Lets talk first about Us Department Of Treasury Employee Retention Credit :
Our group here what do these guys doing everybody in this room is assisting teach individuals about ERC and uh constantly provide a lovely breakfast and have people really learn about the program we ought to head to the room where we have the ability to show some of the checks that we are getting for companies and I want to see that what is this this is uh hundreds of millions of dollars actually Kevin hundreds of countless dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I mean you understand if you simply start to take a look at a few of these here I suggest 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 how many real clients that went through the program yeah this is the very end this is the party at the end when the check is validated the numbers are validated and the check is on the mail in the mail from the IRS heading to the customer 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 don’t pay anything until they in fact receive the cash 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 savings account and they can truly rely on Wonder trust that the process has actually been ended up and the number of you believe you have actually processed because you started this we have to do with 35 000 of these for
about six billion dollars wow so plainly they understand what they’re doing and that’s what you need 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 Wonderful here you’re at my YouTube channel we’re speaking about something actually crucial today the staff member retention credit which most of you have actually never ever heard of I definitely had not become aware of it till very just recently and found out 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 workers in between five and five hundred so I have actually got the professional with me this is Josh Fox he’s the founder and CEO of bottom line Principles they’re the biggest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply call 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 us all 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 going away 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 throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used organizations 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 difference right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the cash money payroll tax refund okay go on sorry I just have to ensure we got that point I imply that’s a huge difference a loan versus money cash 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 initial cares Act is the ERC and yes Kevin it is a lovely difficult check in the mail where you get real money from the internal revenue service all right so let’s talk about how it works due to the fact that it seems like to me if it’s a if it’s worker retention credit that individual had 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 investors it’s for workers right you needed to have owned a company but it’s based on you having W-2 staff members in America not 10.99. 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 six months of 2021 on the W-2 right so there were 6 quarters the program was open well walk us through the 6 quarters so you had quarters two 3 and four of 2020 and you had quarters one two and 3 of 2021. all right so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my favorite part money how much can you return per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s wage to an optimum of 7 thousand per quarter how did that take place um they just altered the rules in.
2021 versus because the turmoil of the pandemic so they wanted to even get more to keep those workers 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 then what occurs 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 since that’s a lot of cash 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 reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a dining establishment in New York City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s substantial undoubtedly now the huge question is why does nobody learn about this due to the fact that look when I initially heard about this when I initially satisfied Josh you know I’ve got lots of investments in great deals of companies I’m a significant advocate for entrepreneurship in America and make numerous many investments in entrepreneurs of which many suffered through the pandemic when I initially found out about this I called BS I do not think it due to the fact that 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 which were well been worthy of and we used them wisely to stay alive throughout the pandemic so when I found out about this I said nah it can’t be true but when I dug around I even contacted us to my political leader buddies Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how false information is that there’s no info out there then a lot of people told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does nobody understand about the staff member retention credit you know what’s intriguing you’re discussing the banks Kevin due to the fact that 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 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 due to the fact that keep in mind 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 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 understand how to do this not really he or she’s never 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 accounting professional no your accounting professional’s never ever done this before unless you have an account that entered into this company and bottom line my firm Kevin has stayed in business since 2009 and we’ve been dealing with the federal government and the state government to recuperate cash for Fortune 500 Fortune 1000 business so a lot of our big big business customers have actually dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax joblessness tax work opportunity 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 developed to encourage.
employers to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Because of COVID-19 or whose gross invoices, company whose service is completely or partially suspended.
decline by more than 50%.
1. The credit is readily available to all employers no matter size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is totally or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer certify.
after the end of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the qualifying earnings paid up to $10,000 in total.
It works for earnings paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether an employer had, usually, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing help generally supply expertise and assistance to help companies navigate the complicated procedure of declaring the credit. They can offer different services, including:.
How is the employee retention credit calculated? Us Department Of Treasury Employee Retention Credit
Eligibility Evaluation: These business will examine your company’s eligibility for the ERC based upon aspects such as your industry, profits, and operations. They can help identify if you satisfy the requirements for the credit and identify the maximum credit amount you can declare.
Paperwork and Computation: ERC filing services will assist in collecting the necessary documents, such as payroll records and financial statements, to support your claim. They will also assist calculate the credit amount based upon eligible earnings and other certifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can review your past payroll records and financials to identify possible opportunities for retroactive credits. They can help you amend previous income tax return to declare these refunds.
Filing Assistance: Companies focusing on ERC filings will prepare and send the necessary kinds and documentation in your place. This includes completing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC policies and guidance have developed over time. These companies stay updated with the latest modifications and ensure that your filings comply with the most present standards. They can likewise offer ongoing support if the internal revenue service demands additional details or conducts an audit related to your ERC claim.
It’s important to research and veterinarian any company providing ERC filing support to ensure their trustworthiness and proficiency. Try to find established companies with experience in tax and payroll services, or think about connecting to trusted accounting firms or tax professionals who use ERC filing assistance.
Remember that while these companies can offer valuable assistance, it’s constantly a good idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and ensure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief procedures. The objective of the ERC is to encourage businesses to keep and pay their employees 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 qualified employers, consisting of for-profit businesses, tax-exempt companies, and particular governmental entities. To certify, companies should meet one of two criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As mentioned previously, for 2021, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decline in gross receipts 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 (approximately 70%) of certified salaries paid to employees, including particular health insurance expenditures. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, businesses that got an Income Security Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows services to claim the ERC even if they received a PPP loan. Nevertheless, the very same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and improved, enabling eligible employers to declare the credit for certified incomes paid as far back as March 13, 2020. This retroactive provision supplies a chance for organizations to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work income tax return, typically Form 941. The excess can be reimbursed to the company if the credit surpasses the amount of work taxes owed.
It is very important to note that the ERC provisions and eligibility requirements have developed in time. The best course of action is to seek advice from a tax expert or go to the official internal revenue service site for the most comprehensive and up-to-date details regarding the ERC, consisting of any recent legal modifications or updates.
To qualify for the ERC, a service needs to fulfill one of the following criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. For 2021, a significant decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decrease in gross receipts compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the instantly preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and businesses that got a PPP loan may have constraints on declaring the credit.
The process for claiming the ERC includes completing the necessary types and consisting of the credit on your work tax return (usually Type 941). The exact time it requires to process the credit can differ based on numerous factors, including the complexity of your business and the workload of the internal revenue service. It’s recommended to consult with a tax expert for assistance particular to your situation.
There are numerous companies that can assist with the process of claiming the ERC. Some widely known business that provide support with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information offered here is based upon basic knowledge and might not reflect the most recent updates or changes to the ERC. It is very important to seek advice from a tax professional or go to the main IRS website for the most updated and accurate information relating to eligibility, declaring treatments, and offered support.
Less than 100. The credit is based if the company had 100 or fewer employees on average in 2019.
on earnings paid to all staff members whether they actually 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. If the employer had more than 100 workers on average in 2019, then the credit is.
allowed just for incomes paid to staff members who did not work during the calendar quarter.
In both cases, “wages” consists of not simply cash payments but also a part of the expense of employer.
provided healthcare. Us Department Of Treasury Employee Retention Credit
Employers can be right away reimbursed for the credit by minimizing the amount of payroll taxes they.