Lets talk first about Innovation Refunds Des Moines Iowa :
Our group here what do these guys doing everybody in this space is assisting teach individuals about ERC and uh constantly supply a stunning breakfast and have people truly discover the program we ought to head to the room where we are able to show a few of the checks that we are getting for business and I want to see that what is this this is uh numerous countless dollars actually Kevin hundreds of millions of dollars so these are replicate copies of the letters that go to clients confirming that the check is on the way I imply you understand if you just start to look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I imply think about 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 validated the numbers are confirmed 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 chosen sure which’s when they pay so they don’t pay anything up until they in fact get the cash they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the way they transfer it into their checking account and they can genuinely trust Wonder trust that the process has actually been completed and the number of you believe you have actually processed considering that you started this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing and that’s what you require 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 discussing something truly essential today the employee retention credit which most of you have actually never ever become aware of I certainly had not become aware of it till very just recently and learned a lot about it because this is probably the most affordable expense of capital for any small business anywhere
anytime if you have workers in between 5 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 Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply call 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 ended up being yes the Ambassador and paid representative for this I love this program it’s going away very soon you got to discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin 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 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a big distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money money payroll tax refund okay go on sorry I just need to ensure we got that point I indicate that’s a huge difference a loan versus cash cash I like money 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 initial cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get real cash from the IRS all right so let’s speak about how it works because it seems like to me if it’s a if it’s staff member retention credit that person needed to be an employee so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for staff members right you had to have owned a company but it’s based upon 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 need to be on payroll for the first six months of 2021 on the W-2 correct so there were six quarters the program was open well walk us through the six quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you have to be on the W-2 during that duration now let’s talk my preferred part money how much can you return per employee that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the employee’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 staff member’s wage to an optimum of seven thousand per quarter how did that take place um they just altered 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 approximately 5 thousand Max and then what takes place 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 because that’s a lot of cash it is now there’s a caution here the PPP money would need to be lowered from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize 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 state hypothetically you owned a restaurant 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 substantial obviously now the huge concern is why does no one know about this because look when I first found out about this when I first met Josh you understand I have actually got great deals of financial investments in great deals of business I’m a major advocate for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I don’t believe it due to the fact that I utilize the PPP we went through the cash center Banks to get it it was very easy to do we had our CEOs call the banks they got their loans and that were well deserved and we used them wisely to stay alive during the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even called to my political leader buddies Governor Senators they didn’t understand about it I imply that’s how you understand that’s how misinformation is that there’s no information out there then a lot of people informed me well you can’t get it since you took the PPP also not real so let’s ask Josh why does nobody know about the worker retention credit you know what’s intriguing you’re talking about the banks Kevin because in the PPP loan process 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 big banks in our country and they would process process 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 turmoil due to the fact that keep in mind in the initial cares act you could not do both programs so if you had actually done PPP you could refrain from doing 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 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 a few of them are doing it as a payroll business your accounting professional no your accounting professional’s never ever done this before 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 cash for Fortune 500 Fortune 1000 business so a lot of our huge big corporate customers have worked 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 developed to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
company whose organization is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all companies despite size including tax exempt companies. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the similar quarter in 2019. When the.
employer’s gross receipts go above 80% of a similar 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 overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying earnings varies by whether an employer had, typically, basically than.
100 staff members in 2019.
Business that concentrate on ERC filing assistance typically offer know-how and support to assist companies browse the complex procedure of claiming the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Innovation Refunds Des Moines Iowa
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based upon factors such as your market, revenue, and operations. If you fulfill the requirements for the credit and recognize the maximum credit quantity you can declare, they can assist determine.
Documentation and Estimation: ERC filing services will help in collecting the needed paperwork, such as payroll records and financial statements, to support your claim. They will also help determine the credit quantity based upon qualified incomes and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these business can review your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Help: Companies concentrating on ERC filings will prepare and send the required types and documents on your behalf. This includes completing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and guidance have progressed over time. These companies remain upgraded with the current changes and ensure that your filings abide by the most existing guidelines. If the IRS demands extra info or conducts an audit associated to your ERC claim, they can likewise supply ongoing support.
It is essential to research and vet any company using ERC filing help to guarantee their credibility and proficiency. Try to find established companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who provide ERC filing support.
Keep in mind that while these companies can offer important assistance, it’s always a great concept to have a standard understanding of the ERC requirements and procedure yourself. This will help you make informed decisions and ensure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief procedures. The goal of the ERC is to motivate companies to retain and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible companies, consisting of for-profit businesses, tax-exempt organizations, and certain governmental entities. To qualify, companies need to meet one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As discussed previously, for 2021, a significant decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease 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.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit amount amounts to a percentage (as much as 70%) of qualified earnings paid to staff members, including specific health plan costs. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that received an Income Protection Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables services to claim the ERC even if they received a PPP loan. Nevertheless, the same incomes can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, enabling eligible employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for services to modify prior-year tax returns and get refunds.
Declaring the Credit: Employers can declare the ERC by reporting it on their employment tax returns, generally Type 941. The excess can be refunded to the company if the credit goes beyond the amount of work taxes owed.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have developed over time. The best course of action is to talk to a tax professional or visit the official internal revenue service site for the most comprehensive and updated information concerning the ERC, consisting of any current legislative modifications or updates.
To receive the ERC, a business needs to satisfy among the following criteria:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a significant decrease in gross receipts. For 2021, a significant decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline is specified 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 right away preceding quarter.
The ERC is available to organizations 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 declaring the credit.
The procedure for declaring the ERC involves completing the essential kinds and including the credit on your work income tax return (typically Type 941). The exact time it takes to process the credit can vary based on numerous elements, consisting of the complexity of your company and the work of the IRS. It’s advised to seek advice from a tax expert for guidance specific to your situation.
There are a number of companies that can aid with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some well-known business that provide assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research study and call these companies directly to ask about their fees and services.
Please keep in mind that the information provided here is based upon general knowledge and may not reflect the most recent updates or changes to the ERC. It’s important to talk to a tax professional or check out the main IRS website for the most accurate and current information relating to eligibility, claiming treatments, and offered assistance.
Less than 100. If the employer had 100 or less employees usually in 2019, then the credit is based.
on salaries paid to all employees whether they in fact worked or not. In other words, even if the.
employees 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 usually in 2019, then the credit is.
allowed just for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not just money payments however also a portion of the cost of company.
offered health care. Innovation Refunds Des Moines Iowa
Employers can be instantly compensated for the credit by decreasing the quantity of payroll taxes they.