me if it’s a if it’s worker retention credit that person had to be an employee 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 employees right you had to have actually owned an organization but it’s based on you having W-2 workers 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 qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and 3 of 2021. fine so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my preferred part money just how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s salary to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased 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 due to the fact that the mayhem of the pandemic so they wished 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 happens 21 000 Max in 2021 oh that’s how you develop 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 because that’s a great deal of money it is now there’s a caution here the PPP cash would have to be lowered 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 someplace around 10 thousand dollars a person so let’s state hypothetically you owned a restaurant in New York 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 substantial undoubtedly now the big concern is why does nobody learn about this since look when I first found out about this when I initially met Josh you understand I’ve got great deals of financial investments in lots of business I’m a major advocate for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of this I called BS I don’t think it due to the fact that I use the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans which were well should have and we used them carefully to survive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my political leader friends Governor Senators they didn’t know about it I imply that’s how you understand that’s how false information is that there’s no info out there then a lot of people informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one understand about the worker retention credit you know what’s interesting you’re speaking about the banks Kevin since 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 country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure procedure that’s all um and here there was mayhem since 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 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 made it clear to anybody about how to.
do this does your CFO know how to do this not actually he or she’s never ever done it in the past do the banks do it nope the banks do not do it the payroll companies yeah a few 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 company Kevin has 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 great deal of our huge huge business customers have actually dealt with bottom line to recuperate other federal government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in incomes paid by an.
Because of COVID-19 or whose gross invoices, employer whose business is fully or partially suspended.
decrease by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the company needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the equivalent quarter in 2019. Once the.
employer’s gross invoices exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of qualifying wages differs by whether an employer had, usually, basically than.
100 workers in 2019.
Business that concentrate on ERC filing assistance normally supply know-how and assistance to help organizations browse the complex process of claiming the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit Seasonal Employers
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. They can help determine if you satisfy the requirements for the credit and recognize the maximum credit quantity you can declare.
Documents and Calculation: ERC filing services will assist in collecting the needed documents, such as payroll records and financial declarations, to support your claim. They will also assist determine the credit quantity based upon qualified salaries and other qualifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you modify previous income tax return to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the necessary kinds and documentation in your place. This includes completing Kind 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have evolved gradually. These companies stay upgraded with the current changes and ensure that your filings adhere to the most present standards. They can likewise provide ongoing assistance if the internal revenue service demands additional information or carries out an audit related to your ERC claim.
It’s important to research study and vet any company offering ERC filing help to guarantee their reliability and expertise. Try to find recognized firms with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who offer ERC submitting assistance.
Keep in mind that while these companies can provide important support, it’s always an excellent idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and guarantee 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 objective of the ERC is to encourage organizations to keep and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible employers, including for-profit services, tax-exempt organizations, and specific governmental entities. To certify, employers should fulfill one of two requirements:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. As mentioned previously, for 2021, a substantial decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decrease in gross invoices 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 amount is equal to a percentage (up to 70%) of certified incomes paid to workers, consisting of particular health plan costs. The maximum credit per employee 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 eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they received a PPP loan. However, the very same wages can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and improved, permitting qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for organizations to modify prior-year tax returns and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work tax returns, normally Type 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the employer.
It’s important to note that the ERC provisions and eligibility criteria have actually progressed in time. The best strategy is to talk to a tax expert or check out the main IRS website for the most up-to-date and comprehensive details concerning the ERC, consisting of any recent legal changes or updates.
To receive the ERC, a company needs to meet one of the following criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a substantial decrease is defined as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, government entities and services that received a PPP loan might have constraints on claiming the credit.
The process for declaring the ERC involves completing the needed types and consisting of the credit on your employment tax return (typically Type 941). The exact time it takes to process the credit can vary based on numerous factors, consisting of the intricacy of your company and the workload of the IRS. It’s suggested to seek advice from a tax expert for assistance particular to your scenario.
There are numerous business that can help with the process of declaring the ERC. Some popular business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information offered here is based on basic knowledge and might not show the most current updates or changes to the ERC. It is necessary to speak with a tax professional or go to the official IRS website for the most updated and accurate details regarding eligibility, declaring treatments, and offered help.
Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on incomes paid to all employees whether they really worked or not. In other words, even if the.
workers worked full-time and made money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
allowed just for salaries paid to employees who did not work throughout the calendar quarter.
In both cases, “earnings” consists of not simply money payments however also a part of the expense of employer.
supplied healthcare. Employee Retention Credit Seasonal Employers
Companies can be right away repaid for the credit by lowering the quantity of payroll taxes they.