Lets talk first about Where To Mail 941 X For Employee Retention Credit :
Our team here what do these guys doing everybody in this space is helping teach people about ERC and uh always offer a beautiful breakfast and have people truly learn about the program we should head to the room where we have the ability to display a few 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 actually Kevin numerous countless dollars so these are duplicate copies of the letters that go to clients verifying that the check is on the way I suggest you understand if you just begin to take a look at a few 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 verified the numbers are verified 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 chosen sure which’s when they pay so they don’t pay anything until they in fact get the cash they don’t pay bottom line Wonder trust anything till this letter is confirmed the check is on the method they transfer it into their checking account and they can truly rely on Wonder trust that the process has actually been finished and the number of you think you’ve processed because you began this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing and that’s what you need you require 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 talking about something really important today the employee retention credit which most of you have actually never ever heard of I certainly had not heard of it till very recently and learned a lot about it because this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have employees between 5 and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 all of us 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 discover all about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act provided organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everybody it makes a big distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
fix the money cash payroll tax refund alright go on sorry I simply need to make certain we got that point I imply that’s a huge difference a loan versus cash money I like cash cash that’s what we’re discussing 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 tough check in the mail where you get real money from the IRS all right so let’s talk about how it works due to the fact that it sounds like to me if it’s a if it’s staff member retention credit that person had to be an employee so I’m going to make the Assumption this cash is not for the owner not for people on the cap table not for investors it’s for employees right you needed to have owned a business 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 need to be on payroll in 2020 on the W-2 and you need to be on payroll for the very first 6 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 three and 4 of 2020 and you had quarters one two and three of 2021. alright 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 just how much can you return per staff member that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the staff member’s income 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 salary to an optimum of 7 thousand per quarter how did that happen um they just altered the rules in.
2021 versus since the chaos of the pandemic so they wished 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 then what occurs 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 great deal of money it is now there’s a caveat here the PPP money would need to be reduced 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 on average Kevin is if you took PPP money somewhere around ten 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 cash you would still get a million dollar in the mail from the IRS so it’s substantial clearly now the big question is why does no one understand about this because look when I first became aware of this when I initially satisfied Josh you know I’ve got lots of investments in lots of companies I’m a major supporter for entrepreneurship in America and make lots of lots of investments in business owners of which lots of suffered through the pandemic when I first heard about this I called BS I don’t think it due to the fact that I utilize the PPP we went through the money center Banks to get it it was extremely easy to do we had our CEOs call the banks they got their loans and that were well should have and we utilized them carefully to stay alive throughout the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even called to my political leader friends Governor 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 bunch of individuals told me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one know about the staff member retention credit you know what’s intriguing you’re speaking about the banks Kevin due to the fact that in the PPP loan procedure the federal government made it very 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 simply process process that’s all um and here there was chaos because remember in the original cares act you might not do both programs so if you had done PPP you might not do ERC in the original program and when they changed the law in 2021 the banks were refraining from doing ERC since it’s not alone so you’re getting a tax refund so the government never made it clear to anybody about how to.
do this does your CFO know how to do this not truly he or she’s never done it in the past do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that went into this business and bottom line my company Kevin has actually been in business given that 2009 and we have actually been working with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big huge business customers have actually worked with bottom line to recuperate other government programs we have actually done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit designed to encourage.
companies to keep employees on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose service is fully or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
1. The credit is available to all companies despite size including tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small Business Loans.
2. To qualify, the company has to meet one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross receipts are listed below 50% of the similar 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 amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of certifying salaries differs by whether an employer had, typically, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing support generally offer proficiency and assistance to help services navigate the complex procedure of claiming the credit. They can use numerous services, consisting of:.
How is the employee retention credit calculated? Where To Mail 941 X For Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your business’s eligibility for the ERC based on aspects such as your industry, income, and operations. If you fulfill the requirements for the credit and determine the optimum credit quantity you can claim, they can assist determine.
Paperwork and Computation: ERC filing services will help in gathering the needed documentation, such as payroll records and financial declarations, to support your claim. They will also help determine the credit quantity based upon eligible earnings and other certifying expenditures.
Retroactive Claim Review: If you are eligible to declare the ERC for previous quarters, these business can examine your previous payroll records and financials to identify possible chances for retroactive credits. They can assist you modify prior tax returns to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and submit the necessary forms and documentation in your place. This includes finishing Kind 941 or any other required tax forms.
Compliance and Updates: ERC policies and assistance have actually evolved with time. These companies stay updated with the latest changes and ensure that your filings abide by the most present standards. They can likewise supply ongoing support if the internal revenue service requests extra information or conducts an audit related to your ERC claim.
It is essential to research and veterinarian any business providing ERC filing assistance to ensure their trustworthiness and know-how. Look for established firms with experience in tax and payroll services, or think about connecting to relied on accounting firms or tax professionals who use ERC submitting assistance.
Keep in mind that while these business can provide valuable support, it’s always a great idea to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make notified decisions and ensure accurate filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief measures. The objective of the ERC is to encourage services to keep 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 available to eligible companies, consisting of for-profit services, tax-exempt organizations, and specific governmental entities. To certify, companies need to meet one of two criteria:.
Business operations were totally or partially suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. As mentioned earlier, for 2021, a considerable decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices 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 amount is equal to a percentage (as much as 70%) of qualified salaries paid to workers, consisting of particular health insurance expenditures. 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: At first, services that got a Paycheck Defense Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables organizations to declare the ERC even if they received a PPP loan. The same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and improved, permitting qualified companies to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for services to modify prior-year tax returns and get refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work income tax return, typically Form 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be refunded to the company.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have actually progressed with time. The very best course of action is to consult with a tax expert or visit the main IRS website for the most updated and comprehensive information relating to the ERC, consisting of any recent legal changes or updates.
To receive the ERC, a business should satisfy among the following requirements:.
The business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decline in gross invoices. For 2021, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. For instance, federal government entities and companies that got a PPP loan may have limitations on declaring the credit.
The process for declaring the ERC includes finishing the needed types and consisting of the credit on your work tax return (usually Kind 941). The exact time it requires to process the credit can differ based upon a number of elements, consisting of the intricacy of your service and the work of the IRS. It’s suggested to consult with a tax expert for assistance specific to your circumstance.
There are several companies that can help with the procedure of claiming the ERC. These include accounting companies, tax advisory services, and payroll provider. Some popular business that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s recommended to research and get in touch with these companies directly to inquire about their costs and services.
Please note that the details provided here is based on basic understanding and may not show the most current updates or changes to the ERC. It is very important to talk to a tax professional or check out the official internal revenue service website for the most precise and updated details regarding eligibility, declaring procedures, and available assistance.
Less than 100. The credit is based if the employer had 100 or fewer workers on average in 2019.
on wages paid to all workers whether they really worked or not. Simply put, even if the.
staff members worked full time and made money for full-time work, the company still gets the credit.
Greater than 100. The credit is if the company had more than 100 workers on average in 2019.
permitted just for salaries paid to employees who did not work during the calendar quarter.
In both cases, “earnings” consists of not just money payments but likewise a portion of the cost of employer.
offered health care. Where To Mail 941 X For Employee Retention Credit
Employers can be right away compensated for the credit by lowering the quantity of payroll taxes they.