Lets talk first about how to apply for employee retention credit in Grenada for Deep Sea Freight Transportation …
Anytime if you have employees in between 5 and five hundred so I have actually got the expert with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 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 become yes the Ambassador and paid spokesperson for this I like this program it’s going away soon you got to learn everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act provided organizations 3 opportunities you had the PPP loan you had the eidl loan and you had the ERC tax refund and practically everyone it makes a huge difference right there two of them are loans and one’s a refund exactly so the ERC is a refund that’s.
remedy the cash cash payroll tax refund all right go on sorry I simply need to ensure we got that point I mean that’s a big distinction a loan versus money money I like cash money that’s what we’re talking about all right 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 lovely 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 employee 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 individuals on the cap table not for investors it’s for staff members right you had to have actually owned a company however it’s based upon you having W-2 workers in America not 10.99. As long as you had W-2 workers and you paid federal payroll taxes that’s why you would be qualified so you have to be on payroll in 2020 on the W-2 and you have to be on payroll for the very first six months of 2021 on the W-2 appropriate so there were six quarters the program was open well walk us through the six quarters so you had quarters 2 3 and 4 of 2020 and you had quarters one two and three of 2021. alright so that’s how it’s determined you need to be on the W-2 throughout that period now let’s talk my favorite part money just 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 specific Kevin is 50 of the staff member’s wage to a maximum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s salary to a maximum of seven thousand per quarter how did that happen um they simply changed the rules in.
2021 versus since the mayhem 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 then what happens 21 000 Max in 2021 oh that’s how you come up with twenty six thousand twenty one thousand to twenty twenty one plus five thousand in twenty twenty that’s twenty six thousand dollars per worker that is because that’s a great deal of cash it is now there’s a caution here the PPP cash would have to be lowered 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 typically Kevin is if you took PPP cash someplace around 10 thousand dollars a person so let’s say hypothetically you owned a restaurant in New york city City where I’m from and you had a hundred employees and you took PPP cash you would still get a million dollar in the mail from the internal revenue service so it’s substantial obviously now the huge concern is why does nobody learn about this due to the fact that appearance when I initially became aware of 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 supporter for entrepreneurship in America and make numerous 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 believe it since I use the PPP we went through the cash 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 used them sensibly to survive during the pandemic so when I became aware of this I said nah it can’t hold true but when I dug around I even called to my politician friends 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 lot of individuals told 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 employee retention credit you know what’s intriguing you’re speaking about the banks Kevin because in the PPP loan process 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 huge 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 process process that’s all um and here there was chaos due to the fact that remember in the original cares act you might not do both programs so if you had actually done PPP you could not do ERC in the initial program and when they altered the law in 2021 the banks were not doing ERC since it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to any person about how to.
do this does your CFO know 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 companies yeah a few of them are doing it as a payroll company your accounting professional no your accounting professional’s never ever done this prior to unless you have an account that went into this service and bottom line my company Kevin has stayed in business because 2009 and we’ve been dealing with the federal government and the state government to recuperate money for Fortune 500 Fortune 1000 companies so a lot of our big big business clients have dealt with bottom line to recuperate other government programs we’ve done sales tax and utilize tax unemployment tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.
The staff member retention tax credit is a broad based refundable tax credit designed to motivate.
Are you Eligible for Grenada Deep Sea Freight Transportation ERC Find out now
employers to keep employees on their payroll. The credit is 50% of as much as $10,000 in incomes paid by an.
Because of COVID-19 or whose gross receipts, employer whose organization is fully or partly suspended.
decrease by more than 50%.
1. The credit is available to all employers no matter size consisting of tax exempt companies. There are.
only 2 exceptions: (1) state and city governments and their instrumentalities and (2) little.
companies who take Small company Loans.
2. To certify, the employer needs to satisfy one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the company’s service is completely 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 equivalent quarter in 2019. Once the.
company’s gross invoices exceed 80% of a comparable quarter in 2019 they no longer certify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the certifying incomes paid up to $10,000 in total.
It is effective for incomes paid after March 13th and before December 31, 2020.
The meaning of certifying wages differs by whether a company had, on average, more or less than.
100 workers in 2019.
Business that focus on ERC filing support usually offer knowledge and assistance to help companies browse the complex procedure of declaring the credit. They can use various services, including:.
How is the employee retention credit calculated? Employee Retention Credit American Rescue Plan
Eligibility Assessment: These business will assess your service’s eligibility for the ERC based upon factors such as your market, revenue, and operations. If you fulfill the requirements for the credit and recognize the maximum credit amount you can claim, they can help figure out.
Documentation and Computation: ERC filing services will assist in collecting the required documentation, such as payroll records and financial declarations, to support your claim. They will likewise help compute the credit quantity based on eligible salaries and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for previous quarters, these companies can evaluate your previous payroll records and financials to recognize prospective chances for retroactive credits. They can help you change prior tax returns to claim these refunds.
Filing Assistance: Business specializing in ERC filings will prepare and submit the needed kinds and documents on your behalf. This consists of completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and assistance have actually developed gradually. These business stay updated with the most recent modifications and guarantee that your filings adhere to the most existing guidelines. If the Internal revenue service demands extra information or performs an audit associated to your ERC claim, they can also provide ongoing support.
It is essential to research and vet any business offering ERC filing support to ensure their reliability and expertise. Search for recognized firms with experience in tax and payroll services, or consider reaching out to relied on accounting firms or tax professionals who use ERC filing support.
Keep in mind that while these business can provide valuable assistance, it’s always a great idea to have a basic understanding of the ERC requirements and process yourself. This will help you make informed choices and ensure 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 procedures. The goal of the ERC is to motivate companies to keep and pay their employees throughout the pandemic, even if their operations have been impacted.
Here are some key points about the ERC:.
Eligibility: The ERC is readily available to eligible employers, consisting of for-profit organizations, tax-exempt companies, and certain governmental entities. To qualify, employers should meet one of two requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As discussed previously, for 2021, a considerable decline is specified as a 20% decrease in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decline in gross receipts 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 company’s share of Social Security taxes. The credit amount is equal to a percentage (approximately 70%) of certified wages paid to staff members, including particular health insurance costs. 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, organizations that received an Income Security Program (PPP) loan were not eligible for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 allows businesses to declare the ERC even if they got a PPP loan. However, the very same earnings can not be used to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has actually been retroactively broadened and enhanced, allowing eligible employers to declare the credit for certified earnings paid as far back as March 13, 2020. This retroactive provision provides a chance for companies to change prior-year income tax return and get refunds.
Declaring the Credit: Companies can declare the ERC by reporting it on their employment tax returns, typically Type 941. If the credit exceeds the amount of employment taxes owed, the excess can be reimbursed to the employer.
It is very important to keep in mind that the ERC provisions and eligibility criteria have actually developed over time. The very best course of action is to speak with a tax expert or visit the official internal revenue service site for the most comprehensive and current info regarding the ERC, including any recent legislative modifications or updates.
To receive the ERC, an organization must satisfy one of the following criteria:.
The business operations were fully or partly suspended due to a federal government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a substantial decrease is defined 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% decline in gross receipts compared to the very same quarter in 2019, or a 20% decrease in gross invoices compared to the immediately preceding quarter.
The ERC is readily available to organizations of all sizes, consisting of tax-exempt organizations, however there are some exceptions. For example, federal government entities and services that received a PPP loan might have limitations on declaring the credit.
The process for claiming the ERC includes completing the necessary forms and consisting of the credit on your employment tax return (generally Type 941). The exact time it requires to process the credit can vary based upon several elements, including the intricacy of your business and the workload of the IRS. It’s recommended to talk to a tax expert for guidance specific to your scenario.
There are a number of companies that can assist with the process of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll company. Some well-known companies that use assistance with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these business directly to inquire about their costs and services.