Lets talk first about Innovation Refunds Photos :
Our group here what do these men doing everyone in this room is assisting teach people about ERC and uh always supply a gorgeous breakfast and have people truly learn about 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 want to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers validating that the check is on the method I indicate you know if you just start to take a look at some of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s simply I indicate think about the number of actual 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 verified and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you understand when you
get this you understand the check is chosen sure which’s when they pay so they don’t pay anything till they really get the cash they don’t pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their bank account and they can truly trust Wonder trust that the procedure has been completed and the number of you think you’ve processed given that you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly 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 among these that’s what matters all right Mr Terrific here you’re at my YouTube channel we’re discussing something truly important today the worker retention credit which most of you have never ever heard of I certainly had not become aware of it till very just recently and learned a lot about it due to the fact that this is most likely the most affordable cost of capital for any small business anywhere
anytime if you have employees between 5 and five hundred so I’ve got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we just call up your bank supervisor and say provide me a loan it doesn’t 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 representative for this I like this program it’s disappearing very soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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.
remedy the cash cash payroll tax refund alright go on sorry I just need to make certain we got that point I indicate that’s a big distinction a loan versus cash cash I like money cash 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 initial cares Act is the ERC and yes Kevin it is a gorgeous tough check in the mail where you get actual cash from the internal revenue service 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 individual needed to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for workers right you had 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 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 have to be on payroll for the first 6 months of 2021 on the W-2 appropriate so there were 6 quarters the program was open well stroll us through the 6 quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you return per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to an optimum of seven thousand per quarter how did that occur um they just changed 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 five thousand Max and then what occurs 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 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 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 usually Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred workers and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s big undoubtedly now the big question is why does nobody know about this since appearance when I first became aware of this when I first met Josh you understand I have actually got lots of financial investments in lots of business I’m a major supporter for entrepreneurship in America and make lots of lots of financial investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I don’t believe it since 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 utilized them wisely to stay alive during the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader pals Guv Senators they didn’t understand about it I indicate that’s how you understand that’s how false information is that there’s no info out there then a lot of people told me well you can’t get it due to the fact that you took the PPP also not true so let’s ask Josh why does no one learn about the staff member retention credit you know what’s interesting you’re discussing the banks Kevin because in the PPP loan process the federal government made it very clear that if you wanted a PPP loan you would call Wells Fargo Citibank Bank of America any of the big 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 mayhem since keep in mind in the original cares act you could not do both programs so if you had actually done PPP you might 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 government never made it clear to anyone about how to.
do this does your CFO know how to do this not actually she or he’s never done it previously do the banks do it nope the banks do not do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this company and bottom line my firm Kevin has actually been in business considering that 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big big business clients have worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed property property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
employer whose organization is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is readily available to all employers regardless of size consisting of tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s service is fully or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts go above 80% of a similar 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 earnings paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The meaning of certifying wages differs by whether a company had, usually, more or less than.
100 employees in 2019.
Business that specialize in ERC filing support generally offer proficiency and assistance to help companies navigate the intricate procedure of declaring the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Innovation Refunds Photos
Eligibility Assessment: These companies will assess your service’s eligibility for the ERC based on aspects such as your market, income, and operations. If you satisfy the requirements for the credit and recognize the optimum credit amount you can claim, they can help figure out.
Documents and Estimation: ERC filing services will help in gathering the necessary documentation, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit amount based upon qualified salaries and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these business can examine your past 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: Business concentrating on ERC filings will prepare and send the necessary kinds and documentation on your behalf. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and assistance have actually evolved in time. These business remain updated with the current modifications and make sure that your filings abide by the most current standards. If the IRS requests extra info or performs an audit related to your ERC claim, they can also supply ongoing support.
It is essential to research and vet any business providing ERC filing assistance to ensure their reliability and competence. Search for recognized companies with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who offer ERC submitting support.
Bear in mind that while these business can provide valuable support, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified 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 procedures. The goal of the ERC is to encourage organizations to retain and pay their workers throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit organizations, tax-exempt organizations, and specific 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 earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately preceding quarter.
Credit Quantity: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (up to 70%) of qualified salaries paid to workers, consisting of certain health plan 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, organizations that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they got a PPP loan. However, the very same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and boosted, permitting qualified employers to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for organizations to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Kind 941. If the credit goes beyond the amount of employment taxes owed, the excess can be refunded to the employer.
It’s important to keep in mind that the ERC provisions and eligibility requirements have actually developed gradually. The best strategy is to talk to a tax professional or visit the official internal revenue service site for the most current and comprehensive information concerning the ERC, including any recent legal changes or updates.
To receive the ERC, an organization must meet one of the following requirements:.
The business operations were completely or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease 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 instantly preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and organizations that got a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC involves finishing the essential types and consisting of the credit on your employment income tax return (normally Form 941). The exact time it takes to process the credit can differ based upon a number of aspects, consisting of the intricacy of your service and the workload of the internal revenue service. It’s advised to consult with a tax expert for assistance particular to your scenario.
There are a number of companies that can aid with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some popular business that provide assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these companies directly to ask about their charges and services.
Please keep in mind that the details provided here is based on basic knowledge and may not reflect the most current updates or changes to the ERC. It is necessary to seek advice from a tax expert or check out the main internal revenue service site for the most updated and accurate information regarding eligibility, declaring treatments, and available support.
Less than 100. If the employer had 100 or fewer staff members on average in 2019, then the credit is based.
on incomes paid to all employees whether they in fact worked or not. Simply put, even if the.
employees worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
allowed only for incomes paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just money payments but also a portion of the expense of employer.
supplied health care. Innovation Refunds Photos
Companies can be immediately repaid for the credit by reducing the quantity of payroll taxes they.