Lets talk first about Employee Retention Credit In New Stimulus Bill :
Our team here what do these men doing everyone in this space is assisting teach people about ERC and uh always supply a lovely breakfast and have people really learn more about the program we should head to the space where we have the ability to show some of the checks that we are getting for business and I wish to see that what is this this is uh numerous millions of dollars actually Kevin hundreds of millions of dollars so these are duplicate copies of the letters that go to customers verifying that the check is on the way I suggest you understand if you just start to 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 mean it’s just I imply consider the number of real customers that went through the program yeah this is the very end this is the celebration at the end when the check is validated the numbers are verified and the check is on the mail in the mail from the IRS heading to the client so that’s how you have the ability to track it you know when you
receive this you understand the check is gone for sure which’s when they pay so they don’t pay anything up until they actually receive the money they don’t pay bottom line Wonder trust anything up until this letter is validated the check is on the way they transfer it into their savings account and they can really rely on Wonder trust that the procedure has actually been ended up and the number of you believe you’ve processed because you started this we’re about 35 000 of these for
about 6 billion dollars wow so plainly they know what they’re doing which’s what you require 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 Fantastic here you’re at my YouTube channel we’re talking about something really important today the worker retention credit which most of you have never heard of I certainly hadn’t heard of it till really recently and discovered 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 employees 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 Concepts 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 contact your bank supervisor and say offer me a loan it does not 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s disappearing very soon you got to find out all about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered services 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly 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.
fix the cash cash payroll tax refund okay go on sorry I just have to make sure we got that point I indicate that’s a big distinction a loan versus cash money I like money cash that’s what we’re discussing fine 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 beautiful 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 seems like to me if it’s a if it’s worker retention credit that individual needed 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 staff members right you had to have actually owned an organization but it’s based on 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 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 six quarters the program was open well walk us through the 6 quarters so you had quarters 2 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 have to be on the W-2 throughout that period now let’s talk my favorite part cash just how much can you get back per worker that was on a W-2 in those 6 quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s wage to an optimum of 5 thousand dollars per employee for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that take place um they just changed the rules in.
2021 versus due to the fact that the turmoil 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 after that what happens 21 000 Max in 2021 oh that’s how you create twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a lot of money it is now there’s a caution here the PPP money would need to be lowered from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would lower the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around 10 thousand dollars an individual so let’s state 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 certainly now the huge question is why does nobody understand about this since look when I first became aware of this when I first satisfied Josh you understand I have actually got lots of investments in great deals of companies I’m a major supporter for entrepreneurship in America and make many lots of investments in entrepreneurs of which many suffered through the pandemic when I initially became aware of this I called BS I don’t think it since 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 been worthy of and we used them wisely to stay alive throughout the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even contacted us to my political leader buddies Guv Senators they didn’t know about it I mean that’s how you know that’s how misinformation is that there’s no details out there then a bunch of individuals told me well you can’t get it since you took the PPP likewise not true so let’s ask Josh why does no one know about the staff member retention credit you understand what’s interesting you’re speaking about the banks Kevin due to the fact that in the PPP loan process 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 huge banks in our country and they would process procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s just procedure procedure that’s all um and here there was turmoil since remember in the initial cares act you might not do both programs so if you had actually done PPP you could refrain from doing ERC in the initial program and when they altered 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 done it previously do the banks do it nope the banks don’t 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 ever done this prior to unless you have an account that entered into this organization and bottom line my company Kevin has actually been in business considering that 2009 and we’ve been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 business so a great deal of our huge huge corporate customers have actually worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work chance tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
employers to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
company whose business is fully or partially suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
1. The credit is available to all companies no matter size including tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
organizations who take Small company Loans.
2. To qualify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the employer’s service is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. Once the.
company’s gross invoices go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying wages paid up to $10,000 in overall.
It is effective for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes varies by whether a company had, usually, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing help normally provide knowledge and support to assist services browse the complex procedure of declaring the credit. They can use different services, including:.
How is the employee retention credit calculated? Employee Retention Credit In New Stimulus Bill
Eligibility Assessment: These business will evaluate your service’s eligibility for the ERC based on elements such as your industry, earnings, and operations. They can assist identify if you satisfy the requirements for the credit and determine the optimum credit amount you can claim.
Documents and Computation: ERC filing services will assist in collecting the needed paperwork, such as payroll records and monetary statements, to support your claim. They will also assist compute the credit quantity based on eligible wages and other qualifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can examine your past payroll records and financials to recognize prospective opportunities for retroactive credits. They can help you change prior tax returns to declare these refunds.
Filing Assistance: Business focusing on ERC filings will prepare and send the necessary forms and documentation in your place. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC regulations and guidance have actually developed over time. These business stay upgraded with the latest modifications and ensure that your filings adhere to the most existing guidelines. If the Internal revenue service demands additional details or performs an audit associated to your ERC claim, they can likewise offer continuous support.
It’s important to research study and veterinarian any business using ERC filing help to guarantee their credibility and expertise. Try to find recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who use ERC filing support.
Keep in mind that while these companies can provide valuable support, it’s constantly a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit introduced by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to motivate organizations to keep and pay their staff members during the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible employers, consisting of for-profit companies, tax-exempt companies, and certain governmental entities. To qualify, companies should meet one of two requirements:.
The business operations were completely or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross receipts. As pointed out earlier, for 2021, a substantial decrease is defined as a 20% decrease 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 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 percentage (up to 70%) of certified incomes paid to employees, consisting of certain health plan expenses. The optimum 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 received a Paycheck Defense Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 permits businesses to claim the ERC even if they received a PPP loan. Nevertheless, the exact same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and improved, enabling qualified employers to declare the credit for qualified earnings paid as far back as March 13, 2020. This retroactive provision offers a chance for companies to amend prior-year tax returns and receive refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work tax returns, normally Form 941. The excess can be reimbursed to the company if the credit goes beyond the amount of work taxes owed.
It is essential to note that the ERC provisions and eligibility requirements have developed in time. The very best course of action is to speak with a tax professional or check out the main internal revenue service website for the most updated and comprehensive info relating to the ERC, consisting of any recent legislative modifications or updates.
To receive the ERC, a company needs to satisfy one of the following criteria:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. For 2021, a considerable decline is defined as a 20% decline in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a considerable decrease is defined as a 20% decrease in gross invoices compared to the same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt organizations, however there are some exceptions. Government entities and companies that received a PPP loan may have constraints on claiming the credit.
The procedure for claiming the ERC involves finishing the required forms and consisting of the credit on your work tax return (typically Kind 941). The exact time it requires to process the credit can differ based upon a number of factors, including the intricacy of your company and the work of the IRS. It’s suggested to talk to a tax professional for assistance specific to your circumstance.
There are a number of business that can assist with the process of claiming the ERC. Some widely known companies that use help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please keep in mind that the information supplied here is based on general understanding and may not reflect the most current updates or modifications to the ERC. It’s important to consult with a tax professional or visit the main internal revenue service website for the most accurate and updated details regarding eligibility, claiming treatments, and offered support.
Less than 100. If the employer had 100 or fewer staff members usually in 2019, then the credit is based.
on earnings paid to all employees whether they really worked or not. In other words, even if the.
employees worked full time and earned money 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 employees who did not work during the calendar quarter.
In both cases, “earnings” includes not simply cash payments but also a part of the expense of employer.
supplied healthcare. Employee Retention Credit In New Stimulus Bill
Employers can be right away reimbursed for the credit by lowering the amount of payroll taxes they.