Lets talk first about Innovation Refunds Competitors :
Our group here what do these men doing everybody in this space is helping teach people about ERC and uh constantly supply a gorgeous breakfast and have individuals really discover the program we should head to the space where we are able to show 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 actually Kevin numerous millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I imply 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 imply it’s just I suggest think about the number of real customers that went through the program yeah this is the very end this is the celebration at the end when the check is verified 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 have the ability to track it you know when you
receive this you know the check is opted for sure which’s when they pay so they do not 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 transfer it into their bank account and they can genuinely rely on Wonder trust that the procedure has actually been completed and how many you believe you’ve 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 require you need specialists 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 actually important today the employee retention credit which the majority of you have actually never ever heard of I certainly hadn’t heard of it until extremely recently and discovered a lot about it since this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have employees in between 5 and five hundred so I have actually got the professional 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 not easy this isn’t like PPP we simply phone your bank supervisor and state provide me a loan it does not work there’s not a loan it’s an application and Josh is going to tell all of us about it and how to get it and why I have actually become yes the Ambassador and paid spokesperson for this I enjoy this program it’s disappearing soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund fine go on sorry I just need to make sure we got that point I indicate that’s a huge difference a loan versus cash money I like money money that’s what we’re speaking about alright 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 lovely hard check in the mail where you get actual money from the IRS 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 individual needed to be an employee 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 business but it’s based on you having W-2 staff members in America not 10.99. so as long as you had W-2 staff members and you paid federal payroll taxes that’s why you would be eligible so you need 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 proper so there were 6 quarters the program was open well stroll 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. fine so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my preferred part money 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 worker’s salary to a maximum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to a maximum of 7 thousand per quarter how did that take place um they simply changed the rules in.
2021 versus due to the fact that the turmoil of the pandemic so they wanted 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 approximately 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty six 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 money it is now there’s a caution here the PPP money would have to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 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 workers 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 concern is why does nobody learn about this because appearance when I first heard about this when I first fulfilled Josh you understand I’ve got lots of investments in lots of business I’m a significant supporter for entrepreneurship in America and make many numerous financial investments in entrepreneurs of which numerous suffered through the pandemic when I first became aware of this I called BS I do not 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 carefully to survive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even called to my politician buddies Guv 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 lot of individuals told me well you can’t get it because you took the PPP likewise not true so let’s ask Josh why does no one understand about the worker retention credit you know what’s interesting you’re speaking 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 country and they would process procedure 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 mayhem because remember in the initial cares act you could not do both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered 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 federal government never made it clear to any person about how to.
do this does your CFO understand how to do this not really she or he’s never done it before do the banks do it nope the banks don’t do it the payroll companies 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 firm Kevin has actually stayed in business because 2009 and we’ve been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a great deal of our huge huge corporate clients have actually worked with bottom line to recover other government programs we have actually done sales tax and use tax unemployment tax work chance 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 designed to encourage.
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Due to the fact that of COVID-19 or whose gross invoices, employer whose organization is totally or partly suspended.
decrease by more than 50%.
Availability.
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) little.
businesses 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 employer’s service is fully or partially suspended by government order due to COVID-19.
during 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 comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries varies by whether a company had, usually, basically than.
100 staff members in 2019.
Companies that concentrate on ERC filing help generally provide know-how and assistance to help businesses browse the complicated process of declaring the credit. They can provide various services, including:.
How is the employee retention credit calculated? Innovation Refunds Competitors
Eligibility Evaluation: These companies will examine your organization’s eligibility for the ERC based upon elements such as your industry, income, and operations. They can assist figure out if you fulfill the requirements for the credit and recognize the optimum credit amount you can claim.
Documents and Calculation: ERC filing services will assist in collecting the required documentation, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit amount based on eligible earnings and other certifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to determine possible chances for retroactive credits. They can assist you modify previous income tax return to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and send the required forms and documentation on your behalf. This consists of finishing Form 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have actually developed in time. These business remain upgraded with the most recent modifications and make sure that your filings comply with the most present guidelines. If the IRS demands additional info or conducts an audit related to your ERC claim, they can also supply continuous support.
It is necessary to research study and vet any business offering ERC filing support to guarantee their credibility and knowledge. Search for recognized companies with experience in tax and payroll services, or think about connecting to trusted accounting companies or tax experts who provide ERC filing assistance.
Remember that while these business can provide important help, it’s always a great idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified choices and guarantee precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to encourage services to retain and pay their employees throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to eligible employers, consisting of for-profit businesses, tax-exempt companies, and specific governmental entities. To certify, companies need to satisfy one of two criteria:.
Business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross receipts. As mentioned earlier, for 2021, a considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity amounts to a portion (as much as 70%) of certified earnings paid to staff members, consisting of specific health insurance expenditures. The optimum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. The exact same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, permitting qualified employers to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to change prior-year tax returns and receive refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their work income tax return, normally Form 941. If the credit surpasses the amount of work taxes owed, the excess can be refunded to the employer.
It is very important to keep in mind that the ERC arrangements and eligibility criteria have actually developed in time. The best strategy is to talk to a tax expert or check out the main IRS site for the most updated and in-depth details concerning the ERC, including any recent legal modifications or updates.
To receive the ERC, an organization must satisfy among the following criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decrease in gross invoices. For 2021, a substantial decline is defined as a 20% decrease 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 exact same quarter in 2019, or a 20% decrease in gross receipts compared to the right away preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, government entities and services that got a PPP loan might have limitations on declaring the credit.
The procedure for claiming the ERC includes 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 differ based on several elements, including the complexity of your company and the workload of the IRS. It’s suggested to consult with a tax professional for assistance particular to your circumstance.
There are a number of business that can assist with the process of declaring the ERC. Some widely known business that provide help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info provided here is based on basic understanding and might not show the most current updates or modifications to the ERC. It is very important to talk to a tax professional or visit the main IRS website for the most updated and precise details relating to eligibility, claiming procedures, and offered assistance.
Less than 100. If the employer had 100 or less employees usually in 2019, then the credit is based.
on earnings paid to all employees whether they actually worked or not. To put it simply, even if the.
workers 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.
enabled just for wages paid to employees who did not work during the calendar quarter.
In both cases, “salaries” consists of not simply money payments but also a portion of the expense of company.
provided health care. Innovation Refunds Competitors
Payment.
Employers can be instantly repaid for the credit by reducing the quantity of payroll taxes they.