Lets talk first about Is Innovation Refunds Legit :
Our team here what do these guys doing everybody in this space is helping teach people about ERC and uh always supply a gorgeous breakfast and have individuals actually find out about the program we should head to the space where we are able to display some of the checks that we are getting for companies and I wish to see that what is this this is uh numerous countless dollars literally Kevin numerous millions of dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I imply you understand if you simply start to take a 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 mean it’s just I suggest think of the number of real 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 IRS heading to the customer so that’s how you’re able to track it you know when you
get this you know the check is opted for sure which’s when they pay so they do not pay anything till they really get the money they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they deposit it into their checking account and they can truly rely on Wonder trust that the process has actually been ended up and how many you think you’ve processed considering that you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they know what they’re doing which’s what you need you need 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 speaking about something actually essential today the worker retention credit which most of you have never heard of I definitely hadn’t become aware of it up until extremely recently and learned a lot about it because this is most likely the lowest expense of capital for any small company anywhere
anytime if you have staff members between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Concepts 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 just phone your bank manager and say offer 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’ve ended up being yes the Ambassador and paid spokesperson for this I like this program it’s disappearing soon you got to discover everything about it let’s talk worker 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 organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge distinction right there 2 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 simply need to make sure we got that point I suggest that’s a big distinction a loan versus money money I like money cash that’s what we’re speaking 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 original cares Act is the ERC and yes Kevin it is a beautiful difficult check in the mail where you get actual cash from the internal revenue service 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 individual had to be a staff member so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for staff members right you needed to have owned an organization 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 eligible so you need 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 correct so there were 6 quarters the program was open well walk us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. okay so that’s how it’s measured you have to be on the W-2 throughout that duration now let’s talk my favorite part cash just how much can you get back per employee that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus since the mayhem 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 five thousand Max and after that what happens 21 000 Max in 2021 oh that’s how you develop twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of cash it is now there’s a caution here the PPP cash would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would decrease the 26 000 so what we’re seeing on average Kevin is if you took PPP cash someplace around ten thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city 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 big question is why does nobody learn about this since look when I initially found out about this when I first satisfied Josh you understand I have actually got lots of investments in lots of companies I’m a major advocate for entrepreneurship in America and make lots of numerous financial investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I do not think it due to the fact that I utilize the PPP we went through the money 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 should have and we used them wisely to survive throughout the pandemic so when I heard about this I stated nah it can’t be true but when I dug around I even called to my politician buddies Guv Senators they didn’t know about it I imply that’s how you understand that’s how false information is that there’s no details out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP also not real 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 because in the PPP loan procedure the federal government made it extremely 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process that’s all um and here there was turmoil since keep in mind in the original cares act you might not do both programs so if you had actually done PPP you could not do ERC in the original program and when they altered the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the government never made it clear to any person about how to.
do this does your CFO understand how to do this not really he or she’s never ever 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 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 firm Kevin has actually been in business given that 2009 and we have actually been working with the federal government and the state 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 recover other federal government programs we’ve done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to motivate.
companies to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
employer whose business is fully or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is readily available to all employers no matter size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s organization is completely or partly suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying wages paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The meaning of qualifying salaries varies by whether a company had, usually, more or less than.
100 workers in 2019.
Companies that focus on ERC filing support usually supply expertise and assistance to help services navigate the complicated procedure of claiming the credit. They can provide different services, including:.
How is the employee retention credit calculated? Is Innovation Refunds Legit
Eligibility Assessment: These business will evaluate your business’s eligibility for the ERC based on factors such as your industry, revenue, and operations. If you meet the requirements for the credit and determine the maximum credit quantity you can claim, they can help figure out.
Documents and Computation: ERC filing services will help in collecting the necessary paperwork, such as payroll records and financial statements, to support your claim. They will likewise assist compute the credit amount based on qualified salaries and other qualifying expenses.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these companies can review your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can help you modify prior income tax return to declare these refunds.
Filing Help: Companies specializing in ERC filings will prepare and send the needed kinds and documentation in your place. This consists of finishing Type 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have actually evolved in time. These companies remain updated with the most recent modifications and guarantee that your filings abide by the most present guidelines. If the IRS requests extra details or performs an audit related to your ERC claim, they can also provide ongoing support.
It is necessary to research and veterinarian any company offering ERC filing help to guarantee their reliability and knowledge. Search for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who offer ERC submitting assistance.
Remember that while these companies can offer valuable support, it’s always a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief procedures. The objective of the ERC is to encourage services 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 available to qualified companies, including for-profit organizations, tax-exempt companies, and particular governmental entities. To certify, employers need to satisfy one of two criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned previously, 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 substantial decrease is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit quantity amounts to a portion (approximately 70%) of qualified wages paid to employees, 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: At first, businesses that got a Paycheck Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they got a PPP loan. Nevertheless, the very same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and enhanced, permitting qualified employers to claim the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for businesses to change prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, normally Kind 941. The excess can be reimbursed to the company if the credit exceeds the amount of employment taxes owed.
It’s important to keep in mind that the ERC provisions and eligibility criteria have actually evolved gradually. The best course of action is to speak with a tax expert or visit the official IRS site for the most up-to-date and comprehensive details regarding the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a company needs to fulfill one of the following requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The process for claiming the ERC includes finishing the necessary kinds and including the credit on your work income tax return (typically Form 941). The exact time it requires to process the credit can differ based upon a number of elements, consisting of the complexity of your business and the workload of the IRS. It’s advised to talk to a tax expert for guidance specific to your situation.
There are numerous business that can assist with the process of declaring the ERC. These include accounting firms, tax advisory services, and payroll service providers. Some popular business that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and call these business straight to ask about their services and fees.
Please keep in mind that the info offered here is based on basic understanding and might not reflect the most recent updates or changes to the ERC. It is very important to consult with a tax expert or visit the main IRS site for the most current and precise info concerning eligibility, declaring treatments, and available assistance.
Less than 100. If the company had 100 or less employees on average in 2019, then the credit is based.
on wages paid to all employees whether they actually worked or not. In other words, even if the.
workers 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 workers on average in 2019.
permitted only for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “wages” includes not simply money payments but also a portion of the expense of company.
supplied health care. Is Innovation Refunds Legit
Companies can be right away compensated for the credit by decreasing the amount of payroll taxes they.