Lets talk first about How To Check Employee Retention Credit Status :
Our team here what do these men doing everybody in this room is helping teach people about ERC and uh constantly offer a beautiful breakfast and have people truly learn about the program we ought to head to the space where we have the ability to display a few of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of millions of dollars actually Kevin numerous countless dollars so these are replicate copies of the letters that go to customers verifying that the check is on the way I imply you understand if you simply start to take a 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 suggest it’s just I mean consider 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 IRS heading to the consumer so that’s how you’re able to track it you understand when you
receive this you know the check is opted for sure which’s when they pay so they do not pay anything up until they really receive the cash they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they deposit it into their checking account and they can genuinely trust Wonder trust that the procedure has been completed and how many you think you have actually processed considering that you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing which’s what you need you require experts 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 really essential today the employee retention credit which the majority of you have actually never heard of I definitely had not heard of it until very recently and learned a lot about it because this is probably the lowest cost of capital for any small company anywhere
anytime if you have staff members in 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 difficult this isn’t like PPP we simply call up your bank manager and state provide me a loan it doesn’t 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 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 find out everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a big distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money money payroll tax refund alright go on sorry I just need to make sure we got that point I mean that’s a huge difference a loan versus money cash I like cash money 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 beautiful tough check in the mail where you get actual money from the IRS all right so let’s discuss how it works because it sounds like to me if it’s a if it’s worker retention credit that individual needed to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have owned a service but it’s based upon you having W-2 staff members 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 eligible so you have to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 months of 2021 on the W-2 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you have 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 employee that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s wage to an optimum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s salary to a maximum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus because the turmoil 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 up to 5 thousand Max and after that 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 because that’s a great deal of money it is now there’s a caveat here the PPP cash would need to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing usually Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say hypothetically you owned a restaurant 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 internal revenue service so it’s substantial undoubtedly now the big concern is why does no one know about this since look when I initially became aware of this when I initially fulfilled Josh you know I’ve got great deals of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first found out about this I called BS I don’t think it since 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 deserved and we used them wisely to survive throughout the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even called to my politician buddies Guv Senators they didn’t learn about it I imply that’s how you know that’s how misinformation is that there’s no details out there then a lot of people told me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does nobody know about the employee retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan procedure 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 nation and they would process process 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 turmoil since remember in the initial cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they changed 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 understand how to do this not actually she or he’s never ever done it in the past do the banks do it nope the banks do not do it the payroll business yeah some of them are doing it as a payroll company your accounting professional no your accountant’s never ever done this prior to unless you have an account that entered into this service and bottom line my company Kevin has stayed in business given that 2009 and we have actually been working with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate clients have actually worked with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to motivate.
companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Since of COVID-19 or whose gross invoices, company whose company is completely or partially suspended.
decrease by more than 50%.
1. The credit is offered to all companies regardless of size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
services who take Small company Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s organization is fully or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are listed below 50% of the comparable quarter in 2019. When the.
employer’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after completion of that quarter.
Computation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of certifying wages differs by whether an employer had, typically, basically than.
100 employees in 2019.
Business that focus on ERC filing assistance usually provide knowledge and assistance to assist organizations browse the complex procedure of declaring the credit. They can provide various services, consisting of:.
How is the employee retention credit calculated? How To Check Employee Retention Credit Status
Eligibility Evaluation: These companies will evaluate your company’s eligibility for the ERC based upon factors such as your market, profits, and operations. They can assist figure out if you meet the requirements for the credit and identify the optimum credit amount you can claim.
Paperwork and Calculation: ERC filing services will assist in gathering the necessary documents, such as payroll records and financial statements, to support your claim. They will likewise help calculate the credit amount based upon qualified earnings and other certifying expenditures.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to identify possible opportunities for retroactive credits. They can help you change prior income tax return to claim these refunds.
Filing Assistance: Companies concentrating on ERC filings will prepare and send the necessary kinds and documents in your place. This includes completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and guidance have developed gradually. These business stay updated with the current modifications and guarantee that your filings adhere to the most present standards. They can also offer ongoing support if the internal revenue service demands additional information or conducts an audit related to your ERC claim.
It is necessary to research study and vet any business offering ERC filing assistance to ensure their reliability and expertise. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax professionals who offer ERC filing assistance.
Keep in mind that while these companies can provide valuable help, it’s constantly an excellent concept to have a standard understanding of the ERC requirements and process yourself. This will assist you make informed choices 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 procedures. The objective of the ERC is to motivate companies to keep and pay their employees throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified companies, including for-profit companies, tax-exempt organizations, and particular governmental entities. To certify, employers need to meet one of two criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As discussed earlier, for 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline in gross receipts 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 portion (approximately 70%) of certified earnings paid to staff members, including specific health plan costs. 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 got an Income Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they received a PPP loan. Nevertheless, the very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, enabling eligible companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers a chance for businesses to amend prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment tax returns, typically Kind 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the employer.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have evolved over time. The very best strategy is to consult with a tax expert or go to the official internal revenue service site for the most up-to-date and in-depth details regarding the ERC, consisting of any recent legal changes or updates.
To qualify for the ERC, a company needs to satisfy among the following criteria:.
Business operations were totally or partially 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% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, government entities and companies that got a PPP loan might have limitations on claiming the credit.
The procedure for claiming the ERC includes finishing the needed kinds and including the credit on your employment income tax return (usually Type 941). The exact time it requires to process the credit can differ based upon a number of factors, including the intricacy of your service and the workload of the internal revenue service. It’s suggested to talk to a tax professional for assistance particular to your scenario.
There are a number of companies that can help with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some widely known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these companies straight to inquire about their fees and services.
Please keep in mind that the details provided here is based on basic knowledge and might not show the most current updates or modifications to the ERC. It is essential to seek advice from a tax expert or go to the official IRS site for the most precise and updated info concerning eligibility, claiming procedures, and readily available help.
Less than 100. If the company had 100 or fewer staff members usually in 2019, then the credit is based.
on salaries paid to all staff members whether they really worked or not. Simply put, even if the.
workers worked full time and earned money for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 employees usually in 2019, then the credit is.
allowed just for earnings paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” includes not just cash payments but also a part of the expense of company.
provided healthcare. How To Check Employee Retention Credit Status
Employers can be instantly reimbursed for the credit by decreasing the amount of payroll taxes they.