Lets talk first about Innovation Refunds West Des Moines :
Our team here what do these men doing everybody in this space is helping teach individuals about ERC and uh constantly provide a beautiful breakfast and have people really learn about the program we need to head to the room where we are able to display a few of the checks that we are getting for business and I wish to see that what is this this is uh hundreds of countless dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I indicate you know if you simply start to take a look at some of these here I mean this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I suggest it’s just I mean think about how many actual 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 validated and the check is on the mail in the mail from the IRS heading to the customer so that’s how you’re able to track it you understand when you
receive this you know the check is gone for sure which’s when they pay so they don’t pay anything up until they actually receive the cash they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the method they deposit it into their checking account and they can truly trust Wonder trust that the procedure has been finished and how many you think you have actually processed since you started this we have to do with 35 000 of these for
about six billion dollars wow so clearly they understand what they’re doing and that’s what you need you need professionals 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 really essential today the worker retention credit which most of you have never heard of I definitely hadn’t become aware of it up until really just recently and learned a lot about it since this is most likely the lowest cost of capital for any small company anywhere
anytime if you have workers in between five and five hundred so I have actually got the specialist 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 difficult this isn’t like PPP we just call your bank supervisor and say give me a loan it does not work there’s not a loan it’s an application and Josh is going to inform us all 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 going away very soon you got to discover all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act used companies 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everyone it makes a big difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund all right go on sorry I simply need to make sure we got that point I indicate that’s a big difference a loan versus cash cash I like cash money that’s what we’re discussing okay 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 difficult check in the mail where you get actual cash 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 worker retention credit that person had to be an employee so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have owned a service but it’s based on you having W-2 employees 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 six months of 2021 on the W-2 proper so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters 2 three and 4 of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part money just how much can you get back per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’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 wage to a maximum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus since the mayhem 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 up to 5 thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a lot 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 reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money someplace 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 money you would still get a million dollar in the mail from the internal revenue service so it’s big obviously now the big concern is why does nobody know about this due to the fact that look when I initially found out about this when I initially met Josh you know I’ve got lots of financial investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many lots of financial investments in business owners of which numerous suffered through the pandemic when I first found out about this I called BS I do not 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 which were well been worthy of and we utilized them wisely to stay alive 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 political leader buddies Guv Senators they didn’t know about it I indicate that’s how you understand that’s how misinformation is that there’s no details out there then a lot of individuals 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 employee retention credit you know what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan procedure 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 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 procedure that’s all um and here there was mayhem because remember in the original cares act you might not do both programs so if you had done PPP you could not do ERC in the original program and when they altered 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 truly she or he’s never ever done it before 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 accountant no your accountant’s never ever done this prior to unless you have an account that entered into this company and bottom line my firm Kevin has been in business considering that 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 great deal of our huge big business customers have worked with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in wages paid by an.
Due to the fact that of COVID-19 or whose gross invoices, company whose company is completely or partially suspended.
decline by more than 50%.
1. The credit is available to all employers regardless of size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small Business Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s organization is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying salaries differs by whether an employer had, typically, basically than.
100 staff members in 2019.
Business that focus on ERC filing help typically supply competence and support to assist services navigate the intricate process of claiming the credit. They can offer various services, including:.
How is the employee retention credit calculated? Innovation Refunds West Des Moines
Eligibility Evaluation: These business will examine your business’s eligibility for the ERC based on elements such as your industry, earnings, and operations. If you fulfill the requirements for the credit and recognize the maximum credit quantity you can claim, they can assist determine.
Documents and Estimation: ERC filing services will help in gathering the required documents, such as payroll records and financial statements, to support your claim. They will likewise assist determine the credit quantity based on qualified incomes and other qualifying expenditures.
Retroactive Claim Review: If you are qualified to claim the ERC for previous quarters, these companies can review your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you amend previous income tax return to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the needed kinds and paperwork in your place. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and assistance have progressed over time. These business stay upgraded with the latest changes and guarantee that your filings adhere to the most existing guidelines. They can likewise supply ongoing assistance if the internal revenue service demands additional details or conducts an audit related to your ERC claim.
It is necessary to research and veterinarian any business offering ERC filing support to guarantee their reliability and proficiency. Look for recognized companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax experts who offer ERC submitting assistance.
Keep in mind that while these business can supply valuable assistance, it’s constantly an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will help you make notified 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 objective of the ERC is to motivate companies to maintain 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 qualified employers, including for-profit services, tax-exempt organizations, and certain governmental entities. To qualify, employers must meet one of two criteria:.
Business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross invoices. As discussed earlier, for 2021, a substantial decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Quantity: 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 salaries paid to staff members, consisting of 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, services that received a Paycheck Security Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to claim the ERC even if they got a PPP loan. The exact same salaries can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, enabling eligible employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for organizations to modify prior-year tax returns and get refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work tax returns, usually Kind 941. The excess can be refunded to the company if the credit goes beyond the amount of employment taxes owed.
It is very important to note that the ERC arrangements and eligibility requirements have actually developed over time. The very best course of action is to consult with a tax professional or visit the main IRS site for the most up-to-date and in-depth details relating to the ERC, including any recent legislative modifications or updates.
To qualify for the ERC, a business must meet among the following criteria:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a substantial decline in gross invoices. For 2021, a significant decline is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is specified as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and companies that received a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC involves finishing the required kinds and including the credit on your employment tax return (usually Type 941). The exact time it requires to process the credit can differ based on numerous elements, including the complexity of your service and the workload of the IRS. It’s suggested to seek advice from a tax expert for guidance particular to your situation.
There are several companies that can assist with the procedure of claiming the ERC. These include accounting firms, tax advisory services, and payroll provider. Some widely known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research and call these business straight to inquire about their fees and services.
Please keep in mind that the information provided here is based on general knowledge and might not show the most recent updates or modifications to the ERC. It is necessary to talk to a tax expert or check out the official IRS site for the most precise and current info regarding eligibility, declaring procedures, and readily available assistance.
Less than 100. The credit is based if the company had 100 or less employees on average in 2019.
on salaries paid to all staff members whether they actually worked or not. Simply put, even if the.
staff members worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the employer had more than 100 employees on average in 2019.
enabled only for earnings paid to staff members who did not work during the calendar quarter.
In both cases, “incomes” consists of not simply money payments however also a portion of the cost of company.
supplied health care. Innovation Refunds West Des Moines
Employers can be right away compensated for the credit by lowering the amount of payroll taxes they.