Employee Retention Credit for Amusement and Theme Parks in Johnson City 2023 – How to Apply FAQ

Lets talk first about how to apply for employee retention credit in Johnson City for Amusement and Theme Parks …

Anytime if you have employees between 5 and five hundred so I’ve got the professional 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 just call your bank supervisor and say offer me a loan it does not 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 very soon you got to discover everything about it let’s talk worker retention credit Josh Fox what is an ERC let’s simply begin there so throughout the Trump Administration when President Trump was enacted they developed the cares Act and the cares act used businesses 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 big distinction right there two of them are loans and one’s a refund precisely so the ERC is a refund that’s.

correct the money cash payroll tax refund okay go on sorry I simply have to ensure we got that point I indicate that’s a big difference a loan versus cash money I like money 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 lovely tough check in the mail where you get real money from the internal revenue service all right so let’s speak about how it works since it seems like to me if it’s a if it’s staff member retention credit that individual needed to be an employee so I’m going to make the Assumption this money is not for the owner not for people on the cap table not for shareholders it’s for workers right you had 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 workers and you paid federal payroll taxes that’s why you would be qualified so you need 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 correct so there were six quarters the program was open well stroll 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. fine so that’s how it’s determined you need to be on the W-2 throughout that duration now let’s talk my preferred part cash just how much can you return per employee that was on a W-2 in those six quarters so the estimation in 2020 to be precise Kevin is 50 of the staff member’s salary to an optimum of five thousand dollars per staff member for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the staff member’s income to a maximum of 7 thousand per quarter how did that happen um they simply altered the rules in.

2021 versus since the chaos of the pandemic so they wanted 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 develop 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 because that’s a lot of cash it is now there’s a caveat 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 2 you would decrease the 26 000 so what we’re seeing typically Kevin is if you took PPP money someplace around 10 thousand dollars a person 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 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 no one understand about this since appearance when I initially became aware of this when I initially fulfilled Josh you know I have actually got great deals of financial investments in lots of companies I’m a major advocate for entrepreneurship in America and make many numerous investments in business owners of which numerous suffered through the pandemic when I initially found out about this I called BS I do not think it since I utilize the PPP we went through the cash center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans and that were well should have and we utilized them wisely to stay alive 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 contacted us to my political leader buddies 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 details out there then a bunch of people told me well you can’t get it since you took the PPP likewise not real so let’s ask Josh why does nobody learn about the worker retention credit you know what’s interesting you’re discussing the banks Kevin since in the PPP loan procedure 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 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 procedure procedure that’s all um and here there was mayhem due to the fact that keep in mind in the original cares act you could not do both programs so if you had done PPP you could not do ERC in the initial program and when they changed the law in 2021 the banks were refraining from doing ERC because it’s not alone so you’re getting a tax refund so the federal government never ever made it clear to anyone about how to.

do this does your CFO know how to do this not really he or she’s never done it before 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 done this before unless you have an account that entered into this organization and bottom line my firm Kevin has been in business since 2009 and we have actually been dealing with the federal government and the state government to recover money for Fortune 500 Fortune 1000 companies so a lot of our big big business customers have worked with bottom line to recuperate other government programs we have actually done sales tax and use tax unemployment tax work opportunity tax credits research and development tax credits unclaimed property 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 Johnson City Amusement and Theme Parks ERC Find out now

companies to keep workers on their payroll. The credit is 50% of approximately $10,000 in earnings paid by an.
employer whose business is totally or partially suspended because of COVID-19 or whose gross receipts.
decline by more than 50%.
Accessibility.
1. The credit is readily available to all companies no matter size consisting of tax exempt organizations. There are.
just two exceptions: (1) state and local governments and their instrumentalities and (2) small.
businesses 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 employer’s organization is completely or partly suspended by government order due to COVID-19.
throughout the calendar quarter or.
o the employer’s gross invoices are below 50% of the equivalent quarter in 2019. As soon as the.
company’s gross invoices exceed 80% of a similar quarter in 2019 they no longer qualify.
after the end of that quarter.

Estimation of the Credit.
The quantity of the credit is 50% of the qualifying salaries paid up to $10,000 in total.
It is effective for salaries paid after March 13th and before December 31, 2020.
The meaning of qualifying wages varies by whether a company had, on average, more or less than.
100 staff members in 2019.

Companies that concentrate on ERC filing help usually provide know-how and assistance to assist services browse the complex procedure of declaring the credit. They can use numerous services, consisting of:.

 

How is the employee retention credit calculated? Outstanding Employee Retention Credit Scam

Eligibility Assessment: These companies will evaluate your organization’s eligibility for the ERC based on factors such as your market, profits, and operations. If you fulfill the requirements for the credit and recognize the optimum credit amount you can claim, they can help figure out.
Documentation and Estimation: ERC filing services will assist in gathering the essential documents, such as payroll records and monetary declarations, to support your claim. They will also help determine the credit amount based on qualified salaries and other qualifying costs.
Retroactive Claim Review: If you are eligible to claim the ERC for prior quarters, these companies can review your previous payroll records and financials to identify prospective opportunities for retroactive credits. They can help you change prior income tax return to declare these refunds.
Filing Assistance: Companies specializing in ERC filings will prepare and send the required forms and documents on your behalf. This includes completing Type 941 or any other necessary tax return.
Compliance and Updates: ERC guidelines and assistance have progressed in time. These business remain updated with the current modifications and ensure that your filings abide by the most existing standards. If the IRS requests additional info or conducts an audit associated to your ERC claim, they can likewise offer continuous support.
It is essential to research study and veterinarian any business using ERC filing assistance to guarantee their reliability and know-how. Try to find established companies with experience in tax and payroll services, or consider connecting to trusted accounting firms or tax professionals who provide ERC filing support.

Remember that while these companies can provide valuable assistance, it’s constantly a good concept to have a basic understanding of the ERC requirements and process yourself. This will help you make notified choices and make sure precise filings.

The Staff Member 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 encourage companies to keep and pay their workers throughout the pandemic, even if their operations have actually been impacted.

Here are some key points about the ERC:.

Eligibility: The ERC is readily available to qualified companies, consisting of for-profit businesses, tax-exempt companies, and certain governmental entities. To certify, employers need to fulfill one of two requirements:.
The business operations were fully or partially suspended due to a government order related to COVID-19.
Business experienced a considerable decrease in gross receipts. As mentioned earlier, for 2021, a considerable decrease is specified 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% decline 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 amounts to a percentage (as much as 70%) of certified earnings paid to staff members, including certain 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, companies that got an Income Defense Program (PPP) loan were not qualified for the ERC. Nevertheless, legislation passed in late 2020 and extended in 2021 enables businesses to declare the ERC even if they received a PPP loan. The same earnings can not be utilized to claim both the PPP loan forgiveness and the ERC.
Retroactive Provision: The ERC has been retroactively broadened and boosted, allowing eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive provision provides a chance for businesses to modify prior-year tax returns and receive refunds.
Declaring the Credit: Employers can claim the ERC by reporting it on their employment income tax return, normally Form 941. The excess can be reimbursed to the company if the credit exceeds the amount of employment taxes owed.
It’s important to keep in mind that the ERC arrangements and eligibility requirements have progressed gradually. The best course of action is to consult with a tax professional or go to the main IRS site for the most updated and detailed details relating to the ERC, consisting of any current legislative changes or updates.

To get approved for the ERC, an organization needs to fulfill one of the following criteria:.

The business operations were fully or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decline in gross receipts. For 2021, a significant decrease is defined as a 20% decline in gross receipts compared to the exact same quarter in 2019. For 2022 and beyond, a considerable decline 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 right away preceding quarter.
The ERC is readily available to businesses of all sizes, consisting of tax-exempt companies, however there are some exceptions. For example, government entities and services that received a PPP loan might have limitations on claiming the credit.

The process for claiming the ERC involves finishing the needed kinds and including the credit on your work tax return (generally Type 941). The exact time it takes to process the credit can differ based upon numerous factors, including the intricacy of your organization and the work of the IRS. It’s advised to seek advice from a tax professional for assistance specific to your circumstance.

There are a number of business that can assist with the procedure of claiming the ERC. Some well-known business that use support with ERC claims include ADP, Paychex, Deloitte, and Ernst & Young.