Lets talk first about how to apply for employee retention credit in Myrtle Beach for Theater Companies and Dinner Theaters …
Anytime if you have employees between five and five hundred so I have actually got the specialist with me this is Josh Fox he’s the founder and CEO of bottom line Principles 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 call your bank manager and state give 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’ve become yes the Ambassador and paid spokesperson for this I love this program it’s going away soon you got to discover everything about it let’s talk staff member retention credit Josh Fox what is an ERC let’s simply begin there so during the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used companies 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 2 of them are loans and one’s a refund exactly so the ERC is a refund that’s.
correct the cash money payroll tax refund fine go on sorry I simply have to make certain we got that point I indicate that’s a huge difference a loan versus cash money I like cash money that’s what we’re discussing alright 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 cash 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 employee retention credit that individual needed to be an employee so I’m going to make the Assumption this cash is not for the owner not for individuals on the cap table not for investors it’s for employees right you had to have owned a business however it’s based upon you having W-2 staff members in America not 10.99. so 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 need to be on payroll for the very 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 2 3 and 4 of 2020 and you had quarters one 2 and three of 2021. fine so that’s how it’s measured you need to be on the W-2 during that duration now let’s talk my preferred part money just how much can you return per worker that was on a W-2 in those six quarters so the calculation in 2020 to be precise Kevin is 50 of the worker’s salary to a maximum of five thousand dollars per worker for the year of 2020 and in 2021 the numbers increased to 70 of the staff member’s wage to a maximum of seven thousand per quarter how did that occur um they simply altered the rules in.
2021 versus since the chaos 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 create twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 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 need to be minimized from the twenty six thousand dollars so if you took PPP loan one and PPP loan two you would reduce the 26 000 so what we’re seeing usually Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a restaurant in New York City where I’m from and you had a hundred workers and you took PPP money you would still get a million dollar in the mail from the IRS so it’s huge certainly now the huge concern is why does nobody understand about this due to the fact that look when I initially became aware of this when I initially satisfied Josh you understand I have actually got great deals of investments in lots of companies I’m a significant advocate for entrepreneurship in America and make numerous numerous investments in business owners of which numerous suffered through the pandemic when I first heard about this I called BS I don’t think it because I use 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 and that were well been worthy of and we used them carefully to survive throughout the pandemic so when I heard about this I said nah it can’t be true but when I dug around I even called to my politician buddies Governor Senators they didn’t know about it I indicate that’s how you understand that’s how false information is that there’s no details out there then a bunch of individuals informed me well you can’t get it since you took the PPP also not true so let’s ask Josh why does nobody know about the staff member retention credit you understand what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan process the federal government made it extremely 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 just process process that’s all um and here there was turmoil because keep in mind in the original 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 ever made it clear to anyone about how to.
do this does your CFO understand how to do this not really she or he’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 business your accountant no your accounting professional’s never ever done this before unless you have an account that entered into this service and bottom line my firm Kevin has stayed in business given that 2009 and we’ve 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 big business customers have actually dealt with bottom line to recover other federal government programs we have actually done sales tax and use tax unemployment 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 designed to encourage.
Are you Eligible for Myrtle Beach Theater Companies and Dinner Theaters ERC Find out now
companies to keep staff members on their payroll. The credit is 50% of as much as $10,000 in salaries paid by an.
Because of COVID-19 or whose gross invoices, employer whose business is completely or partly suspended.
decrease by more than 50%.
1. The credit is readily available to all companies no matter size consisting of tax exempt companies. There are.
just two exceptions: (1) state and city governments and their instrumentalities and (2) small.
businesses who take Small company Loans.
2. To certify, the employer needs to fulfill one of two alternative tests. The tests are determined each.
calendar quarter– Either.
o the company’s company is completely or partially suspended by federal government order due to COVID-19.
during the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. Once the.
employer’s gross invoices go above 80% of a comparable quarter in 2019 they no longer qualify.
after completion of that quarter.
Estimation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in overall.
It works for incomes paid after March 13th and before December 31, 2020.
The definition of certifying wages differs by whether a company had, typically, more or less than.
100 staff members in 2019.
Companies that specialize in ERC filing assistance generally provide know-how and assistance to assist companies navigate the intricate process of declaring the credit. They can use numerous services, including:.
How is the employee retention credit calculated? Employee Retention Credit 3Rd Quarter 2021
Eligibility Assessment: These business will examine your business’s eligibility for the ERC based on factors such as your market, income, and operations. If you satisfy the requirements for the credit and determine the maximum credit amount you can claim, they can assist identify.
Documentation and Estimation: ERC filing services will assist in collecting the necessary documents, such as payroll records and financial statements, to support your claim. They will likewise assist calculate the credit amount based upon qualified wages and other certifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these business can review your previous payroll records and financials to identify possible chances for retroactive credits. They can assist you change previous income tax return to declare these refunds.
Filing Help: Business concentrating on ERC filings will prepare and send the necessary forms and documents in your place. This consists of finishing Kind 941 or any other necessary tax return.
Compliance and Updates: ERC regulations and guidance have evolved with time. These companies stay upgraded with the most recent changes and ensure that your filings abide by the most present standards. They can also provide continuous support if the internal revenue service demands additional details or carries out an audit related to your ERC claim.
It is essential to research and vet any company providing ERC filing assistance to ensure their trustworthiness and competence. Try to find recognized companies with experience in tax and payroll services, or consider connecting to relied on accounting companies or tax specialists who offer ERC submitting support.
Remember that while these business can offer valuable help, it’s constantly a good idea to have a fundamental understanding of the ERC requirements and procedure yourself. This will help you make notified decisions and ensure 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 measures. The goal of the ERC is to motivate services to maintain and pay their staff members throughout the pandemic, even if their operations have actually been impacted.
Here are some bottom lines about the ERC:.
Eligibility: The ERC is available to qualified employers, including for-profit businesses, tax-exempt companies, and specific governmental entities. To certify, companies should satisfy one of two criteria:.
Business operations were completely or partially suspended due to a federal government order related to COVID-19.
Business experienced a substantial decrease in gross receipts. As discussed previously, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019. For 2022 and beyond, a considerable decline is defined as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the immediately 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 certain 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, organizations that received an Income Defense Program (PPP) loan were not eligible for the ERC. Legislation passed in late 2020 and extended in 2021 permits companies to claim the ERC even if they received a PPP loan. The same incomes can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively expanded and enhanced, permitting qualified companies to claim the credit for certified wages paid as far back as March 13, 2020. This retroactive arrangement supplies an opportunity for services to amend 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 company if the credit exceeds the quantity of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility criteria have progressed over time. The best strategy is to seek advice from a tax professional or check out the official internal revenue service website for the most up-to-date and comprehensive details relating to the ERC, including any recent legislative modifications or updates.
To receive the ERC, a company should meet one of the following criteria:.
Business operations were completely or partially suspended due to a government order related to COVID-19.
Business experienced a significant decline in gross invoices. For 2021, a significant decrease is specified as a 20% decrease in gross invoices compared to the same quarter in 2019. For 2022 and beyond, a significant decline is specified as a 20% decline in gross invoices compared to the very same quarter in 2019, or a 20% decline in gross invoices compared to the instantly preceding quarter.
The ERC is readily available to businesses of all sizes, including tax-exempt companies, but there are some exceptions. For instance, government entities and businesses that received a PPP loan may have limitations on claiming the credit.
The procedure for declaring the ERC involves finishing the required types and consisting of the credit on your employment income tax return (generally Kind 941). The exact time it takes to process the credit can vary based on several elements, consisting of the complexity of your company and the work of the IRS. It’s recommended to talk to a tax professional for guidance particular to your scenario.
There are several business that can aid with the procedure of declaring the ERC. These consist of accounting firms, tax advisory services, and payroll service providers. Some well-known companies that offer help with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young. It’s suggested to research and call these business directly to ask about their charges and services.