Lets talk first about Ppp Loan Forgiveness And Employee Retention Credit :
Our group here what do these guys doing everybody in this room is helping teach individuals about ERC and uh always supply a stunning breakfast and have individuals truly learn more about the program we ought to head to the room where we have the ability to display some of the checks that we are getting for companies and I ‘d like to see that what is this this is uh hundreds of countless dollars actually Kevin numerous millions of dollars so these are replicate copies of the letters that go to clients validating that the check is on the way I suggest you know if you just begin to 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 simply I indicate consider the number of actual 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 confirmed and the check is on the mail in the mail from the IRS heading to the customer so that’s how you have the ability to track it you understand when you
receive this you understand the check is opted for sure which’s when they pay so they don’t pay anything up until they actually get the money they do not pay bottom line Wonder trust anything up until this letter is confirmed the check is on the way they transfer it into their checking account and they can truly trust Wonder trust that the process has been ended up and how many you believe you’ve processed because you began this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing which’s what you need 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 discussing something truly crucial today the employee retention credit which the majority of you have actually never become aware of I definitely had not become aware of it until very just recently and found out a lot about it because this is probably the most affordable 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 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 call up your bank supervisor and say give me a loan it doesn’t 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 representative for this I love 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 created the cares Act and the cares act used businesses 3 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 distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the money cash payroll tax refund okay go on sorry I just have to make sure we got that point I mean that’s a huge difference a loan versus money money I like cash cash that’s what we’re discussing all right 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 tough check in the mail where you get actual cash from the IRS all right so let’s discuss how it works since it sounds like to me if it’s a if it’s staff member retention credit that individual needed to be an employee so I’m going to make the Presumption this money is not for the owner not for individuals 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. so as long as you had W-2 staff members 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 need to be on payroll for the first six months of 2021 on the W-2 proper so there were six 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 three of 2021. fine so that’s how it’s determined you need to be on the W-2 during that duration now let’s talk my preferred part money how much can you get back per employee that was on a W-2 in those 6 quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s wage to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the worker’s wage to a maximum of 7 thousand per quarter how did that happen um they simply changed the rules in.
2021 versus because 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 then what takes place 21 000 Max in 2021 oh that’s how you create twenty 6 thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because 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 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 a person so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial clearly now the huge question is why does nobody know about this because look when I first became aware of this when I initially satisfied Josh you understand I have actually got great deals of financial investments in great deals of business I’m a major advocate for entrepreneurship in America and make many lots of investments in entrepreneurs of which many suffered through the pandemic when I first heard about this I called BS I don’t believe it since I use the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well should have and we utilized them wisely to stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true however when I dug around I even called to my political leader buddies Guv Senators they didn’t learn about it I indicate that’s how you understand that’s how false information is that there’s no details out there then a lot of people informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does nobody learn about the staff member retention credit you understand what’s interesting 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 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 process process that’s all um and here there was turmoil due to the fact that keep in mind in the initial cares act you might refrain from doing both programs so if you had done PPP you might refrain from doing ERC in the original program and when they changed the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the government never ever made it clear to any person about how to.
do this does your CFO know how to do this not actually he or she’s never ever done it before 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 company your accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this organization and bottom line my company Kevin has actually stayed in business considering that 2009 and we have actually been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate clients have dealt 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 created to motivate.
employers to keep staff members on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
Because of COVID-19 or whose gross receipts, employer whose business is completely or partially suspended.
decline by more than 50%.
1. The credit is readily available to all companies regardless of size consisting of tax exempt organizations. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small company Loans.
2. To qualify, the company needs to satisfy one of two alternative tests. The tests are calculated 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 employer’s gross invoices are below 50% of the similar quarter in 2019. Once the.
company’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The amount of the credit is 50% of the qualifying salaries paid up to $10,000 in overall.
It works for incomes paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes differs by whether an employer had, usually, basically than.
100 staff members in 2019.
Companies that focus on ERC filing support typically provide know-how and support to assist companies browse the intricate procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Ppp Loan Forgiveness And Employee Retention Credit
Eligibility Evaluation: These business will evaluate your business’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. If you satisfy the requirements for the credit and identify the maximum credit amount you can declare, they can help identify.
Documentation and Computation: ERC filing services will help in collecting the essential paperwork, such as payroll records and financial declarations, to support your claim. They will also assist compute the credit amount based upon eligible incomes and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these business can examine your past payroll records and financials to determine prospective chances for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and submit the necessary kinds and documentation in your place. This consists of completing Type 941 or any other required tax return.
Compliance and Updates: ERC regulations and assistance have evolved gradually. These companies remain updated with the most recent changes and ensure that your filings comply with the most existing standards. If the Internal revenue service requests additional info or conducts an audit related to your ERC claim, they can likewise supply continuous support.
It is necessary to research study and vet any company offering ERC filing support to ensure their credibility and competence. Search for recognized companies with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax experts who provide ERC submitting support.
Bear in mind that while these companies can offer important support, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will assist you make notified decisions and guarantee precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The goal of the ERC is to motivate companies to retain and pay their staff members during 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 employers, including for-profit organizations, tax-exempt organizations, and certain governmental entities. To certify, companies should fulfill one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross invoices. As mentioned earlier, for 2021, a substantial decline is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease 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 amounts to a portion (up to 70%) of qualified incomes paid to workers, consisting of specific health plan costs. 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 received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they got a PPP loan. However, the same salaries can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, permitting qualified employers to declare the credit for certified salaries paid as far back as March 13, 2020. This retroactive provision provides a chance for services to modify prior-year income tax return and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work tax returns, generally Type 941. The excess can be reimbursed to the company if the credit goes beyond the quantity of work taxes owed.
It is very important to keep in mind that the ERC arrangements and eligibility requirements have actually evolved over time. The very best course of action is to talk to a tax professional or visit the official IRS site for the most updated and in-depth info concerning the ERC, including any current legal changes or updates.
To qualify for the ERC, a service should meet among the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a significant decline is specified as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decrease in gross receipts compared to the same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and organizations that got a PPP loan might have limitations on declaring the credit.
The procedure for declaring the ERC involves completing the essential types and including the credit on your work tax return (generally Kind 941). The exact time it takes to process the credit can differ based upon a number of factors, consisting of the intricacy of your business and the workload of the IRS. It’s recommended to talk to a tax professional for assistance specific to your circumstance.
There are several companies that can help with the process of declaring the ERC. Some popular business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the details supplied here is based on general understanding and may not reflect the most current updates or changes to the ERC. It is essential to talk to a tax expert or go to the official IRS site for the most current and precise details concerning eligibility, claiming treatments, and offered help.
Less than 100. The credit is based if the employer had 100 or fewer employees on average in 2019.
on earnings paid to all employees whether they in fact worked or not. In other words, even if the.
workers worked full-time and got paid 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 only for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “salaries” includes not simply cash payments however also a portion of the cost of employer.
supplied healthcare. Ppp Loan Forgiveness And Employee Retention Credit
Employers can be right away repaid for the credit by reducing the amount of payroll taxes they.