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Our group here what do these guys doing everybody in this space is helping teach people about ERC and uh always offer a beautiful breakfast and have people really discover the program we should head to the space where we have the ability to display some of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the way I indicate you know if you just begin to 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 mean it’s just I suggest think about the number of actual clients that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything till they really get the money they do not pay bottom line Wonder trust anything until this letter is verified the check is on the method they deposit it into their savings account and they can genuinely rely on Wonder trust that the process has been ended up and how many you believe you have actually processed given that you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you require you require 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 Fantastic here you’re at my YouTube channel we’re speaking about something truly crucial today the worker retention credit which the majority of you have actually never become aware of I certainly had not become aware of it till very recently and learned a lot about it since this is most likely the most affordable cost of capital for any small company 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 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 simply contact your bank supervisor and say offer 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 representative 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 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 businesses 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 difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund all right go on sorry I simply have to ensure we got that point I suggest that’s a huge distinction a loan versus money money I like money money that’s what we’re discussing 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 stunning hard check in the mail where you get actual money from the IRS all right so let’s discuss how it works since it sounds like to me if it’s a if it’s worker retention credit that person had to be an employee so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for staff members 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. so as long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you need 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 right so there were six quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and four of 2020 and you had quarters one 2 and three of 2021. alright so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my favorite part cash how much can you get back per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the employee’s income to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s income to an optimum of 7 thousand per quarter how did that take place um they simply altered 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 employees on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as 5 thousand Max and then 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 six thousand dollars per staff member that is because that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be decreased from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce 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 say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big obviously now the huge question is why does nobody understand about this because look when I first found out about this when I initially fulfilled Josh you understand I have actually got great deals of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous many financial investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I do not believe it since I utilize the PPP we went through the money center Banks to get it it was really 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 throughout the pandemic so when I found out about this I said nah it can’t hold true but when I dug around I even called to my politician good friends Guv Senators they didn’t understand about it I suggest that’s how you know that’s how false information is that there’s no info out there then a lot of people informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does no one know about the worker retention credit you know what’s intriguing you’re talking about the banks Kevin since in the PPP loan process the federal government made it really 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 just procedure process that’s all um and here there was chaos because keep in mind in the original cares act you might not do both programs so if you had actually done PPP you might not do ERC in the original program and when they changed 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 anybody about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it in the past do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never done this before unless you have an account that went into this service and bottom line my company Kevin has been in business because 2009 and we’ve been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big big corporate customers have actually dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other federal government programs.
The employee retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose service is completely or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is offered to all companies regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s company is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar quarter in 2019. As soon as the.
employer’s gross receipts 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 qualifying incomes 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 earnings varies by whether a company had, on average, basically than.
100 employees in 2019.
Companies that concentrate on ERC filing help generally supply knowledge and support to help organizations browse the complicated procedure of claiming the credit. They can provide numerous services, including:.
How is the employee retention credit calculated? Innovation Refunds Reviews
Eligibility Evaluation: These business will assess your organization’s eligibility for the ERC based on elements such as your industry, revenue, and operations. They can assist identify if you meet the requirements for the credit and identify the maximum credit quantity you can declare.
Documents and Estimation: ERC filing services will help in gathering the needed paperwork, such as payroll records and monetary declarations, to support your claim. They will likewise help calculate the credit amount based on qualified salaries and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can review your past payroll records and financials to recognize possible opportunities for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the necessary types and paperwork on your behalf. This includes finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and assistance have developed with time. These business remain updated with the current modifications and make sure that your filings comply with the most present guidelines. If the IRS demands additional details or conducts an audit related to your ERC claim, they can also offer ongoing assistance.
It is very important to research and vet any business offering ERC filing help to guarantee their trustworthiness and know-how. Search for established firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who provide ERC filing support.
Remember that while these companies can offer important help, it’s always a great idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified choices and guarantee 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 businesses to keep and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is readily available to eligible employers, including for-profit services, tax-exempt companies, and specific governmental entities. To qualify, companies need to fulfill one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As mentioned earlier, for 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the instantly preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (approximately 70%) of qualified earnings paid to workers, consisting of certain health plan 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: Initially, organizations that got an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 enables businesses to claim the ERC even if they received a PPP loan. The exact same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and boosted, allowing qualified companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides an opportunity for companies to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment income tax return, typically Kind 941. The excess can be refunded to the employer if the credit goes beyond the amount of work taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have evolved gradually. The very best strategy is to consult with a tax expert or check out the main IRS website for the most current and detailed information concerning the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a service must satisfy among the following requirements:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is available to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Government entities and companies that got a PPP loan may have constraints on claiming the credit.
The procedure for claiming the ERC involves completing the necessary kinds and consisting of the credit on your work tax return (generally Type 941). The exact time it takes to process the credit can vary based on several aspects, consisting of the intricacy of your organization and the workload of the internal revenue service. It’s suggested to talk to a tax expert for guidance specific to your scenario.
There are a number of business that can aid with the process of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll service providers. Some well-known companies that offer help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these companies straight to ask about their fees and services.
Please keep in mind that the information supplied here is based on general knowledge and may not reflect the most current updates or changes to the ERC. It is necessary to consult with a tax professional or check out the main internal revenue service site for the most precise and up-to-date details concerning eligibility, declaring procedures, and offered assistance.
Less than 100. The credit is based if the employer had 100 or less workers on average in 2019.
on earnings paid to all workers 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 employer had more than 100 employees usually in 2019, then the credit is.
allowed only for salaries paid to workers who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply money payments however also a part of the cost of company.
offered health care. Innovation Refunds Reviews
Employers can be immediately repaid for the credit by decreasing the quantity of payroll taxes they.