Lets talk first about Employee Retention Credit Webinar 2021 :
Our group here what do these people doing everybody in this room is helping teach individuals about ERC and uh constantly provide a beautiful breakfast and have individuals actually find out about the program we ought to head to the room where we are able to display 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 countless dollars literally Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients verifying that the check is on the method I mean you understand if you simply begin to look at some of these here I imply this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I suggest think of how many actual 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 validated and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you know when you
get this you understand the check is gone for sure which’s when they pay so they do not pay anything until they in fact receive the money they don’t pay bottom line Wonder trust anything until this letter is confirmed the check is on the way they deposit it into their savings account and they can truly trust Wonder trust that the procedure has been finished and how many you think you’ve processed since you began this we have to do with 35 000 of these for
about 6 billion dollars wow so clearly they understand 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 one of these that’s what matters all right Mr Wonderful here you’re at my YouTube channel we’re discussing something truly essential today the worker retention credit which the majority of you have never ever become aware of I certainly had not become aware of it till very recently and learned a lot about it because this is probably the most affordable cost of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I’ve got the professional 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 not easy this isn’t like PPP we just call your bank manager and state offer 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’ve ended up being yes the Ambassador and paid spokesperson for this I love this program it’s disappearing soon you got to learn everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money money payroll tax refund alright go on sorry I simply have to ensure we got that point I indicate that’s a big difference a loan versus money money I like money money 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 gorgeous difficult check in the mail where you get real cash from the internal revenue service all right so let’s speak about how it works because it sounds 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 Presumption this cash is not for the owner not for people on the cap table not for investors it’s for staff members right you had to have actually owned a business however it’s based on you having W-2 workers in America not 10.99. 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 first six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one two and three of 2021. all right so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part money just how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the worker’s wage to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to a maximum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the turmoil 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 as much as 5 thousand Max and then what takes place 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 staff member that is since that’s a great deal of money it is now there’s a caveat here the PPP money would have to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred staff members 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 question is why does nobody learn about this due to the fact that look when I initially became aware of this when I initially met Josh you understand I’ve got great deals of investments in lots of business I’m a major advocate for entrepreneurship in America and make many lots of investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I do not believe it since 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 should have and we utilized them carefully to survive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even contacted us to my political leader pals Guv Senators they didn’t learn about it I suggest that’s how you understand that’s how false information is that there’s no details out there then a bunch of individuals told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody learn about the staff member retention credit you know what’s intriguing you’re speaking about the banks Kevin because in the PPP loan procedure the federal government made it really 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 process 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 chaos since keep in mind in the original cares act you could not do both programs so if you had actually done PPP you could refrain from doing ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not actually he or she’s never ever done it previously 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 business your accountant no your accountant’s never ever done this before unless you have an account that went into this business and bottom line my company Kevin has actually stayed in business since 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 big huge corporate customers have actually dealt with bottom line to recover other government programs we have actually 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 federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, employer whose organization is completely or partially suspended.
decline by more than 50%.
1. The credit is offered to all employers despite size consisting of tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the similar quarter in 2019. As soon as the.
company’s gross invoices go above 80% of a similar 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 certifying incomes paid up to $10,000 in total.
It is effective for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries differs by whether an employer had, usually, more or less than.
100 workers in 2019.
Companies that specialize in ERC filing assistance generally provide know-how and support to help companies browse the complex process of declaring the credit. They can offer various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Webinar 2021
Eligibility Assessment: These business will evaluate your organization’s eligibility for the ERC based on factors such as your industry, earnings, and operations. They can assist determine if you satisfy the requirements for the credit and determine the optimum credit quantity you can claim.
Documentation and Estimation: ERC filing services will assist in collecting the required documents, such as payroll records and monetary declarations, to support your claim. They will also help calculate the credit quantity based upon eligible earnings and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these companies can examine your past payroll records and financials to identify potential chances for retroactive credits. They can assist you amend previous income tax return to declare these refunds.
Filing Support: Business concentrating on ERC filings will prepare and submit the required kinds and documentation in your place. This includes finishing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have developed over time. These business stay updated with the current changes and guarantee that your filings adhere to the most existing guidelines. If the IRS requests extra details or carries out an audit associated to your ERC claim, they can also offer continuous assistance.
It is very important to research and vet any business providing ERC filing assistance to guarantee their trustworthiness and proficiency. Search for recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who use ERC filing assistance.
Remember that while these companies can supply important support, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make informed decisions and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The objective of the ERC is to motivate businesses to retain and pay their workers during the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit organizations, tax-exempt organizations, and specific governmental entities. To qualify, employers should meet one of two requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a significant decrease is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a portion (up to 70%) of qualified wages paid to workers, including particular health insurance expenditures. The maximum credit per staff member 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 Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they received a PPP loan. The same salaries 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 eligible employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for organizations to amend prior-year tax returns and get refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment tax returns, usually Form 941. The excess can be refunded to the employer if the credit exceeds the quantity of employment taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility requirements have developed with time. The best course of action is to consult with a tax professional or check out the main IRS site for the most comprehensive and up-to-date details concerning the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a business should fulfill one of the following requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a considerable decrease is specified as a 20% decline 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 invoices compared to the right away preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and businesses that got a PPP loan may have constraints on declaring the credit.
The procedure for claiming the ERC involves completing the needed forms and including the credit on your employment income tax return (normally Kind 941). The exact time it takes to process the credit can differ based on a number of factors, including the complexity of your service and the workload of the internal revenue service. It’s suggested to speak with a tax professional for assistance particular to your circumstance.
There are a number of companies that can assist with the process of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some well-known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and call these business directly to inquire about their fees and services.
Please keep in mind that the info supplied here is based upon basic knowledge and might not reflect the most current updates or modifications to the ERC. It is very important to talk to a tax expert or go to the official internal revenue service website for the most updated and accurate details relating to eligibility, declaring treatments, and offered assistance.
Less than 100. If the company had 100 or less workers usually in 2019, then the credit is based.
on incomes paid to all workers whether they in fact worked or not. Simply put, even if the.
workers worked full time and got paid for full time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
permitted only for salaries paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply money payments but likewise a portion of the expense of employer.
provided healthcare. Employee Retention Credit Webinar 2021
Employers can be immediately compensated for the credit by decreasing the amount of payroll taxes they.