Lets talk first about Quickbooks Desktop Payroll Employee Retention Credit :
Our team here what do these people doing everybody in this room is helping teach people about ERC and uh always offer a lovely breakfast and have individuals really learn more about the program we must head to the space where we are able to display a few of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of countless dollars literally Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers confirming that the check is on the method I mean you understand if you simply begin 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 just I indicate consider 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 verified 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 know when you
receive this you understand the check is chosen sure and that’s when they pay so they don’t pay anything up until they really get the cash they do not pay bottom line Wonder trust anything until this letter is validated the check is on the method they transfer it into their bank account and they can truly trust Wonder trust that the procedure has been ended up and how many you believe you have actually processed since you began this we’re about 35 000 of these for
about 6 billion dollars wow so clearly they understand what they’re doing which’s what you require you need experts 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 Fantastic here you’re at my YouTube channel we’re talking about something really essential today the staff member retention credit which the majority of you have never become aware of I certainly hadn’t become aware of it up until very just recently and learned a lot about it since this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have staff members in between five and five hundred so I’ve got the expert 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 challenging 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 inform all of us about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to find out all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost everybody it makes a big difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash cash payroll tax refund all right go on sorry I just have to make certain we got that point I indicate that’s a huge distinction a loan versus cash money I like money money that’s what we’re talking about 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 original cares Act is the ERC and yes Kevin it is a stunning difficult check in the mail where you get real cash from the IRS 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 needed to be a worker so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for employees right you had to have owned a business but it’s based on you having W-2 employees in America not 10.99. 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 have to be on payroll for the very first 6 months of 2021 on the W-2 correct so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two three and four of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you need to be on the W-2 during that period now let’s talk my preferred part money how much can you get back per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the employee’s salary to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of 7 thousand per quarter how did that occur um they just altered the rules in.
2021 versus due to the fact that 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 up to 5 thousand Max and after that 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 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is because that’s a lot of money it is now there’s a caution 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 typically Kevin is if you took PPP cash somewhere around ten thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New york city 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 certainly now the huge question is why does no one know about this because look when I initially found out about this when I initially fulfilled Josh you understand I have actually got great deals of investments in lots of business I’m a significant advocate for entrepreneurship in America and make numerous lots of investments in business owners of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it since I use 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 utilized them sensibly to stay alive during the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even called to my politician buddies Governor Senators they didn’t know about it I mean that’s how you understand that’s how false information is that there’s no details out there then a lot of individuals told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does no one know about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan process the federal government made it really 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 process procedure that’s all um and here there was turmoil due to the fact that remember in the original cares act you could not do 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 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 any person about how to.
do this does your CFO understand how to do this not actually he or she’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah a few of them are doing it as a payroll company your accountant no your accounting professional’s never done this prior to unless you have an account that went into this business and bottom line my company Kevin has been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 business so a great deal of our huge huge business clients have actually 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 property tax all of these other government programs.
The staff member 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 as much as $10,000 in incomes paid by an.
employer whose company is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is offered to all employers no matter size including tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
services who take Small Business Loans.
2. To qualify, the company has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s business is fully 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 comparable quarter in 2019. As soon as the.
employer’s gross invoices exceed 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the certifying earnings paid up to $10,000 in total.
It works for incomes paid after March 13th and before December 31, 2020.
The meaning of qualifying salaries differs by whether an employer had, usually, basically than.
100 workers in 2019.
Companies that specialize in ERC filing assistance generally supply proficiency and support to help services navigate the intricate procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Quickbooks Desktop Payroll Employee Retention Credit
Eligibility Assessment: These business will assess your company’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. They can assist figure out if you meet the requirements for the credit and recognize the optimum credit quantity you can declare.
Paperwork and Calculation: ERC filing services will help in gathering the necessary paperwork, such as payroll records and financial declarations, to support your claim. They will likewise help compute the credit quantity based on qualified earnings and other qualifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for previous quarters, these companies can examine your previous payroll records and financials to determine potential chances for retroactive credits. They can help you change previous income tax return to claim these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the essential types and documentation in your place. This includes completing Form 941 or any other required tax return.
Compliance and Updates: ERC guidelines and guidance have actually evolved gradually. These business stay upgraded with the latest modifications and guarantee that your filings comply with the most existing guidelines. If the Internal revenue service requests extra info or conducts an audit related to your ERC claim, they can likewise offer continuous support.
It is essential to research and veterinarian any business offering ERC filing assistance to guarantee their trustworthiness and competence. Try to find established firms with experience in tax and payroll services, or think about reaching out to trusted accounting firms or tax professionals who use ERC submitting assistance.
Bear in mind that while these companies can supply important help, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified decisions and guarantee accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal 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 key points about the ERC:.
Eligibility: The ERC is available to eligible companies, consisting of for-profit companies, tax-exempt companies, and specific governmental entities. To qualify, employers should satisfy one of two criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As mentioned previously, for 2021, a significant decline is specified as a 20% decline in gross invoices compared to the 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% decrease in gross receipts compared to the right away preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the company’s share of Social Security taxes. The credit quantity is equal to a portion (approximately 70%) of qualified salaries paid to staff members, including certain health insurance costs. 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: Initially, organizations that received an Income Security Program (PPP) loan were not qualified for the ERC. However, legislation passed in late 2020 and extended in 2021 permits organizations to declare the ERC even if they received a PPP loan. Nevertheless, the same wages can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively expanded and boosted, enabling eligible companies to claim the credit for certified salaries paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to amend prior-year tax returns and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment income tax return, generally Kind 941. The excess can be refunded to the company if the credit exceeds the quantity of work taxes owed.
It is necessary to note that the ERC provisions and eligibility requirements have actually evolved with time. The very best strategy is to consult with a tax expert or visit the main IRS site for the most current and detailed details concerning the ERC, including any recent legal changes or updates.
To get approved for the ERC, an organization should fulfill among the following criteria:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decrease in gross receipts. For 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease 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 instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and services that received a PPP loan might have constraints on claiming the credit.
The procedure for declaring the ERC includes finishing the needed types and including the credit on your employment tax return (normally Type 941). The exact time it takes to process the credit can differ based upon a number of factors, including the intricacy of your service and the workload of the IRS. It’s suggested to seek advice from a tax expert for assistance specific to your circumstance.
There are several business that can aid with the process of claiming the ERC. These include accounting companies, tax advisory services, and payroll provider. Some widely known business that use support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and contact these business straight to inquire about their fees and services.
Please keep in mind that the info supplied here is based on general knowledge and might not show the most recent updates or modifications to the ERC. It is essential to talk to a tax professional or check out the official IRS website for the most accurate and up-to-date information concerning eligibility, claiming procedures, and readily available assistance.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on salaries paid to all staff members whether they in fact worked or not. In other words, even if the.
staff members worked full-time and got paid for full-time work, the company still gets the credit.
Greater than 100. If the employer had more than 100 employees usually in 2019, then the credit is.
permitted only for wages paid to workers who did not work during the calendar quarter.
In both cases, “earnings” consists of not simply cash payments but likewise a portion of the cost of employer.
offered healthcare. Quickbooks Desktop Payroll Employee Retention Credit
Companies can be immediately compensated for the credit by minimizing the quantity of payroll taxes they.