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Our team here what do these guys doing everybody in this space is assisting teach people about ERC and uh always provide a lovely breakfast and have people actually learn more about the program we need to 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 numerous millions of dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the way I indicate you understand if you just 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 mean it’s just I indicate consider 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 confirmed 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
get this you know the check is chosen sure and that’s when they pay so they don’t pay anything until they really get the money they do not pay bottom line Wonder trust anything up until this letter is verified the check is on the way they transfer it into their savings account and they can really rely on Wonder trust that the process has been completed and the number of you think you have actually processed given that you started this we have to do with 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 professionals 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 talking about something really crucial today the worker retention credit which the majority of you have never ever heard of I certainly had not become aware of it till extremely recently and found out a lot about it because this is probably the most affordable expense of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I’ve got the professional with me this is Josh Fox he’s the creator and CEO of bottom line Principles they’re the largest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we simply phone your bank manager 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 spokesperson for this I like this program it’s going away soon you got to learn everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered services three 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.
fix the cash money payroll tax refund okay go on sorry I just need to make certain we got that point I imply that’s a huge 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 initial cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get real money from the IRS all right so let’s speak about how it works due to the fact that it seems like to me if it’s a if it’s staff member retention credit that person 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 shareholders it’s for staff members right you needed to have 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 very first 6 months of 2021 on the W-2 proper 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. all right 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 cash how much can you return per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s income to a maximum of five 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 seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus because the turmoil of the pandemic so they wished 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 up to 5 thousand Max and after that what takes place 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 six thousand dollars per staff member that is since that’s a great deal of money it is now there’s a caution here the PPP cash would need to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP cash somewhere around 10 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 workers and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge clearly now the big question is why does no one know about this since appearance when I first became aware of this when I first satisfied Josh you know I’ve got great deals of investments in great deals of companies I’m a major advocate for entrepreneurship in America and make lots of numerous investments in business owners of which many suffered through the pandemic when I first heard about this I called BS I do not think it since I use the PPP we went through the cash center Banks to get it it was extremely 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 throughout the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even contacted us to my politician pals Governor Senators they didn’t know about it I indicate that’s how you understand that’s how misinformation is that there’s no information out there then a lot of individuals told me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody understand about the staff member retention credit you know what’s interesting you’re discussing the banks Kevin since in the PPP loan procedure the federal government made it very clear that if you desired 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 mayhem 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 initial program and when they changed the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anyone about how to.
do this does your CFO understand how to do this not actually he or she’s never done it in the past do the banks do it nope the banks don’t do it the payroll business yeah some of them are doing it as a payroll business your accountant no your accounting professional’s never done this prior to unless you have an account that went into this service and bottom line my company Kevin has actually been in business considering that 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our huge huge corporate clients have actually worked with bottom line to recuperate other government programs we’ve done sales tax and utilize tax joblessness 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 developed to motivate.
employers to keep staff members on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
employer whose business is completely or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is offered to all companies despite size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small company Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are listed below 50% of the similar quarter in 2019. When the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in total.
It is effective for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying salaries differs by whether an employer had, typically, more or less than.
100 employees in 2019.
Companies that concentrate on ERC filing assistance normally supply competence and support to assist companies navigate the intricate process of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Innovation Refunds Scams
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon elements such as your market, earnings, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can declare, they can assist identify.
Documents and Computation: ERC filing services will help in gathering the essential documentation, such as payroll records and monetary statements, to support your claim. They will likewise assist determine the credit quantity based on qualified salaries and other certifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to determine potential opportunities for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the required forms and documentation on your behalf. This consists of completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have evolved with time. These companies remain upgraded with the most recent modifications and ensure that your filings comply with the most current guidelines. If the Internal revenue service demands additional details or carries out an audit associated to your ERC claim, they can also provide continuous assistance.
It’s important to research study and veterinarian any company providing ERC filing help to ensure their trustworthiness and knowledge. Look for established firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax experts who use ERC filing support.
Keep in mind that while these companies can offer valuable support, it’s constantly an excellent 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 objective of the ERC is to motivate services to keep and pay their staff members during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to qualified companies, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To certify, companies must meet one of two requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. As mentioned previously, for 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts 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 quantity is equal to a percentage (up to 70%) of certified earnings paid to workers, including specific health insurance expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that got an Income Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits businesses to declare the ERC even if they received a PPP loan. The very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, permitting qualified employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies 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, usually Kind 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the employer.
It is very important to note that the ERC provisions and eligibility criteria have actually developed in time. The best course of action is to consult with a tax professional or go to the official internal revenue service website for the most updated and detailed details regarding the ERC, including any recent legislative modifications or updates.
To qualify for the ERC, an organization must fulfill among the following criteria:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is readily available to organizations of all sizes, including tax-exempt companies, but there are some exceptions. For example, federal government entities and businesses that got a PPP loan might have constraints on claiming the credit.
The process for claiming the ERC includes finishing the needed forms and consisting of the credit on your employment income tax return (normally Kind 941). The exact time it requires to process the credit can vary based upon several factors, including the intricacy of your business and the workload of the internal revenue service. It’s suggested to talk to a tax expert for assistance particular to your scenario.
There are numerous companies that can help with the procedure of claiming the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some well-known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these business directly to inquire about their fees and services.
Please note that the info provided here is based upon basic knowledge and may not show the most current updates or changes to the ERC. It is very important to seek advice from a tax expert or check out the main IRS site for the most accurate and updated info relating to eligibility, claiming treatments, and available assistance.
Less than 100. If the employer had 100 or less employees on average in 2019, then the credit is based.
on salaries paid to all staff members whether they actually worked or not. To put it simply, even if the.
staff members worked full time and earned money for full time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 employees on average in 2019.
allowed just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply cash payments however also a part of the cost of company.
provided health care. Innovation Refunds Scams
Companies can be right away reimbursed for the credit by reducing the amount of payroll taxes they.