Lets talk first about How Long To Receive Employee Retention Credit :
Our group here what do these guys doing everybody in this room is assisting teach people about ERC and uh constantly provide a stunning breakfast and have people truly find out about the program we ought to head to the room where we are able to display some of the checks that we are getting for business and I ‘d like to see that what is this this is uh hundreds of millions of dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the way I indicate you understand if you just start to look at a few of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I imply 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 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 know when you
get this you know the check is opted for sure which’s when they pay so they don’t pay anything till they really get the cash they don’t pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their savings account and they can truly trust Wonder trust that the procedure has actually been finished and the number of you think you have actually processed considering that 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 and that’s what you require you require 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 Wonderful here you’re at my YouTube channel we’re speaking about something really essential today the staff member retention credit which the majority of you have actually never ever become aware of I certainly had not become aware of it until really just recently and discovered a lot about it since this is probably the most affordable cost of capital for any small business anywhere
anytime if you have workers in between 5 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 phone your bank manager 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 going away very soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered organizations 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 distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund okay go on sorry I just need to make certain we got that point I imply that’s a huge difference a loan versus cash cash I like cash money that’s what we’re talking about okay 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 beautiful difficult check in the mail where you get actual money from the IRS all right so let’s talk about how it works because it seems like to me if it’s a if it’s worker retention credit that individual needed to be a staff member 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 had to have owned a service however it’s based on you having W-2 employees in America not 10.99. As long as you had W-2 workers 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 very first six months of 2021 on the W-2 proper so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one 2 and 3 of 2021. fine so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my preferred part cash just how much can you return per employee 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 income to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s income to an optimum of 7 thousand per quarter how did that take place um they just changed the rules in.
2021 versus because the chaos of the pandemic so they wanted 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 five thousand Max and then what occurs 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 lot of money it is now there’s a caution here the PPP money would have to be minimized from the twenty 6 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 someplace around ten thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city 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 undoubtedly now the huge question is why does no one learn about this because look when I first found out about this when I first fulfilled Josh you know I have actually got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make many lots of investments in entrepreneurs of which lots of suffered through the pandemic when I first heard about this I called BS I don’t think it due to the fact that I utilize 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 been worthy of and we utilized them sensibly to survive during the pandemic so when I heard about this I stated nah it can’t be true however when I dug around I even called to my political leader friends Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of individuals told me well you can’t get it because you took the PPP also not real so let’s ask Josh why does nobody learn about the staff member retention credit you understand what’s interesting you’re discussing the banks Kevin because in the PPP loan process the federal government made it very 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 procedure procedure that’s all um and here there was chaos because keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the initial 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 actually he or she’s never ever done it in the past do the banks do it nope the banks don’t 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 went into this company and bottom line my company Kevin has been in business given that 2009 and we’ve been dealing 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 corporate customers have actually worked with bottom line to recuperate other federal government programs we have actually done sales tax and use tax joblessness 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 created to encourage.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Due to the fact that of COVID-19 or whose gross receipts, company whose company is fully or partly suspended.
decrease by more than 50%.
1. The credit is offered to all employers regardless of size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the company needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s service is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the similar quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation 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 salaries paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes differs by whether a company had, usually, basically than.
100 staff members in 2019.
Business that focus on ERC filing help normally provide competence and assistance to help businesses navigate the complicated process of claiming the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? How Long To Receive Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based upon aspects such as your industry, revenue, and operations. They can help identify if you meet the requirements for the credit and determine the maximum credit quantity you can declare.
Documentation and Estimation: ERC filing services will help in gathering the essential documents, such as payroll records and monetary statements, to support your claim. They will likewise help compute the credit quantity based upon eligible earnings and other certifying expenses.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can evaluate your past payroll records and financials to identify potential chances for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the essential forms and documents in your place. This includes completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have developed gradually. These business stay upgraded with the most recent modifications and guarantee that your filings comply with the most existing guidelines. They can also provide ongoing assistance if the IRS requests additional info or performs an audit related to your ERC claim.
It’s important to research study and veterinarian any company offering ERC filing support to ensure their credibility and knowledge. Try to find established firms with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax specialists who provide ERC submitting support.
Bear in mind that while these companies can offer valuable assistance, it’s constantly an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to motivate businesses to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible companies, including for-profit companies, tax-exempt organizations, and particular governmental entities. To qualify, companies need to meet one of two requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. As discussed previously, for 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is defined as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (as much as 70%) of certified salaries paid to workers, including certain health insurance expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that received an Income Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows organizations to declare the ERC even if they received a PPP loan. Nevertheless, the same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, permitting qualified companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for businesses to modify prior-year tax returns and receive refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their work tax returns, usually Type 941. If the credit goes beyond the amount of work taxes owed, the excess can be refunded to the company.
It’s important to note that the ERC arrangements and eligibility requirements have evolved in time. The very best strategy is to talk to a tax expert or visit the main internal revenue service site for the most up-to-date and comprehensive information concerning the ERC, consisting of any current legislative modifications or updates.
To qualify for the ERC, a company needs to satisfy one of the following requirements:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt companies, however there are some exceptions. For example, federal government entities and businesses that got a PPP loan might have constraints on claiming the credit.
The procedure for claiming the ERC involves finishing the required forms 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 several elements, including the intricacy of your service and the workload of the IRS. It’s suggested to talk to a tax expert for guidance specific to your scenario.
There are a number of companies that can aid with the process of declaring the ERC. These include accounting companies, tax advisory services, and payroll company. Some popular companies that offer support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these companies directly to inquire about their services and charges.
Please keep in mind that the information offered here is based upon general knowledge and may not reflect the most recent updates or modifications to the ERC. It is necessary to speak with a tax expert or check out the main IRS site for the most current and accurate details regarding eligibility, claiming procedures, and available assistance.
Less than 100. The credit is based if the company had 100 or fewer staff members on average in 2019.
on salaries paid to all employees whether they really worked or not. Simply put, even if the.
employees worked full time and earned money for full time work, the company still gets the credit.
Greater than 100. If the company had more than 100 employees usually in 2019, then the credit is.
allowed only for earnings paid to employees who did not work during the calendar quarter.
In both cases, “earnings” consists of not just cash payments but also a part of the cost of employer.
provided health care. How Long To Receive Employee Retention Credit
Employers can be right away compensated for the credit by decreasing the quantity of payroll taxes they.