Lets talk first about Supply Chain Employee Retention Credit :
Our group here what do these men doing everyone in this space is assisting teach individuals about ERC and uh always supply a beautiful breakfast and have people truly learn more about the program we ought to head to the room 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 millions of dollars literally Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients validating that the check is on the method I imply you know if you just start to take a look at some of these here I suggest this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I imply it’s simply I indicate consider how many 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 have the ability to track it you understand when you
get this you understand the check is chosen sure which’s when they pay so they do not pay anything till they in fact get the cash they do not pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they deposit it into their savings account and they can genuinely rely on Wonder trust that the process has actually been ended up and the number of you believe you have actually processed considering that you began this we’re about 35 000 of these for
about six billion dollars wow so clearly they know what they’re doing and that’s what you require you require experts 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 Fantastic here you’re at my YouTube channel we’re discussing something really crucial today the staff member retention credit which most of you have never heard of I certainly hadn’t heard of it until very just recently and learned a lot about it due to the fact that this is most likely the lowest expense of capital for any small business anywhere
anytime if you have staff members in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the creator 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 just contact your bank manager and state offer me a loan it doesn’t 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 spokesperson for this I like this program it’s disappearing very soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered businesses 3 chances you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a big difference right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash cash payroll tax refund okay go on sorry I simply need to make sure we got that point I indicate that’s a big difference a loan versus money money I like cash cash that’s what we’re speaking 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 lovely hard check in the mail where you get actual money from the IRS all right so let’s discuss how it works due to the fact that it sounds like to me if it’s a if it’s employee retention credit that individual had to be a staff member so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for shareholders it’s for employees right you needed to have owned a company but it’s based upon you having W-2 workers in America not 10.99. so as long as you had W-2 employees 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 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay so that’s how it’s determined you have to be on the W-2 throughout that period now let’s talk my favorite part money 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 exact Kevin is 50 of the worker’s wage to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the chaos 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 approximately 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you create 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 because 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 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing typically Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big obviously now the huge concern is why does no one know about this since appearance when I first heard about this when I initially satisfied Josh you understand I’ve got lots 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 lots of suffered through the pandemic when I first heard about this I called BS I don’t believe it due to the fact that 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 survive during the pandemic so when I became aware of this I stated nah it can’t hold true but when I dug around I even contacted us to my politician buddies Guv Senators they didn’t know about it I imply that’s how you know that’s how false information is that there’s no details out there then a lot of individuals informed me well you can’t get it due to the fact that you took the PPP likewise not true so let’s ask Josh why does nobody learn about the employee retention credit you understand what’s interesting you’re talking about the banks Kevin due to the fact that in the PPP loan procedure 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 big 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 just process procedure that’s all um and here there was mayhem since remember in the initial cares act you might not do both programs so if you had actually done PPP you might refrain from doing ERC in the initial program and when they altered 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 any person about how to.
do this does your CFO know how to do this not actually he or she’s never 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 company your accountant no your accountant’s never done this before unless you have an account that went into this service and bottom line my firm Kevin has actually stayed in business because 2009 and we’ve been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big big business clients have actually dealt with bottom line to recover other federal government programs we’ve done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit created to encourage.
companies to keep staff members on their payroll. The credit is 50% of up to $10,000 in wages paid by an.
company whose business is totally or partially suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is readily available to all employers despite size including tax exempt companies. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the employer has to fulfill one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
company’s gross receipts exceed 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Computation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The definition of certifying salaries varies by whether a company had, usually, basically than.
100 workers in 2019.
Companies that concentrate on ERC filing support typically offer knowledge and support to assist services browse the complicated procedure of claiming the credit. They can use various services, consisting of:.
How is the employee retention credit calculated? Supply Chain Employee Retention Credit
Eligibility Assessment: These business will evaluate your company’s eligibility for the ERC based upon aspects such as your industry, income, and operations. They can help identify if you satisfy the requirements for the credit and recognize the maximum credit amount you can claim.
Documentation and Estimation: ERC filing services will help in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will also assist determine the credit quantity based upon eligible salaries and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to recognize potential opportunities for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Support: Companies focusing on ERC filings will prepare and send the needed types and documents on your behalf. This consists of completing Type 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have developed with time. These business remain updated with the current modifications and guarantee that your filings abide by the most present guidelines. If the IRS requests extra details or conducts an audit associated to your ERC claim, they can also offer ongoing assistance.
It’s important to research study and veterinarian any company providing ERC filing support to guarantee their trustworthiness and proficiency. Search for recognized companies with experience in tax and payroll services, or think about reaching out to relied on accounting firms or tax experts who offer ERC submitting assistance.
Bear in mind that while these business can provide valuable support, it’s constantly a great concept to have a fundamental understanding of the ERC requirements and process yourself. This will help you make informed choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief measures. The objective of the ERC is to motivate businesses to maintain and pay their employees during the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, consisting of for-profit businesses, tax-exempt organizations, and particular governmental entities. To certify, employers need to satisfy one of two criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross receipts. As mentioned earlier, for 2021, a substantial decline is defined as a 20% decrease in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices 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 (as much as 70%) of certified incomes paid to workers, including specific health insurance expenditures. The maximum credit per worker is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, services that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables organizations to claim the ERC even if they received a PPP loan. Nevertheless, the very same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, allowing qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for businesses to modify prior-year tax returns and receive refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their employment tax returns, generally Kind 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 provisions and eligibility requirements have actually progressed with time. The very best course of action is to consult with a tax expert or go to the official internal revenue service website for the most updated and comprehensive details relating to the ERC, including any current legal modifications or updates.
To qualify for the ERC, a company must fulfill one of the following requirements:.
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 substantial decrease is specified as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross invoices compared to the instantly preceding quarter.
The ERC is offered to organizations of all sizes, consisting of tax-exempt companies, but there are some exceptions. For example, government entities and services that received a PPP loan might have constraints on claiming the credit.
The process for declaring the ERC involves completing the needed types and consisting of the credit on your work tax return (generally Type 941). The exact time it requires to process the credit can differ based upon numerous aspects, consisting of the complexity of your business and the work of the IRS. It’s suggested to talk to a tax professional for assistance specific to your situation.
There are several companies that can aid with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll service providers. Some widely known business that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research study and call these business directly to inquire about their services and fees.
Please keep in mind that the details provided here is based on basic understanding and may not show the most recent updates or modifications to the ERC. It is essential to talk to a tax expert or check out the main internal revenue service site for the most accurate and up-to-date details relating to eligibility, declaring treatments, and offered help.
Less than 100. If the employer had 100 or less workers usually in 2019, then the credit is based.
on salaries paid to all staff members whether they in fact worked or not. Simply put, even if the.
workers worked full time and got paid for full-time work, the employer still gets the credit.
Greater than 100. If the employer had more than 100 staff members typically in 2019, then the credit is.
permitted only for salaries paid to workers who did not work throughout the calendar quarter.
In both cases, “incomes” includes not simply cash payments however also a part of the cost of company.
supplied healthcare. Supply Chain Employee Retention Credit
Employers can be immediately reimbursed for the credit by decreasing the quantity of payroll taxes they.