Lets talk first about Innovation Refund Solution :
Our team here what do these people doing everybody in this space is helping teach people about ERC and uh always supply a gorgeous breakfast and have individuals really learn about the program we must head to the space where we are able to display some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh numerous countless dollars actually Kevin numerous countless 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 simply start to take a 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 mean it’s simply I mean consider how many real customers that went through the program yeah this is the very end this is the party at the end when the check is confirmed the numbers are verified 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 know when you
get this you know the check is opted for sure and that’s when they pay so they do not pay anything till they really receive the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the way they deposit it into their savings account and they can genuinely trust Wonder trust that the process has been ended up and how many you believe 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 need you need 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 Terrific here you’re at my YouTube channel we’re speaking about something truly crucial today the staff member retention credit which the majority of you have never ever become aware of I certainly hadn’t heard of it till really recently and learned a lot about it due to the fact that this is probably the lowest expense of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I have actually got the professional 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 just contact your bank manager and say 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 spokesperson for this I like this program it’s disappearing soon you got to discover all 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 provided companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everyone it makes a huge distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund all right go on sorry I simply have to make sure we got that point I indicate that’s a huge distinction a loan versus cash cash I like money money that’s what we’re speaking 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 gorgeous hard check in the mail where you get real cash from the internal revenue service all right so let’s talk about how it works because it seems like to me if it’s a if it’s employee retention credit that individual needed to be a worker so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for staff members right you needed to have actually owned a company 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 eligible so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three of 2021. all right so that’s how it’s measured you need to be on the W-2 throughout that duration now let’s talk my preferred part cash how much can you get back per worker that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s wage 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 salary to an optimum of seven thousand per quarter how did that occur um they simply changed the rules in.
2021 versus because the turmoil of the pandemic so they wanted 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 then what occurs 21 000 Max in 2021 oh that’s how you develop twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per staff member that is since that’s a lot of cash it is now there’s a caveat here the PPP money would need to be lowered 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 usually Kevin is if you took PPP money someplace around 10 thousand dollars a person 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 cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial clearly now the huge concern is why does nobody learn about this due to the fact that look when I initially became aware of this when I initially fulfilled Josh you know I’ve got great deals of financial investments in lots of business I’m a significant supporter for entrepreneurship in America and make many many investments in business owners of which numerous suffered through the pandemic when I initially found out 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 very easy to do we had our CEOs call the banks they got their loans which were well should have and we used them wisely to survive during the pandemic so when I found out about this I stated nah it can’t hold true however when I dug around I even contacted us to my political leader buddies Governor Senators they didn’t understand about it I imply that’s how you know that’s how false information is that there’s no info out there then a bunch of individuals informed me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody learn about the worker retention credit you know what’s intriguing you’re discussing 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 nation and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process process that’s all um and here there was chaos since remember in the original cares act you could not do both programs so if you had done PPP you could not do ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC since 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 he or she’s never done it previously do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll company your accountant no your accountant’s never ever done this before unless you have an account that entered into this company and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity 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 created to motivate.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
company whose company is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt organizations. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross invoices go above 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying incomes varies by whether an employer had, on average, basically than.
100 employees in 2019.
Business that concentrate on ERC filing help normally provide competence and assistance to help companies navigate the complicated process of declaring the credit. They can offer numerous services, including:.
How is the employee retention credit calculated? Innovation Refund Solution
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based upon aspects such as your market, income, and operations. They can assist identify if you satisfy the requirements for the credit and identify the optimum credit quantity you can declare.
Paperwork and Estimation: ERC filing services will assist in gathering the required documentation, such as payroll records and financial statements, to support your claim. They will also help calculate the credit quantity based upon eligible incomes and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can evaluate your previous payroll records and financials to determine possible chances for retroactive credits. They can help you modify prior income tax return to declare these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the needed types and documentation on your behalf. This consists of completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have progressed with time. These business stay updated with the current modifications and make sure that your filings adhere to the most present guidelines. They can also offer continuous support if the IRS requests additional information or carries out an audit related to your ERC claim.
It’s important to research study and vet any business providing ERC filing assistance to guarantee their reliability and competence. Look for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting companies or tax experts who offer ERC submitting support.
Keep in mind that while these business can offer valuable assistance, it’s constantly an excellent idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified choices and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate organizations to retain and pay their workers throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to qualified employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, companies should satisfy one of two criteria:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As discussed earlier, for 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease 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 quantity is equal to a portion (up to 70%) of qualified salaries paid to staff members, consisting of certain health insurance costs. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received an Income Protection Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they got a PPP loan. The same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling eligible companies to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers an opportunity for services to change prior-year tax returns and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment tax returns, typically Type 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the employer.
It is necessary to keep in mind that the ERC provisions and eligibility criteria have developed with time. The very best strategy is to talk to a tax expert or visit the main internal revenue service site for the most updated and in-depth information relating to the ERC, including any recent legislative changes or updates.
To receive the ERC, an organization must fulfill one of the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross invoices. For 2021, a substantial decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to businesses of all sizes, consisting of tax-exempt companies, however there are some exceptions. For instance, government entities and companies that got a PPP loan may have limitations on declaring the credit.
The process for claiming the ERC includes finishing the essential kinds and including the credit on your work income tax return (usually Form 941). The exact time it requires to process the credit can vary based on numerous elements, including the complexity of your service and the workload of the IRS. It’s suggested to seek advice from a tax expert for assistance specific to your circumstance.
There are several business that can assist with the procedure of claiming the ERC. Some well-known business that offer assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details supplied here is based on general knowledge and may not show the most current updates or modifications to the ERC. It is necessary to speak with a tax expert or check out the main internal revenue service site for the most updated and precise info regarding eligibility, claiming procedures, and readily available support.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
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. If the employer had more than 100 workers typically in 2019, then the credit is.
allowed just for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments but also a portion of the cost of company.
offered health care. Innovation Refund Solution
Employers can be immediately repaid for the credit by reducing the amount of payroll taxes they.