Lets talk first about Innovation Refunds Audit :
Our team here what do these guys doing everyone in this room is helping teach people about ERC and uh constantly supply a stunning breakfast and have people really discover the program we should head to the room where we have the ability to show some of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I mean you know if you simply start to look at a few of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I suggest consider how many real clients 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 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’re able to track it you know when you
get this you understand the check is chosen sure which’s when they pay so they do not pay anything up until they really receive the money they do not pay bottom line Wonder trust anything up until this letter is validated the check is on the method they transfer it into their savings account and they can really rely on Wonder trust that the procedure has actually been completed and the number of 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 which’s what you require you require 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 actually crucial today the worker retention credit which most of you have actually never heard of I definitely had not heard of it till extremely just 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 workers between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Ideas 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 contact your bank supervisor and state give 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 become yes the Ambassador and paid representative for this I like this program it’s going away very soon you got to learn all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody 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.
remedy the cash cash payroll tax refund all right go on sorry I just need to ensure we got that point I imply that’s a big difference a loan versus cash money I like cash cash 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 original cares Act is the ERC and yes Kevin it is a stunning tough check in the mail where you get real money from the internal revenue service all right so let’s discuss how it works because it seems like to me if it’s a if it’s worker retention credit that person had to be a staff member 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 needed to have actually owned a company however it’s based upon you having W-2 staff members 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 qualified 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 stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my preferred part money just how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be exact Kevin is 50 of the worker’s wage to an optimum of 5 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 happen um they simply changed the rules in.
2021 versus because the chaos 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 five thousand Max and after that what takes place 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 staff member that is because that’s a great deal of money it is now there’s a caveat here the PPP money would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge certainly now the big concern is why does no one learn about this since look when I first found out about this when I initially fulfilled Josh you understand I’ve got lots of investments in lots of companies I’m a major supporter for entrepreneurship in America and make lots of many investments in business owners of which many suffered through the pandemic when I first became aware of this I called BS I don’t think 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 been worthy of and we used them carefully 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 politician good friends Governor Senators they didn’t understand about it I suggest that’s how you know that’s how false information is that there’s no information out there then a lot of individuals informed me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does no one understand about the staff member retention credit you understand what’s interesting you’re discussing the banks Kevin since 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 mayhem due to the fact that keep in mind in the initial cares act you could refrain from doing both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they altered 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 made it clear to anybody about how to.
do this does your CFO understand how to do this not truly she or he’s never ever done it in the past 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 done this before unless you have an account that entered into this service and bottom line my company Kevin has actually been in business considering that 2009 and we have actually been dealing 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 business customers have actually dealt with bottom line to recover other government programs we’ve 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 staff member retention tax credit is a broad based refundable tax credit created to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
company whose service is completely or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is available to all employers no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s organization is totally or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are listed below 50% of the similar quarter in 2019. When the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The definition of certifying salaries differs by whether an employer had, typically, basically than.
100 staff members in 2019.
Business that specialize in ERC filing assistance typically supply proficiency and assistance to help companies navigate the complex process of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Innovation Refunds Audit
Eligibility Evaluation: These companies will assess your organization’s eligibility for the ERC based on aspects such as your industry, revenue, and operations. They can help identify if you meet the requirements for the credit and identify the optimum credit quantity you can claim.
Documentation and Calculation: ERC filing services will assist in gathering the needed paperwork, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit amount based upon eligible earnings and other certifying expenses.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can examine your previous payroll records and financials to identify prospective chances for retroactive credits. They can help you modify previous tax returns to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and submit the needed types and documentation in your place. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and assistance have progressed over time. These business stay upgraded with the most recent modifications and guarantee that your filings adhere to the most existing guidelines. They can also provide continuous support if the internal revenue service demands additional details or conducts an audit related to your ERC claim.
It is necessary to research and vet any business using ERC filing assistance to ensure their reliability and proficiency. Search for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax experts who use ERC submitting support.
Remember that while these companies can supply valuable support, it’s always a great concept to have a standard understanding of the ERC requirements and procedure 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. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate services to keep and pay their staff members during 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 companies, tax-exempt companies, and specific governmental entities. To certify, companies need to meet one of two criteria:.
The business operations were totally or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As pointed out earlier, 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 defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decline 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 amount is equal to a portion (approximately 70%) of certified earnings paid to employees, including particular health insurance expenses. 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, companies that received an Income Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables services to declare the ERC even if they received a PPP loan. The exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, enabling qualified companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for businesses to change prior-year income tax return and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Type 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the company.
It is very important to note that the ERC arrangements and eligibility requirements have progressed with time. The best course of action is to seek advice from a tax professional or visit the main IRS website for the most in-depth and current details relating to the ERC, consisting of any current legal modifications or updates.
To get approved for the ERC, a service should satisfy one of the following requirements:.
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 receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and companies that received a PPP loan may have restrictions on declaring the credit.
The procedure for claiming the ERC includes finishing the necessary forms and consisting of the credit on your work income tax return (normally Kind 941). The exact time it requires to process the credit can vary based on a number of factors, including the complexity of your organization and the work of the internal revenue service. It’s advised to consult with a tax expert for assistance specific to your circumstance.
There are numerous companies that can assist with the procedure of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some popular 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 companies straight to inquire about their costs and services.
Please note that the info provided here is based on basic knowledge and may not show the most recent updates or modifications to the ERC. It’s important to seek advice from a tax professional or go to the official IRS website for the most up-to-date and precise information concerning eligibility, claiming procedures, and offered support.
Less than 100. If the employer had 100 or less employees on average in 2019, then the credit is based.
on incomes paid to all staff members whether they actually worked or not. Simply put, even if the.
workers worked full time and made 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.
enabled just for salaries paid to workers who did not work during the calendar quarter.
In both cases, “wages” includes not simply money payments however likewise a portion of the expense of employer.
offered healthcare. Innovation Refunds Audit
Employers can be immediately reimbursed for the credit by lowering the quantity of payroll taxes they.