Lets talk first about Owner Wages Employee Retention Credit :
Our team here what do these people doing everyone in this space is helping teach individuals about ERC and uh always provide a stunning breakfast and have people actually learn more about the program we must head to the room where we have the ability to show 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 numerous millions of dollars so these are duplicate copies of the letters that go to clients confirming that the check is on the way I suggest you understand if you simply begin to take a look at a few 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 just I suggest think about the number of real customers 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 validated and the check is on the mail in the mail from the internal revenue service heading to the client so that’s how you’re able to track it you know when you
get this you know the check is gone for sure which’s when they pay so they do not pay anything up until they in fact get 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 checking account and they can truly trust Wonder trust that the procedure has been completed and how many you believe you’ve processed given that you started this we’re about 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you require you require 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 crucial today the worker retention credit which the majority of you have never ever heard of I certainly hadn’t heard of it up until really just recently and found out a lot about it due to the fact that this is probably the most affordable cost of capital for any small company anywhere
anytime if you have employees in between five and five hundred so I’ve got the specialist 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 challenging this isn’t like PPP we simply call your bank manager and state offer me a loan it does not work there’s not a loan it’s an application and Josh is going to inform all of us 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 disappearing soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used services three 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 precisely so the ERC is a refund that’s.
correct the cash money payroll tax refund fine go on sorry I simply have to ensure we got that point I imply that’s a big difference a loan versus money money I like cash money 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 initial cares Act is the ERC and yes Kevin it is a stunning hard check in the mail where you get real money from the IRS all right so let’s discuss how it works because it seems like to me if it’s a if it’s employee retention credit that individual needed to be a worker so I’m going to make the Presumption this cash is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have actually owned an organization however it’s based upon you having W-2 workers 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 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 right so there were six quarters the program was open well stroll 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. all right so that’s how it’s measured you have to be on the W-2 throughout that period now let’s talk my favorite part cash just 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 specific Kevin is 50 of the staff member’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that occur um they simply altered the rules in.
2021 versus due to the fact that the mayhem of the pandemic so they wished 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 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 six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty 6 thousand dollars per worker that is since that’s a lot of cash it is now there’s a caveat 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 two you would minimize 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 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 cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the big question is why does nobody understand about this since look when I first found out about this when I first satisfied Josh you understand I’ve got lots of investments in lots of business I’m a significant supporter for entrepreneurship in America and make many lots of financial investments in entrepreneurs of which many suffered through the pandemic when I first became aware of this I called BS I don’t believe it due to the fact that I use 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 used them sensibly to survive throughout the pandemic so when I heard about this I said nah it can’t hold 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 false information is that there’s no information out there then a lot of people informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody learn about the worker retention credit you understand what’s interesting you’re discussing the banks Kevin since in the PPP loan process the federal government made it very 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 just procedure procedure that’s all um and here there was chaos since keep in mind in the initial cares act you could not do both programs so if you had done PPP you might refrain from doing ERC in the initial 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 federal government never ever made it clear to any person about how to.
do this does your CFO understand how to do this not actually she or he’s never done it before do the banks do it nope the banks don’t 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 before unless you have an account that entered into this business and bottom line my company Kevin has stayed in business given that 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our huge big corporate clients have dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The worker retention tax credit is a broad based refundable tax credit developed to motivate.
employers to keep employees on their payroll. The credit is 50% of up to $10,000 in salaries paid by an.
employer whose company is totally or partially suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is readily available to all employers regardless of size including tax exempt organizations. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the employer needs to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s business is completely or partly suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are listed below 50% of the comparable quarter in 2019. Once the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the certifying incomes paid up to $10,000 in overall.
It works for salaries paid after March 13th and before December 31, 2020.
The definition of qualifying incomes differs by whether an employer had, usually, basically than.
100 employees in 2019.
Business that focus on ERC filing assistance typically provide competence and assistance to assist businesses browse the intricate process of declaring the credit. They can use different services, consisting of:.
How is the employee retention credit calculated? Owner Wages Employee Retention Credit
Eligibility Assessment: These business will evaluate your service’s eligibility for the ERC based on factors such as your market, earnings, and operations. If you fulfill the requirements for the credit and recognize the optimum credit amount you can declare, they can help identify.
Paperwork and Computation: ERC filing services will help in gathering the necessary documents, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit quantity based on eligible wages and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can review your previous payroll records and financials to determine potential chances for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the needed kinds and paperwork in your place. This includes finishing Form 941 or any other required tax forms.
Compliance and Updates: ERC regulations and assistance have actually progressed with time. These business stay updated with the most recent changes and ensure that your filings comply with the most current standards. They can likewise offer ongoing support if the IRS demands additional information or performs an audit related to your ERC claim.
It is essential to research study and vet any business providing ERC filing assistance to ensure their trustworthiness and expertise. Look for established firms with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax professionals who provide ERC filing support.
Remember that while these business can offer valuable support, it’s constantly a good concept to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified decisions 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 steps. The goal of the ERC is to encourage services to retain 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 readily available to qualified companies, including for-profit businesses, tax-exempt organizations, and specific governmental entities. To qualify, employers must satisfy one of two requirements:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decrease in gross receipts. As discussed earlier, for 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial 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.
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 qualified salaries paid to workers, including particular 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: At first, businesses that got an Income Security Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. The exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and boosted, permitting qualified employers to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement offers a chance for companies to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can declare the ERC by reporting it on their employment income tax return, typically Form 941. If the credit exceeds the quantity of employment taxes owed, the excess can be refunded to the employer.
It is very important to note that the ERC arrangements and eligibility requirements have developed in time. The best course of action is to consult with a tax professional or go to the main internal revenue service website for the most comprehensive and current info regarding the ERC, consisting of any current legal changes or updates.
To qualify for the ERC, a service should satisfy one of the following requirements:.
The business operations were totally or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross invoices. For 2021, a significant decline is defined 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 exact same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to services of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that received a PPP loan might have restrictions on declaring the credit.
The process for declaring the ERC includes completing the necessary forms and including the credit on your employment income tax return (generally Kind 941). The exact time it takes to process the credit can differ based on several aspects, including the complexity of your service and the workload of the IRS. It’s suggested to consult with a tax professional for assistance specific to your scenario.
There are several business that can aid with the process of claiming the ERC. These include accounting firms, tax advisory services, and payroll company. Some widely known companies that offer assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research study and contact these business straight to ask about their services and fees.
Please keep in mind that the information provided here is based upon general knowledge and might not show the most recent updates or changes to the ERC. It’s important to seek advice from a tax expert or visit the main IRS website for the most accurate and up-to-date information concerning eligibility, declaring treatments, and available support.
Less than 100. The credit is based if the employer had 100 or less staff members on average in 2019.
on incomes paid to all staff members whether they in fact worked or not. To put it simply, even if the.
workers worked full time and made money for full-time work, the employer still gets the credit.
Greater than 100. The credit is if the company had more than 100 staff members on average in 2019.
enabled just for incomes paid to employees who did not work throughout the calendar quarter.
In both cases, “wages” consists of not just money payments but likewise a portion of the cost of company.
provided health care. Owner Wages Employee Retention Credit
Companies can be immediately compensated for the credit by lowering the quantity of payroll taxes they.