Lets talk first about how to apply for employee retention credit in Bay Saint Louis for All Other Publishers …
Anytime if you have employees between five and five hundred so I have actually got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Ideas they’re the biggest processor of these ERC credits this is a 170 page program so it’s challenging this isn’t like PPP we just call up your bank manager and state provide 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’ve ended up being yes the Ambassador and paid representative for this I love this program it’s going away soon you got to discover all about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act used services three opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and almost 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.
remedy the cash money payroll tax refund all right go on sorry I just need to make certain we got that point I imply that’s a big difference a loan versus cash money I like cash money that’s what we’re speaking about okay 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 stunning difficult check in the mail where you get actual cash from the IRS all right so let’s discuss how it works since it sounds 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 shareholders it’s for workers right you had to have owned an organization however it’s based on you having W-2 workers in America not 10.99. so as long as you had W-2 staff members 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 first six months of 2021 on the W-2 right so there were six quarters the program was open well stroll 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. okay so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my favorite part cash 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 specific Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the employee’s income to an optimum of seven thousand per quarter how did that happen um they simply altered the rules in.
2021 versus because the chaos of the pandemic so they wanted 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 occurs 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 6 thousand dollars per employee that is because that’s a great deal of cash it is now there’s a caveat here the PPP money would need to be lowered 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 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 money you would still get a million dollar in the mail from the internal revenue service so it’s big obviously now the big concern is why does nobody learn about this since look when I first became aware of this when I initially met Josh you understand I have actually got great deals of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous lots of investments in business owners of which numerous suffered through the pandemic when I first became aware of this I called BS I do not think 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 deserved and we utilized them carefully to stay alive throughout the pandemic so when I found out about this I stated nah it can’t be true but when I dug around I even contacted us to my politician buddies Governor Senators they didn’t learn about it I suggest that’s how you understand that’s how misinformation is that there’s no info out there then a bunch of individuals informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody understand about the staff member retention credit you know what’s intriguing you’re speaking about the banks Kevin since in the PPP loan process the federal government made it really 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply procedure process that’s all um and here there was chaos due to the fact that keep in mind in the initial cares act you could refrain from doing both programs so if you had actually done PPP you could refrain from doing ERC in the original program and when they altered the law in 2021 the banks were not doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anybody about how to.
do this does your CFO know how to do this not truly she or he’s never ever done it before 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 accounting professional no your accounting professional’s never ever done this before unless you have an account that went into this company and bottom line my company Kevin has stayed in business considering that 2009 and we’ve been working with the federal government and the state government to recover cash for Fortune 500 Fortune 1000 companies so a lot of our big huge corporate customers have actually dealt with bottom line to recuperate other federal government programs we have actually done sales tax and use tax unemployment tax work chance tax credits research and development tax credits unclaimed property real estate tax all of these other government programs.
The employee retention tax credit is a broad based refundable tax credit created to encourage.
Are you Eligible for Bay Saint Louis All Other Publishers ERC Find out now
companies to keep employees on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
employer whose business is fully or partly suspended because of COVID-19 or whose gross invoices.
decrease by more than 50%.
Availability.
1. The credit is readily available to all employers despite size consisting of tax exempt organizations. There are.
only two exceptions: (1) state and city governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s company is totally or partially suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross receipts are below 50% of the comparable quarter in 2019. As soon as the.
company’s gross receipts exceed 80% of a similar 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 certifying earnings paid up to $10,000 in overall.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether an employer had, on average, more or less than.
100 staff members in 2019.
Business that specialize in ERC filing assistance generally supply expertise and assistance to assist businesses browse the complicated procedure of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? Employee Retention Credit Letter
Eligibility Evaluation: These business will assess your organization’s eligibility for the ERC based on aspects such as your industry, profits, and operations. If you meet the requirements for the credit and determine the optimum credit amount you can claim, they can assist figure out.
Documents and Calculation: ERC filing services will help in collecting the essential documentation, such as payroll records and financial statements, to support your claim. They will also help determine the credit quantity based on eligible earnings and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these business can review your past payroll records and financials to determine potential opportunities for retroactive credits. They can help you amend previous tax returns to claim these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and send the required kinds and documents in your place. This consists of completing Form 941 or any other required tax return.
Compliance and Updates: ERC regulations and guidance have actually evolved gradually. These companies stay upgraded with the current modifications and ensure that your filings abide by the most existing standards. If the IRS demands additional information or conducts an audit associated to your ERC claim, they can also offer ongoing assistance.
It is very important to research and veterinarian any business providing ERC filing assistance to guarantee their credibility and know-how. Search for established companies with experience in tax and payroll services, or think about reaching out to trusted accounting companies or tax professionals who use ERC filing support.
Remember that while these companies can offer important support, it’s always a great idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified choices and guarantee accurate filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief measures. The goal of the ERC is to motivate companies to retain and pay their staff members throughout the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is offered to eligible companies, including for-profit businesses, tax-exempt companies, and specific governmental entities. To qualify, employers must meet one of two criteria:.
The business operations were fully or partly suspended due to a government order related to COVID-19.
Business experienced a considerable decline in gross receipts. As mentioned previously, for 2021, a substantial decline is specified as a 20% decrease in gross receipts 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 exact same quarter in 2019, or a 20% decrease in gross receipts 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 quantity amounts to a percentage (approximately 70%) of certified salaries paid to staff members, including certain health insurance expenses. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that received an Income Protection Program (PPP) loan were not eligible for the ERC. However, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they received a PPP loan. Nevertheless, the very same incomes can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively broadened and boosted, permitting qualified companies to declare the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity 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, typically Form 941. If the credit exceeds the quantity of work taxes owed, the excess can be reimbursed to the employer.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have actually progressed with time. The best course of action is to speak with a tax expert or visit the official IRS website for the most current and detailed info concerning the ERC, consisting of any current legislative modifications or updates.
To receive the ERC, a service needs to meet one of the following requirements:.
Business operations were totally or partially suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a substantial decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the right away preceding quarter.
The ERC is available to companies of all sizes, including tax-exempt organizations, but there are some exceptions. For instance, federal government entities and businesses that got a PPP loan may have limitations on declaring the credit.
The procedure for claiming the ERC involves completing the necessary kinds and including the credit on your work tax return (usually Kind 941). The exact time it requires to process the credit can differ based on a number of elements, including the complexity of your organization and the work of the IRS. It’s recommended to consult with a tax professional for assistance particular to your scenario.
There are numerous companies that can assist with the procedure of declaring the ERC. Some popular companies that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.