Lets talk first about Employee Retention Credit Specialists :
Our team here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly offer a stunning breakfast and have people truly discover the program we must head to the space where we have the ability to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of millions of dollars literally Kevin numerous 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 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 suggest it’s simply I imply think of how many 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 validated 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 know when you
receive this you know the check is opted for sure which’s when they pay so they do not pay anything until they really receive the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they transfer it into their checking account and they can really rely on Wonder trust that the procedure has been ended up and the number of you believe you have actually processed considering that you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re speaking about something actually essential today the employee retention credit which most of you have actually never ever heard of I certainly had not become aware of it until extremely recently and discovered a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members in 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 Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply call your bank manager and say provide 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 ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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.
correct the money cash payroll tax refund all right go on sorry I simply need to make certain we got that point I imply that’s a big distinction a loan versus cash cash I like money cash that’s what we’re discussing 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 lovely hard check in the mail where you get actual cash from the IRS all right so let’s speak about how it works since it seems like to me if it’s a if it’s worker retention credit that person needed to be an employee so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for workers right you needed to have owned a business however it’s based upon you having W-2 workers in America not 10.99. As long as you had W-2 staff members 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 have 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 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s determined you have to be on the W-2 during that period now let’s talk my favorite part cash just how much can you return per employee that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the employee’s salary to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to a maximum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus because the mayhem of the pandemic so they wished 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 approximately 5 thousand Max and after that what happens 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 employee that is since that’s a great deal of money it is now there’s a caution 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 reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace 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 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 certainly now the big concern is why does nobody learn about this since look when I initially found out about this when I first satisfied Josh you know I have actually got lots of investments in great deals of companies I’m a significant supporter for entrepreneurship in America and make many lots of investments in business owners of which lots of suffered through the pandemic when I initially heard about this I called BS I do not believe it because I utilize 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 utilized them carefully to survive throughout the pandemic so when I found out about this I said nah it can’t be true however when I dug around I even contacted us to my politician friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how misinformation is that there’s no info out there then a lot of people informed me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody know about the staff member retention credit you know what’s interesting you’re talking about the banks Kevin since in the PPP loan process the federal government made it extremely clear that if you desired 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 due to the fact that remember in the initial cares act you could not do both programs so if you had actually done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not really she or he’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 done this prior to unless you have an account that entered into this business and bottom line my firm Kevin has actually been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have dealt with bottom line to recover other government programs we have actually 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 federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Since of COVID-19 or whose gross invoices, company whose business is totally or partially suspended.
decrease by more than 50%.
Accessibility.
1. The credit is readily available to all companies despite size consisting of tax exempt companies. 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 fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s business 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 similar quarter in 2019. When the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether a company had, typically, more or less than.
100 workers in 2019.
Companies that focus on ERC filing support usually offer expertise and support to help businesses browse the complicated process of claiming the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Specialists
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based upon aspects such as your industry, revenue, and operations. They can help identify if you satisfy the requirements for the credit and identify the optimum credit amount you can claim.
Paperwork and Estimation: ERC filing services will help in collecting the required paperwork, such as payroll records and monetary declarations, to support your claim. They will also assist compute the credit quantity based upon eligible wages and other qualifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these companies can review your previous payroll records and financials to recognize prospective opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and submit the required types and paperwork in your place. This consists of finishing Kind 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have actually progressed over time. These business stay updated with the latest changes and make sure that your filings abide by the most current guidelines. If the IRS demands additional details or carries out an audit related to your ERC claim, they can likewise offer ongoing support.
It is very important to research and vet any company using ERC filing support to ensure their credibility and competence. Look for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax professionals who provide ERC submitting assistance.
Keep in mind that while these companies can offer important support, it’s constantly an excellent idea to have a basic understanding of the ERC requirements and process yourself. This will assist you make notified choices and ensure precise filings.
The Staff Member 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 encourage companies to retain 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 offered to qualified companies, consisting of for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers must fulfill one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decline in gross invoices. As discussed earlier, for 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly 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 percentage (as much as 70%) of certified earnings paid to employees, including certain health plan expenses. The optimum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, organizations that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they got a PPP loan. Nevertheless, the exact same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and boosted, allowing qualified employers to claim the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for services to change prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, usually Form 941. The excess can be reimbursed to the company if the credit surpasses the amount of employment taxes owed.
It is necessary to keep in mind that the ERC provisions and eligibility requirements have actually developed gradually. The best strategy is to speak with a tax professional or visit the official internal revenue service site for the most in-depth and current details relating to the ERC, including any current legislative changes or updates.
To qualify for the ERC, an organization should meet among the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross invoices. For 2021, a significant decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and organizations that got a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC includes finishing the needed types and including the credit on your work income tax return (normally Form 941). The exact time it takes to process the credit can differ based upon numerous elements, including the intricacy of your business and the workload of the IRS. It’s recommended to speak with a tax professional for guidance specific to your scenario.
There are a number of companies that can assist with the procedure of declaring the ERC. Some widely known business that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details offered here is based upon basic understanding and may not show the most current updates or changes to the ERC. It is necessary to seek advice from a tax expert or visit the official IRS site for the most accurate and updated info regarding eligibility, claiming treatments, and offered help.
Less than 100. The credit is based if the company had 100 or less workers on average in 2019.
on wages paid to all staff members whether they really worked or not. In other words, even if the.
employees worked full time and earned money 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.
allowed only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply money payments but likewise a portion of the expense of company.
offered healthcare. Employee Retention Credit Specialists
Payment.
Employers can be instantly repaid for the credit by decreasing the quantity of payroll taxes they.