Lets talk first about how to apply for employee retention credit in Andalusia for Industrial Sand Mining …
Anytime if you have workers between five 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 Concepts they’re the largest processor of these ERC credits this is a 170 page program so it’s hard this isn’t like PPP we simply contact your bank supervisor and state give me a loan it doesn’t work there’s not a loan it’s an application and Josh is going to inform all of us about it and how to get it and why I’ve become yes the Ambassador and paid spokesperson for this I enjoy this program it’s going away soon you got to find out all about it let’s talk worker retention credit Josh Fox what is an ERC let’s just begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act offered services 3 chances 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.
fix the cash money payroll tax refund okay go on sorry I simply have to ensure we got that point I mean that’s a big difference a loan versus cash cash I like money money that’s what we’re speaking 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 real money from the internal revenue service all right so let’s speak about how it works because it sounds like to me if it’s a if it’s staff member retention credit that individual had to be a worker so I’m going to make the Presumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you needed to have actually owned an organization however it’s based upon you having W-2 employees 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 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 two three and 4 of 2020 and you had quarters one 2 and 3 of 2021. alright so that’s how it’s determined you need to be on the W-2 during that period now let’s talk my favorite part cash how much can you get back per staff member that was on a W-2 in those 6 quarters so the computation in 2020 to be exact Kevin is 50 of the staff member’s income to an optimum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers escalated to 70 of the staff member’s wage to an optimum of seven thousand per quarter how did that take place um they simply changed the rules in.
2021 versus since the chaos of the pandemic so they wished to even get more to keep those employees 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 after that what occurs 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 staff member that is since that’s a great deal of money it is now there’s a caution here the PPP cash would have to be decreased from the twenty 6 thousand dollars so if you took PPP loan one and PPP loan 2 you would reduce the 26 000 so what we’re seeing typically Kevin is if you took PPP cash somewhere around 10 thousand dollars an individual so let’s say hypothetically you owned a restaurant in New york city 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 huge clearly now the huge question is why does nobody know about this since look when I first found out about this when I initially satisfied Josh you know I have actually got lots of financial investments in great deals of business I’m a significant supporter for entrepreneurship in America and make many many investments in business owners of which numerous suffered through the pandemic when I initially heard about this I called BS I do not believe it because I utilize 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 which were well been worthy of and we used them wisely to stay alive throughout 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 learn about it I mean 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 real so let’s ask Josh why does nobody understand about the worker retention credit you understand what’s intriguing you’re discussing 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 huge 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 turmoil because remember in the initial cares act you might not do both programs so if you had done PPP you might not do ERC in the initial program and when they altered 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 government never made it clear to anybody about how to.
do this does your CFO understand how to do this not really she or he’s never ever done it before do the banks do it nope the banks do not do it the payroll companies yeah some of them are doing it as a payroll business your accounting professional no your accountant’s never done this prior to unless you have an account that went into this business and bottom line my firm Kevin has stayed in business because 2009 and we have actually been working with the federal government and the state federal government to recuperate money for Fortune 500 Fortune 1000 companies so a great deal of our big huge corporate customers have actually dealt with bottom line to recuperate other government programs we have actually done sales tax and utilize tax joblessness tax work chance tax credits research and development tax credits unclaimed home property tax all of these other government programs.
The worker retention tax credit is a broad based refundable tax credit designed to encourage.
Are you Eligible for Andalusia Industrial Sand Mining ERC Find out now
companies to keep staff members on their payroll. The credit is 50% of approximately $10,000 in salaries paid by an.
Because of COVID-19 or whose gross invoices, employer whose business is fully or partly suspended.
decline by more than 50%.
1. The credit is available to all employers no matter size including tax exempt companies. There are.
just 2 exceptions: (1) state and city governments and their instrumentalities and (2) small.
companies who take Small Business Loans.
2. To certify, the company has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s service is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross receipts are below 50% of the equivalent quarter in 2019. When the.
employer’s gross receipts exceed 80% of a similar quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The quantity of the credit is 50% of the qualifying incomes paid up to $10,000 in overall.
It is effective for earnings paid after March 13th and prior to December 31, 2020.
The definition of certifying incomes varies by whether a company had, usually, basically than.
100 staff members in 2019.
Business that concentrate on ERC filing support typically provide expertise and support to help organizations browse the intricate process of declaring the credit. They can offer numerous services, consisting of:.
How is the employee retention credit calculated? Employee Retention Credit Kevin O\’leary
Eligibility Evaluation: These companies will assess your company’s eligibility for the ERC based upon factors such as your market, profits, and operations. They can assist identify if you meet the requirements for the credit and identify the optimum credit quantity you can declare.
Documentation and Calculation: ERC filing services will help in collecting the needed documentation, such as payroll records and financial declarations, to support your claim. They will likewise help calculate the credit quantity based on qualified earnings and other certifying expenditures.
Retroactive Claim Evaluation: If you are qualified to declare the ERC for previous quarters, these companies can review your past payroll records and financials to recognize possible chances for retroactive credits. They can help you change previous tax returns to declare these refunds.
Filing Support: Companies specializing in ERC filings will prepare and submit the needed kinds and paperwork in your place. This consists of completing Kind 941 or any other necessary tax forms.
Compliance and Updates: ERC guidelines and guidance have actually developed in time. These business remain upgraded with the latest changes and ensure that your filings adhere to the most existing guidelines. If the Internal revenue service demands extra details or performs an audit related to your ERC claim, they can likewise offer continuous assistance.
It is very important to research and vet any business providing ERC filing assistance to guarantee their credibility and competence. Look for established firms with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who offer ERC submitting support.
Keep in mind that while these business can supply important support, it’s always a great idea to have a standard understanding of the ERC requirements and process yourself. This will assist you make notified decisions and make sure precise filings.
The Staff Member Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief steps. The goal of the ERC is to motivate services to retain and pay their employees during the pandemic, even if their operations have actually been affected.
Here are some key points about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit companies, tax-exempt companies, and specific governmental entities. To certify, companies should fulfill one of two requirements:.
Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a substantial decline in gross invoices. As mentioned earlier, for 2021, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a substantial decline is defined as a 20% decrease 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.
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 qualified salaries paid to workers, including particular health plan expenditures. The maximum credit per worker 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 Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows businesses to claim the ERC even if they received a PPP loan. The exact same incomes can not be utilized to declare both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively expanded and enhanced, permitting qualified employers to declare the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement provides an opportunity for companies to modify prior-year income tax return and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their work tax returns, normally Kind 941. If the credit goes beyond the quantity of employment taxes owed, the excess can be reimbursed to the employer.
It is very important to note that the ERC arrangements and eligibility requirements have actually developed gradually. The very best course of action is to talk to a tax professional or go to the main internal revenue service site for the most in-depth and updated info concerning the ERC, consisting of any recent legal changes or updates.
To receive the ERC, an organization needs to fulfill among the following criteria:.
The business operations were totally or partially suspended due to a federal government order related to COVID-19.
The business experienced a significant decline in gross invoices. For 2021, a significant decrease is specified as a 20% decline in gross receipts compared to the very same quarter in 2019. For 2022 and beyond, a substantial decrease is specified as a 20% decrease in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross receipts compared to the immediately preceding quarter.
The ERC is available to organizations of all sizes, including tax-exempt companies, however there are some exceptions. For example, government entities and services that received a PPP loan might have restrictions on declaring the credit.
The procedure for declaring the ERC includes finishing the necessary types and including the credit on your employment income tax return (generally Form 941). The exact time it requires to process the credit can vary based on several elements, including the intricacy of your company and the workload of the internal revenue service. It’s advised to talk to a tax expert for assistance specific to your scenario.
There are several companies that can help with the process of declaring the ERC. Some widely known business that use assistance with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.