Lets talk first about how to apply for employee retention credit in Yazoo City for Radio Networks …
Anytime if you have workers in between 5 and five hundred so I’ve got the specialist 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 not easy this isn’t like PPP we simply phone 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 inform us all about it and how to get it and why I’ve become yes the Ambassador and paid representative for this I like this program it’s going away soon you got to learn everything about it let’s talk worker 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 provided services three chances 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 exactly so the ERC is a refund that’s.
remedy the money cash payroll tax refund alright go on sorry I just need to ensure we got that point I suggest that’s a big difference a loan versus cash cash I like money cash that’s what we’re talking 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 initial cares Act is the ERC and yes Kevin it is a lovely tough check in the mail where you get actual cash 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 employee retention credit that individual needed to be a staff member so I’m going to make the Assumption this money is not for the owner not for individuals on the cap table not for investors it’s for workers right you needed to have owned a service but it’s based on you having W-2 staff members 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 need to be on payroll for the very first 6 months of 2021 on the W-2 proper so there were six quarters the program was open well walk 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. alright so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my favorite part money just how much can you return per worker that was on a W-2 in those 6 quarters so the calculation in 2020 to be specific Kevin is 50 of the worker’s salary to a maximum of five thousand dollars per employee for the year of 2020 and in 2021 the numbers increased to 70 of the worker’s salary to a maximum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus due to the fact that the chaos of the pandemic so they wanted to even get more to keep those workers 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 develop twenty six thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty six thousand dollars per staff member that is because that’s a lot of money 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 2 you would lower the 26 000 so what we’re seeing on average Kevin is if you took PPP money someplace around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city 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 no one know about this since appearance when I initially became aware of this when I first fulfilled Josh you know I have actually got lots of investments in lots of business I’m a significant advocate for entrepreneurship in America and make many many investments in entrepreneurs of which lots of 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 really easy to do we had our CEOs call the banks they got their loans which were well deserved and we used them carefully to survive throughout the pandemic so when I became aware of this I said nah it can’t hold true however when I dug around I even contacted us to my political leader friends Governor Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no info out there then a bunch of individuals informed me well you can’t get it because you took the PPP also not true so let’s ask Josh why does no one learn about the worker retention credit you know what’s interesting you’re talking about the banks Kevin since in the PPP loan procedure 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 huge 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 procedure that’s all um and here there was mayhem due to the fact that remember in the original cares act you might not do both programs so if you had done PPP you could refrain from doing ERC in the original 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 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 don’t do it the payroll companies yeah a few of them are doing it as a payroll business your accounting professional no your accountant’s never ever done this prior to unless you have an account that entered into this organization and bottom line my firm Kevin has stayed in business since 2009 and we have actually been dealing with the federal government and the state federal government to recover cash for Fortune 500 Fortune 1000 business so a lot of our big huge business customers have worked with bottom line to recover other federal government programs we have actually done sales tax and utilize tax unemployment tax work chance 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 motivate.
Are you Eligible for Yazoo City Radio Networks ERC Find out now
companies to keep workers on their payroll. The credit is 50% of as much as $10,000 in earnings paid by an.
employer whose organization is totally or partly suspended because of COVID-19 or whose gross receipts.
decrease by more than 50%.
1. The credit is readily available to all companies regardless of size including tax exempt companies. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the employer has to satisfy one of two alternative tests. The tests are computed each.
calendar quarter– Either.
o the company’s company is fully or partly suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the employer’s gross invoices are below 50% of the similar quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of an equivalent 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 total.
It works for wages paid after March 13th and prior to December 31, 2020.
The definition of qualifying earnings differs by whether an employer had, on average, basically than.
100 workers in 2019.
Business that focus on ERC filing help typically provide competence and support to assist organizations navigate the complicated procedure of claiming the credit. They can use various services, including:.
How is the employee retention credit calculated? Ppp Or Employee Retention Credit
Eligibility Assessment: These business will evaluate your company’s eligibility for the ERC based upon elements such as your market, earnings, and operations. If you meet the requirements for the credit and identify the optimum credit quantity you can claim, they can help determine.
Documents and Estimation: ERC filing services will assist in collecting the necessary documentation, such as payroll records and financial declarations, to support your claim. They will also assist calculate the credit quantity based upon eligible salaries and other certifying costs.
Retroactive Claim Review: If you are qualified to declare the ERC for prior quarters, these business can evaluate your past payroll records and financials to determine possible chances for retroactive credits. They can help you change previous income tax return to declare these refunds.
Filing Assistance: Business concentrating on ERC filings will prepare and submit the required forms and documentation on your behalf. This consists of finishing Form 941 or any other necessary tax forms.
Compliance and Updates: ERC policies and assistance have actually developed in time. These companies stay updated with the latest changes and ensure that your filings adhere to the most current guidelines. They can likewise provide continuous support if the internal revenue service requests additional information or performs an audit related to your ERC claim.
It is necessary to research study and vet any company offering ERC filing help to guarantee their reliability and expertise. Try to find recognized firms with experience in tax and payroll services, or think about connecting to relied on accounting companies or tax professionals who provide ERC filing assistance.
Remember that while these business can offer important help, it’s constantly a good concept to have a basic understanding of the ERC requirements and procedure yourself. This will assist you make informed decisions and make sure precise filings.
The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. federal government as part of COVID-19 relief steps. The goal of the ERC is to encourage services to maintain and pay their staff members throughout the pandemic, even if their operations have been affected.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit businesses, tax-exempt companies, and particular governmental entities. To certify, companies must meet one of two requirements:.
The business operations were completely or partially suspended due to a federal government order related to COVID-19.
The business experienced a substantial decrease in gross invoices. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a significant decline is defined as a 20% decline in gross invoices compared to the exact 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 portion (as much as 70%) of certified incomes paid to workers, consisting of certain health plan expenditures. The maximum credit per employee 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 qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they received a PPP loan. The same salaries can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and enhanced, allowing qualified companies to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive arrangement offers an opportunity for companies to modify prior-year income tax return and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their employment tax returns, generally Form 941. The excess can be reimbursed to the employer if the credit surpasses the amount of work taxes owed.
It is very important to note that the ERC arrangements and eligibility criteria have actually evolved gradually. The best course of action is to consult with a tax professional or check out the main internal revenue service website for the most in-depth and current details concerning the ERC, including any recent legislative changes or updates.
To get approved for the ERC, an organization needs to fulfill one of the following requirements:.
Business operations were fully or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decline in gross receipts. For 2021, a significant decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the right away preceding quarter.
The ERC is readily available to companies of all sizes, consisting of tax-exempt organizations, but there are some exceptions. For instance, government entities and organizations that got a PPP loan may have constraints on claiming the credit.
The process for claiming the ERC includes completing the necessary forms and including the credit on your work income tax return (normally Form 941). The exact time it requires to process the credit can vary based upon a number of aspects, consisting of the intricacy of your company and the workload of the IRS. It’s advised to speak with a tax professional for assistance specific to your circumstance.
There are numerous business that can assist with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll provider. Some popular business that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s advisable to research study and contact these companies directly to ask about their services and fees.