Lets talk first about how to apply for employee retention credit in Valdosta for Glass and Glass Product Manufacturing …
Anytime if you have workers between 5 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 difficult this isn’t like PPP we just call your bank supervisor 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 representative for this I like 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 just start there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act offered organizations 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 big difference 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 all right go on sorry I just need to make sure we got that point I imply that’s a huge difference a loan versus money money I like money money that’s what we’re talking about 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 gorgeous hard check in the mail where you get actual money from the IRS all right so let’s discuss how it works because it seems like to me if it’s a if it’s staff member retention credit that person had to be a worker so I’m going to make the Presumption this money is not for the owner not for people on the cap table not for investors it’s for staff members right you needed to have actually owned a company however it’s based upon 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 need 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 appropriate so there were six quarters the program was open well stroll us through the six quarters so you had quarters two 3 and 4 of 2020 and you had quarters one two and 3 of 2021. okay 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 how much can you get back per employee that was on a W-2 in those six quarters so the computation in 2020 to be precise Kevin is 50 of the staff member’s salary to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s wage to a maximum of 7 thousand per quarter how did that occur um they just changed the rules in.
2021 versus due to the fact that the mayhem 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 up to 5 thousand Max and after that what occurs 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus five 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 reduced from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would lower the 26 000 so what we’re seeing usually 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 employees and you took PPP money you would still get a million dollar in the mail from the IRS so it’s big obviously now the huge concern is why does no one learn about this because look when I first became aware of this when I initially fulfilled Josh you understand I’ve got great deals of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make lots of many financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I don’t think it due to the fact that I use 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 which were well been worthy of and we used them sensibly to survive throughout the pandemic so when I found out about this I said nah it can’t hold true however when I dug around I even contacted us to my political leader good friends Governor Senators they didn’t know about it I imply that’s how you understand that’s how false information is that there’s no information out there then a bunch of individuals told me well you can’t get it because you took the PPP likewise not real so let’s ask Josh why does no one understand about the worker retention credit you understand what’s interesting you’re discussing the banks Kevin due to the fact that in the PPP loan procedure 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 procedure procedure that’s all um and here there was turmoil because remember in the initial cares act you could not do both programs so if you had actually done PPP you could not do ERC in the original program and when they changed the law in 2021 the banks were not doing ERC due to the fact that it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.
do this does your CFO understand how to do this not really he or she’s never ever done it previously 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 business your accounting professional no your accountant’s never ever done this before unless you have an account that went into this service and bottom line my firm Kevin has stayed in business because 2009 and we’ve been working with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our huge big business customers have worked with bottom line to recuperate other government programs we’ve done sales tax and use tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home property tax all of these other federal government programs.
The staff member retention tax credit is a broad based refundable tax credit developed to encourage.
Are you Eligible for Valdosta Glass and Glass Product Manufacturing ERC Find out now
employers to keep workers on their payroll. The credit is 50% of as much as $10,000 in wages paid by an.
Because of COVID-19 or whose gross receipts, company whose company is totally or partially suspended.
decrease by more than 50%.
1. The credit is offered to all companies despite size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To qualify, the company needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is totally or partly 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 equivalent quarter in 2019. When the.
employer’s gross receipts go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Calculation of the Credit.
The quantity of the credit is 50% of the qualifying earnings paid up to $10,000 in overall.
It works for earnings paid after March 13th and prior to December 31, 2020.
The definition of qualifying incomes varies by whether an employer had, typically, basically than.
100 workers in 2019.
Business that focus on ERC filing assistance usually supply competence and support to assist services browse the complicated procedure of claiming the credit. They can use various services, including:.
How is the employee retention credit calculated? Do Owner Wages Qualify For Employee Retention Credit
Eligibility Evaluation: These companies will evaluate your service’s eligibility for the ERC based on elements such as your market, earnings, and operations. If you meet the requirements for the credit and recognize the optimum credit quantity you can claim, they can assist identify.
Documents and Computation: ERC filing services will assist in gathering the required documentation, such as payroll records and monetary statements, to support your claim. They will also assist determine the credit amount based upon eligible wages and other certifying expenditures.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can evaluate your previous payroll records and financials to recognize possible chances for retroactive credits. They can help you amend prior tax returns to claim these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the necessary kinds and paperwork on your behalf. This consists of completing Form 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have evolved in time. These companies stay updated with the current changes and make sure that your filings adhere to the most existing standards. If the Internal revenue service requests extra info or performs an audit associated to your ERC claim, they can also provide ongoing assistance.
It is very important to research study and vet any company using ERC filing support to ensure their trustworthiness and know-how. Look for recognized firms with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who provide ERC filing support.
Keep in mind that while these business can provide important assistance, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and process yourself. This will help you make notified decisions and make sure precise filings.
The Worker Retention Credit (ERC) is a refundable tax credit introduced by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate businesses to maintain and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified companies, consisting of for-profit businesses, tax-exempt organizations, and particular governmental entities. To qualify, companies must meet one of two requirements:.
Business operations were fully or partially suspended due to a government order related to COVID-19.
The business experienced a significant decline in gross invoices. As discussed earlier, for 2021, a considerable 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% decrease in gross invoices compared to the exact same quarter in 2019, or a 20% decrease in gross receipts compared to the immediately preceding quarter.
Credit Amount: The ERC is a refundable tax credit that offsets the employer’s share of Social Security taxes. The credit amount amounts to a portion (as much as 70%) of qualified incomes paid to employees, including specific health plan costs. 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, organizations that received a Paycheck Security Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows organizations to claim the ERC even if they got a PPP loan. The very same salaries can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and enhanced, enabling qualified employers to claim the credit for qualified wages paid as far back as March 13, 2020. This retroactive arrangement provides a chance for organizations to change prior-year income tax return and get refunds.
Claiming the Credit: Companies can claim the ERC by reporting it on their work income tax return, normally Form 941. If the credit goes beyond the amount of employment taxes owed, the excess can be reimbursed to the company.
It is necessary to keep in mind that the ERC arrangements and eligibility requirements have actually developed over time. The very best strategy is to consult with a tax professional or go to the official IRS website for the most detailed and updated info relating to the ERC, consisting of any recent legal modifications or updates.
To receive the ERC, a business must meet among the following criteria:.
Business operations were completely or partly suspended due to a federal government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a considerable decline is specified as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the right away preceding quarter.
The ERC is readily available to companies of all sizes, including tax-exempt companies, but there are some exceptions. Government entities and organizations that received a PPP loan might have constraints on declaring the credit.
The procedure for declaring the ERC involves completing the necessary kinds and including the credit on your employment income tax return (typically Form 941). The exact time it requires to process the credit can vary based upon several aspects, consisting of the intricacy of your organization and the work of the IRS. It’s suggested to talk to a tax professional for guidance particular to your circumstance.
There are several business that can assist with the procedure of claiming the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some popular companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and get in touch with these companies directly to inquire about their costs and services.