Lets talk first about Webinar On Employee Retention Credit :
Our group here what do these guys doing everyone in this space is assisting teach individuals about ERC and uh always provide a lovely breakfast and have individuals truly discover the program we need to head to the space where we have the ability to display some of the checks that we are getting for business and I wish to see that what is this this is uh numerous countless dollars actually Kevin hundreds of countless dollars so these are replicate copies of the letters that go to customers confirming that the check is on the way I indicate you know if you just start to take a look at a few of these here I indicate this one’s 8 million this one is 1.1 million 1.7 million 1.4 million I indicate it’s just I indicate consider the number of actual 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’re able to track it you know when you
get this you know the check is chosen sure and that’s when they pay so they don’t pay anything until they actually receive the money they do not pay bottom line Wonder trust anything until this letter is validated the check is on the way they deposit it into their checking account and they can genuinely trust Wonder trust that the process has actually been finished and how many you think you have actually processed considering that you began 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 need you require specialists 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 Terrific here you’re at my YouTube channel we’re speaking about something truly essential today the worker retention credit which the majority of you have never ever heard of I definitely had not become aware of it till very just recently and discovered a lot about it due to the fact that this is most likely the most affordable cost of capital for any small company anywhere
anytime if you have workers in between 5 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 Ideas they’re the largest processor of these ERC credits this is a 170 page program so it’s not easy this isn’t like PPP we simply phone your bank supervisor and state offer me a loan it does not 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 love this program it’s disappearing 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 start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered companies three 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 distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.
correct the cash cash payroll tax refund fine go on sorry I just need to make certain we got that point I imply that’s a huge difference a loan versus money cash I like money money 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 stunning difficult check in the mail where you get actual cash from the IRS all right so let’s talk 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 an employee so I’m going to make the Presumption this money is not for the owner not for individuals on the cap table not for investors it’s for staff members right you had to have owned a service however it’s based upon you having W-2 employees 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 qualified so you need to be on payroll in 2020 on the W-2 and you need to be on payroll for the first 6 months of 2021 on the W-2 proper so there were 6 quarters the program was open well stroll us through the six quarters so you had quarters two 3 and four of 2020 and you had quarters one 2 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 money how much can you get back per employee that was on a W-2 in those six quarters so the calculation in 2020 to be exact Kevin is 50 of the employee’s wage to a maximum of 5 thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the worker’s wage to an optimum of 7 thousand per quarter how did that happen um they simply 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 staff members on payroll 100 so if you can get 5 000 per person Max in twenty that was 50 in 2020 as much as 5 thousand Max and then what happens 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 since that’s a great deal of cash it is now there’s a caution here the PPP money would need to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan two you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP cash somewhere around ten 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 staff members and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s big undoubtedly now the huge concern is why does nobody understand about this because appearance when I first became aware of this when I first satisfied Josh you understand I’ve got great deals of investments in great deals of business I’m a significant supporter for entrepreneurship in America and make many lots of financial investments in business owners of which lots of suffered through the pandemic when I first became aware of this I called BS I do not think it because I utilize the PPP we went through the money center Banks to get it it was really 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 survive during the pandemic so when I found out about this I stated nah it can’t hold true but when I dug around I even contacted us to my political leader pals Guv Senators they didn’t learn about it I indicate that’s how you understand that’s how misinformation 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 also not real so let’s ask Josh why does no one understand about the employee retention credit you understand what’s intriguing you’re speaking about the banks Kevin since 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 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 chaos because remember in the original cares act you could refrain from doing both programs so if you had done PPP you might not do ERC in the initial program and when they changed the law in 2021 the banks were not 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 actually she or he’s never ever done it in the past 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 business your accountant no your accountant’s never done this before unless you have an account that went into this service and bottom line my company Kevin has stayed in business given that 2009 and we’ve been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 business so a great deal of our big huge corporate clients have actually dealt with bottom line to recover other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to motivate.
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
employer whose organization is totally or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
1. The credit is available to all companies despite size consisting of tax exempt companies. There are.
just 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
businesses who take Small company Loans.
2. To certify, the company has to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company 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 comparable quarter in 2019. As soon as the.
employer’s gross receipts go above 80% of a similar quarter in 2019 they no longer certify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The definition of qualifying wages varies by whether a company had, on average, more or less than.
100 employees in 2019.
Companies that specialize in ERC filing support generally provide competence and assistance to help companies navigate the intricate procedure of claiming the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Webinar On Employee Retention Credit
Eligibility Evaluation: These business will evaluate your organization’s eligibility for the ERC based on factors such as your industry, income, and operations. If you satisfy the requirements for the credit and determine the maximum credit amount you can claim, they can help figure out.
Paperwork and Estimation: ERC filing services will help in collecting the essential paperwork, such as payroll records and financial declarations, to support your claim. They will also help compute the credit amount based on eligible salaries and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for previous quarters, these companies can review your previous payroll records and financials to determine potential chances for retroactive credits. They can help you amend prior income tax return to claim these refunds.
Filing Support: Companies concentrating on ERC filings will prepare and submit the essential forms and documentation on your behalf. This includes completing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and guidance have developed in time. These companies stay upgraded with the current changes and guarantee that your filings comply with the most current guidelines. They can likewise supply continuous support if the internal revenue service requests extra info or performs an audit related to your ERC claim.
It is essential to research and veterinarian any company offering ERC filing support to guarantee their credibility and proficiency. Look for recognized firms with experience in tax and payroll services, or consider connecting to trusted accounting companies or tax specialists who provide ERC submitting support.
Bear in mind that while these companies can supply valuable help, it’s always an excellent concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure accurate filings.
The Staff Member 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 companies to maintain and pay their staff members throughout the pandemic, even if their operations have been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is offered to eligible companies, consisting of for-profit services, tax-exempt organizations, and particular governmental entities. To certify, employers should satisfy one of two requirements:.
Business operations were fully or partly suspended due to a federal government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As discussed earlier, for 2021, a substantial decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decrease in gross invoices 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 amounts to a portion (approximately 70%) of qualified wages paid to employees, consisting of particular health plan costs. The optimum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, organizations that got an Income Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 enables companies to declare the ERC even if they got a PPP loan. The exact same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, allowing qualified companies to declare the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides a chance for services to change prior-year tax returns and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their employment tax returns, normally Form 941. The excess can be refunded to the company if the credit goes beyond the quantity of work taxes owed.
It is necessary to note that the ERC provisions and eligibility requirements have evolved gradually. The very best strategy is to speak with a tax expert or visit the main IRS site for the most updated and detailed information regarding the ERC, including any recent legislative modifications or updates.
To get approved for the ERC, a business needs to fulfill one of the following requirements:.
The business operations were completely or partially suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross receipts. For 2021, a significant decline is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decrease is specified as a 20% decline in gross invoices compared to the same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to services of all sizes, consisting of tax-exempt organizations, but there are some exceptions. Federal government entities and organizations that received a PPP loan may have limitations on declaring the credit.
The procedure for declaring the ERC involves completing the necessary forms and consisting of the credit on your work income tax return (normally Form 941). The exact time it takes to process the credit can vary based upon several factors, including the intricacy of your service and the work of the internal revenue service. It’s suggested to consult with a tax expert for assistance specific to your scenario.
There are numerous business that can assist with the process of declaring the ERC. Some well-known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.
Please note that the information offered here is based on basic knowledge and might not show the most current updates or changes to the ERC. It’s important to talk to a tax professional or visit the main internal revenue service website for the most current and accurate info concerning eligibility, claiming treatments, and offered assistance.
Less than 100. If the employer had 100 or fewer employees typically in 2019, then the credit is based.
on incomes paid to all workers whether they in fact worked or not. In other words, even if the.
staff members worked full-time and earned money for full time work, the company still gets the credit.
Greater than 100. The credit is if the employer had more than 100 staff members on average in 2019.
allowed only for wages paid to staff members who did not work throughout the calendar quarter.
In both cases, “salaries” consists of not simply cash payments however likewise a portion of the cost of employer.
supplied healthcare. Webinar On Employee Retention Credit
Companies can be immediately compensated for the credit by decreasing the quantity of payroll taxes they.