Lets talk first about how to apply for employee retention credit in Eureka for Utility System Construction …
Anytime if you have staff members in between five and five hundred so I’ve got the expert with me this is Josh Fox he’s the creator and CEO of bottom line Concepts 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 simply call up your bank manager and state give 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 ended up being yes the Ambassador and paid representative for this I love this program it’s disappearing soon you got to find out everything about it let’s talk employee retention credit Josh Fox what is an ERC let’s just begin there so during the Trump Administration when President Trump was enacted they created the cares Act and the cares act provided companies 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and nearly everybody it makes a huge difference right there 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the money money payroll tax refund alright go on sorry I just have to make sure we got that point I imply that’s a huge distinction a loan versus cash money I like cash 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 hard check in the mail where you get actual money from the internal revenue service all right so let’s speak about how it works since it sounds like to me if it’s a if it’s worker 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 shareholders it’s for staff members right you had to have actually owned a service but it’s based upon you having W-2 staff members in America not 10.99. 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 6 months of 2021 on the W-2 correct so there were six quarters the program was open well stroll us through the 6 quarters so you had quarters two three and 4 of 2020 and you had quarters one 2 and 3 of 2021. okay 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 how much can you return per staff member that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the worker’s salary to a maximum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers escalated to 70 of the employee’s salary to an optimum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus because the chaos of the pandemic so they wished 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 five thousand Max and then 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 staff member that is since that’s a lot of cash it is now there’s a caveat here the PPP money would have to be minimized 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 someplace around ten thousand dollars an individual so let’s say hypothetically you owned a restaurant in New York City where I’m from and you had a hundred staff members and you took PPP cash you would still get a million dollar in the mail from the IRS so it’s big undoubtedly now the huge concern is why does nobody understand about this due to the fact that look when I initially found out about this when I first met Josh you understand I have actually got great deals of financial investments in great deals of business I’m a significant advocate for entrepreneurship in America and make many lots of investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I don’t believe it because 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 which were well should have and we utilized them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t be true but when I dug around I even called to my political leader good friends Governor Senators they didn’t know about it I indicate that’s how you know that’s how misinformation is that there’s no information out there then a bunch of individuals informed me well you can’t get it due to the fact that you took the PPP likewise not real so let’s ask Josh why does no one understand about the staff member retention credit you understand what’s fascinating you’re discussing the banks Kevin because in the PPP loan process 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 process in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process 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 not do 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 federal 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 done it before do the banks do it nope the banks don’t do it the payroll business yeah a few of them are doing it as a payroll company your accounting professional no your accountant’s never done this before unless you have an account that went into this company and bottom line my company Kevin has actually stayed in business since 2009 and we have actually been dealing with the federal government and the state federal government to recover money for Fortune 500 Fortune 1000 companies so a great deal of our huge big corporate customers have dealt with bottom line to recover other government programs we have actually done sales tax and utilize 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 created to encourage.
Are you Eligible for Eureka Utility System Construction ERC Find out now
companies to keep workers on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
Since of COVID-19 or whose gross receipts, company whose business is totally or partially suspended.
decrease by more than 50%.
1. The credit is available to all employers regardless of size including tax exempt organizations. There are.
only 2 exceptions: (1) state and local governments and their instrumentalities and (2) little.
organizations who take Small Business Loans.
2. To certify, the employer needs to meet one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partly suspended by federal 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. As soon as the.
company’s gross invoices 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 certifying wages paid up to $10,000 in overall.
It works for wages paid after March 13th and prior to December 31, 2020.
The meaning of certifying wages varies by whether a company had, usually, basically than.
100 staff members in 2019.
Companies that specialize in ERC filing help typically supply proficiency and support to assist organizations browse the complex process of declaring the credit. They can offer various services, consisting of:.
How is the employee retention credit calculated? What Are Qualified Wages For The Employee Retention Credit 2021
Eligibility Assessment: These companies will examine your company’s eligibility for the ERC based on elements such as your industry, profits, and operations. If you satisfy the requirements for the credit and determine the maximum credit quantity you can declare, they can help identify.
Documentation and Estimation: ERC filing services will help in collecting the necessary paperwork, such as payroll records and monetary declarations, to support your claim. They will also assist determine the credit quantity based on qualified wages and other qualifying costs.
Retroactive Claim Evaluation: If you are qualified to claim the ERC for prior quarters, these business can examine your previous payroll records and financials to recognize possible opportunities for retroactive credits. They can assist you amend prior tax returns to declare these refunds.
Filing Support: Business specializing in ERC filings will prepare and send the needed kinds and documents in your place. This consists of completing Type 941 or any other required tax return.
Compliance and Updates: ERC policies and guidance have actually evolved over time. These companies remain updated with the current changes and ensure that your filings comply with the most existing standards. They can likewise offer continuous assistance if the internal revenue service requests additional info or carries out an audit related to your ERC claim.
It’s important to research and veterinarian any business offering ERC filing help to guarantee their reliability and knowledge. Look for recognized companies with experience in tax and payroll services, or consider reaching out to trusted accounting firms or tax experts who offer ERC filing support.
Remember that while these business can offer valuable help, it’s always an excellent concept to have a fundamental understanding of the ERC requirements and procedure yourself. This will assist you make notified choices and make sure 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 organizations to retain and pay their employees throughout the pandemic, even if their operations have been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to qualified employers, including for-profit organizations, tax-exempt companies, and specific governmental entities. To certify, employers must satisfy one of two criteria:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross invoices. As pointed out previously, for 2021, a considerable decrease is defined as a 20% decrease in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross receipts compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly 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 portion (approximately 70%) of qualified wages paid to employees, including specific health plan expenses. The maximum credit per staff member is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: Initially, companies that got a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 permits services to claim the ERC even if they got a PPP loan. Nevertheless, the exact same earnings can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has actually been retroactively expanded and boosted, enabling qualified employers to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision supplies an opportunity for companies to amend prior-year tax returns and receive refunds.
Claiming the Credit: Employers can declare the ERC by reporting it on their work income tax return, usually Type 941. If the credit surpasses the amount of employment taxes owed, the excess can be refunded to the company.
It is essential to keep in mind that the ERC arrangements and eligibility criteria have evolved with time. The best strategy is to seek advice from a tax professional or go to the official IRS website for the most comprehensive and updated details concerning the ERC, including any current legal modifications or updates.
To get approved for the ERC, a business must meet 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 considerable decrease in gross receipts. For 2021, a substantial decline is defined as a 20% decline in gross receipts compared to the 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% decline in gross invoices compared to the right away preceding quarter.
The ERC is offered to companies of all sizes, including tax-exempt organizations, but there are some exceptions. Government entities and organizations that received a PPP loan may have restrictions on declaring the credit.
The process for declaring the ERC involves completing the needed types and consisting of the credit on your employment income tax return (usually Kind 941). The exact time it takes to process the credit can vary based upon several elements, including the complexity of your company and the workload of the internal revenue service. It’s suggested to speak with a tax professional for assistance specific to your scenario.
There are a number of companies that can assist with the procedure of claiming the ERC. Some well-known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young.