Lets talk first about Nys Seed Money And Employee Retention Credit :
Our group here what do these guys doing everybody in this room is helping teach people about ERC and uh always offer a stunning breakfast and have individuals really find out about the program we ought to head to the room where we are able to display a few of the checks that we are getting for companies and I wish to see that what is this this is uh hundreds of countless dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I imply you know if you just start to 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 suggest it’s simply I mean think of 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’re able to track it you know when you
receive this you understand the check is chosen sure which’s when they pay so they don’t pay anything up until they in fact receive the cash they don’t pay bottom line Wonder trust anything till this letter is verified the check is on the way they deposit it into their bank account and they can genuinely trust Wonder trust that the procedure has been completed and the number of you think you have actually processed given that you began this we have to do with 35 000 of these for
about 6 billion dollars wow so plainly they understand what they’re doing and that’s what you require 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 Wonderful here you’re at my YouTube channel we’re talking about something truly crucial today the employee retention credit which the majority of you have never become aware of I definitely had not heard of it until extremely just recently and found out a lot about it since this is most likely the lowest cost of capital for any small business anywhere
anytime if you have workers between five and five hundred so I’ve got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s difficult this isn’t like PPP we simply call up 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 tell us all about it and how to get it and why I have actually ended up being yes the Ambassador and paid representative for this I love this program it’s going away soon you got to find out everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s just start there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided businesses 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge distinction right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I simply have to ensure we got that point I imply that’s a huge difference a loan versus money money I like money cash that’s what we’re talking 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 original cares Act is the ERC and yes Kevin it is a beautiful difficult check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s staff member retention credit that person had to be a worker so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for workers right you needed to have owned a company however it’s based upon you having W-2 employees in America not 10.99. As long as you had W-2 employees 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 right so there were six quarters the program was open well stroll us through the six quarters so you had quarters two three and 4 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 during that duration now let’s talk my preferred 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 employee for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to an optimum of seven thousand per quarter how did that occur um they just changed the rules in.
2021 versus because 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 approximately five thousand Max and then what happens 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 6 thousand dollars per staff member that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would have to be reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around 10 thousand dollars a person so let’s say 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 huge obviously now the big concern is why does nobody learn about this since appearance when I first found out about this when I initially met Josh you know I’ve got great deals of investments in lots of business I’m a significant supporter for entrepreneurship in America and make lots of numerous financial investments in entrepreneurs of which lots of suffered through the pandemic when I initially found out about this I called BS I do not think 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 been worthy of and we used them wisely to survive throughout the pandemic so when I became aware of this I stated nah it can’t be true however when I dug around I even contacted us to my politician good friends Governor Senators they didn’t learn about it I mean that’s how you know that’s how misinformation is that there’s no info out there then a lot of people informed me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one know about the worker retention credit you know what’s intriguing you’re discussing the banks Kevin since in the PPP loan process 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 country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just process process that’s all um and here there was mayhem due to the fact that remember in the original cares act you could refrain from doing both programs so if you had actually done PPP you could 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 anyone about how to.
do this does your CFO know how to do this not truly he or she’s never done it previously do the banks do it nope the banks don’t do it the payroll companies yeah some of them are doing it as a payroll business your accountant no your accountant’s never ever done this before unless you have an account that went into this organization and bottom line my company Kevin has stayed in business considering that 2009 and we’ve been working with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big huge corporate customers have worked with bottom line to recuperate other federal government programs we’ve done sales tax and use tax unemployment tax work chance 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 encourage.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
Because of COVID-19 or whose gross invoices, employer whose organization is completely or partly suspended.
decline by more than 50%.
1. The credit is available to all companies regardless of size including 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 meet one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the employer’s business is totally or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are listed below 50% of the comparable quarter in 2019. When the.
company’s gross invoices go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the certifying wages paid up to $10,000 in overall.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of certifying salaries differs by whether a company had, usually, basically than.
100 workers in 2019.
Companies that focus on ERC filing assistance typically offer proficiency and assistance to assist services browse the complex procedure of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Nys Seed Money And Employee Retention Credit
Eligibility Assessment: These companies will assess your business’s eligibility for the ERC based upon elements such as your market, earnings, and operations. They can help identify if you meet the requirements for the credit and identify the maximum credit amount you can claim.
Documents and Computation: ERC filing services will help in collecting the required documents, such as payroll records and financial statements, to support your claim. They will also assist compute the credit amount based upon eligible wages and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to claim the ERC for previous quarters, these companies can review your past payroll records and financials to determine possible chances for retroactive credits. They can assist you change previous income tax return to claim these refunds.
Filing Support: Business focusing on ERC filings will prepare and send the required types and documentation in your place. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have progressed with time. These business stay updated with the most recent modifications and ensure that your filings adhere to the most existing standards. If the Internal revenue service requests extra details or performs an audit related to your ERC claim, they can also offer continuous support.
It is essential to research study and vet any company using ERC filing help to guarantee their credibility and expertise. Try to find recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting firms or tax experts who provide ERC submitting assistance.
Remember that while these companies can supply important assistance, it’s always a great idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to encourage companies to maintain and pay their employees 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 companies, including for-profit services, tax-exempt organizations, and particular governmental entities. To qualify, companies need to satisfy one of two criteria:.
The business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As discussed previously, for 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross invoices 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 amounts to a percentage (as much as 70%) of certified earnings paid to staff members, consisting of particular health insurance expenses. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, companies that received an Income Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they received a PPP loan. The same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, permitting qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for services to amend prior-year income tax return and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, typically Type 941. The excess can be reimbursed to the company if the credit exceeds the amount of employment taxes owed.
It’s important to note that the ERC provisions and eligibility criteria have evolved in time. The very best course of action is to seek advice from a tax professional or go to the official IRS site for the most detailed and up-to-date info regarding the ERC, including any recent legislative modifications or updates.
To qualify for the ERC, a business should fulfill among the following requirements:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. For 2021, a significant decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant 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.
The ERC is offered to organizations of all sizes, consisting of tax-exempt companies, but there are some exceptions. For instance, government entities and services that received a PPP loan might have constraints on claiming the credit.
The procedure for declaring the ERC includes completing the necessary forms and including the credit on your work income tax return (normally Type 941). The exact time it requires to process the credit can differ based on a number of aspects, consisting of the intricacy of your service and the workload of the internal revenue service. It’s recommended to seek advice from a tax professional for guidance particular to your scenario.
There are several companies that can help with the procedure of declaring the ERC. Some widely known companies that provide help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the info offered here is based on basic understanding and may not show the most recent updates or changes to the ERC. It is essential to seek advice from a tax expert or visit the main internal revenue service website for the most precise and updated info regarding eligibility, claiming procedures, and offered assistance.
Less than 100. If the company had 100 or fewer workers usually in 2019, then the credit is based.
on earnings paid to all employees whether they in fact worked or not. To put it simply, even if the.
employees 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.
enabled just for wages paid to employees who did not work throughout the calendar quarter.
In both cases, “incomes” consists of not simply money payments but likewise a part of the cost of employer.
provided healthcare. Nys Seed Money And Employee Retention Credit
Companies can be immediately repaid for the credit by decreasing the amount of payroll taxes they.