Employee Retention Credit for Residential Mental Health and Substance Abuse Facilities in Shamokin 2023 – How to Apply FAQ

Lets talk first about how to apply for employee retention credit in Shamokin for Residential Mental Health and Substance Abuse Facilities …

Anytime if you have workers between five and five hundred so I’ve got the specialist 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 not easy this isn’t like PPP we just phone your bank supervisor and state provide me a loan it doesn’t 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 employee retention credit Josh Fox what is an ERC let’s simply start there so throughout the Trump Administration when President Trump was enacted they came up with the cares Act and the cares act offered businesses 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 distinction right there 2 of them are loans and one’s a refund precisely so the ERC is a refund that’s.

remedy the cash money payroll tax refund alright go on sorry I simply have to make certain we got that point I mean that’s a big distinction a loan versus cash cash I like cash money that’s what we’re discussing okay 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 stunning hard check in the mail where you get actual money from the IRS all right so let’s speak about how it works since it seems like to me if it’s a if it’s employee retention credit that individual had to be a staff member 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 workers right you needed to have owned a service however it’s based upon you having W-2 staff members in America not 10.99. so as long as you had W-2 staff members 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 first 6 months of 2021 on the W-2 right so there were 6 quarters the program was open well walk 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. okay so that’s how it’s determined you have to be on the W-2 during that duration now let’s talk my preferred part cash how much can you return per worker that was on a W-2 in those six quarters so the computation in 2020 to be specific Kevin is 50 of the worker’s wage to an optimum of 5 thousand dollars per worker for the year of 2020 and in 2021 the numbers skyrocketed to 70 of the employee’s income to an optimum of seven thousand per quarter how did that take place um they just 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 approximately 5 thousand Max and after that what takes place 21 000 Max in 2021 oh that’s how you come up with twenty 6 thousand twenty one thousand to twenty twenty one plus 5 thousand in twenty twenty that’s twenty 6 thousand dollars per employee that is since that’s a great deal of money it is now there’s a caveat here the PPP money would have to be reduced from the twenty six thousand dollars so if you took PPP loan one and PPP loan 2 you would minimize the 26 000 so what we’re seeing on average Kevin is if you took PPP money somewhere around ten thousand dollars an individual so let’s state hypothetically you owned a dining establishment in New york city City where I’m from and you had a hundred employees and you took PPP money you would still get a million dollar in the mail from the internal revenue service so it’s huge certainly now the huge question is why does no one learn about this because look when I first heard about this when I initially satisfied Josh you know I have actually got great deals of investments in lots of companies I’m a significant supporter for entrepreneurship in America and make numerous numerous financial investments in entrepreneurs of which many suffered through the pandemic when I initially heard about this I called BS I don’t believe it due to the fact that I utilize the PPP we went through the money center Banks to get it it was really easy to do we had our CEOs call the banks they got their loans which were well should have and we used them sensibly to survive during the pandemic so when I heard about this I said nah it can’t be true however when I dug around I even contacted us to my politician good friends Guv Senators they didn’t understand about it I mean that’s how you understand that’s how false information is that there’s no info out there then a lot of people informed 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 worker retention credit you know what’s intriguing you’re talking about the banks Kevin due to the fact that in the PPP loan procedure 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 procedure in Canada a pre-pp loan there’s no loans in Canada by the way it’s simply process procedure that’s all um and here there was turmoil since keep in mind in the original cares act you might refrain from doing both programs so if you had actually 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 since it’s not alone so you’re getting a tax refund so the federal government never made it clear to anybody about how to.

do this does your CFO know how to do this not really he or she’s never done it in the past 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 accountant no your accountant’s never done this prior to unless you have an account that entered into this business and bottom line my company Kevin has been in business since 2009 and we have actually been dealing with the federal government and the state federal government to recuperate cash for Fortune 500 Fortune 1000 companies so a lot of our big huge business customers have actually dealt with bottom line to recuperate other federal government programs we have actually done sales tax and utilize tax joblessness tax work opportunity tax credits research and development tax credits unclaimed home real estate tax all of these other government programs.

The employee retention tax credit is a broad based refundable tax credit created to encourage.

 

Are you Eligible for Shamokin Residential Mental Health and Substance Abuse Facilities ERC Find out now

employers to keep employees on their payroll. The credit is 50% of up to $10,000 in earnings paid by an.
employer whose service is fully or partly suspended because of COVID-19 or whose gross invoices.
decline by more than 50%.
Availability.
1. The credit is offered 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) small.
businesses who take Small company Loans.
2. To certify, the employer has to fulfill one of two alternative tests. The tests are calculated each.
calendar quarter– Either.
o the employer’s business is totally or partially suspended by federal government order due to COVID-19.
throughout the calendar quarter or.
o the company’s gross invoices are below 50% of the comparable quarter in 2019. When the.
employer’s gross receipts go above 80% of an equivalent quarter in 2019 they no longer qualify.
after the end of that quarter.

Calculation of the Credit.
The amount of the credit is 50% of the certifying salaries paid up to $10,000 in total.
It works for wages paid after March 13th and before December 31, 2020.
The meaning of qualifying incomes varies by whether an employer had, typically, basically than.
100 staff members in 2019.

Companies that concentrate on ERC filing support usually provide proficiency and support to help services navigate the complex procedure of claiming the credit. They can use various services, including:.

 

How is the employee retention credit calculated? Employee Retention Credit Eligibility 2021

Eligibility Assessment: These companies will assess your company’s eligibility for the ERC based on aspects such as your market, earnings, and operations. If you fulfill the requirements for the credit and identify the optimum credit quantity you can declare, they can assist figure out.
Documents and Calculation: ERC filing services will help in collecting the required documentation, such as payroll records and financial statements, to support your claim. They will likewise help determine the credit quantity based on eligible salaries and other qualifying costs.
Retroactive Claim Evaluation: If you are eligible to declare the ERC for prior quarters, these companies can review your past payroll records and financials to identify possible opportunities for retroactive credits. They can assist you amend previous tax returns to claim these refunds.
Filing Support: Companies specializing in ERC filings will prepare and send the required types and paperwork on your behalf. This consists of completing Type 941 or any other required tax forms.
Compliance and Updates: ERC guidelines and guidance have progressed gradually. These companies stay upgraded with the current modifications and guarantee that your filings abide by the most current standards. If the Internal revenue service requests extra information or carries out an audit associated to your ERC claim, they can likewise offer ongoing support.
It is essential to research and vet any company providing ERC filing assistance to guarantee their credibility and knowledge. Look for established companies with experience in tax and payroll services, or consider reaching out to relied on accounting companies or tax professionals who use ERC submitting support.

Remember that while these business can supply important assistance, it’s always an excellent concept to have a standard understanding of the ERC requirements and procedure yourself. This will assist you make informed choices and make sure precise filings.

The Employee Retention Credit (ERC) is a refundable tax credit presented by the U.S. government as part of COVID-19 relief procedures. The goal of the ERC is to encourage businesses to retain and pay their employees during the pandemic, even if their operations have been impacted.

Here are some bottom lines about the ERC:.

Eligibility: The ERC is readily available to eligible companies, including for-profit businesses, tax-exempt organizations, and certain governmental entities. To qualify, employers should meet one of two 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. As mentioned previously, for 2021, a substantial decline is defined as a 20% decline in gross invoices compared to the exact same quarter in 2019. For 2022 and beyond, a significant decrease is defined as a 20% decline in gross receipts compared to the same quarter in 2019, or a 20% decrease 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 amount is equal to a portion (up to 70%) of qualified earnings paid to staff members, consisting of specific health insurance expenditures. The maximum credit per employee is $7,000 per quarter in 2021 and $10,000 per quarter in 2022 and beyond.
Interaction with PPP: At first, businesses that received a Paycheck Defense Program (PPP) loan were not qualified for the ERC. Legislation passed in late 2020 and extended in 2021 allows companies to declare the ERC even if they got a PPP loan. Nevertheless, the exact same wages can not be used to declare both the PPP loan forgiveness and the ERC.
Retroactive Arrangement: The ERC has been retroactively broadened and enhanced, permitting eligible companies to claim the credit for qualified incomes paid as far back as March 13, 2020. This retroactive arrangement supplies a chance for businesses to modify prior-year tax returns and get refunds.
Claiming the Credit: Employers can claim the ERC by reporting it on their work tax returns, typically Type 941. If the credit exceeds the amount of employment taxes owed, the excess can be refunded to the employer.
It is necessary to note that the ERC provisions and eligibility criteria have actually evolved over time. The best strategy is to seek advice from a tax expert or visit the official IRS site for the most updated and detailed info relating to the ERC, consisting of any recent legal changes or updates.

To qualify for the ERC, an organization needs to satisfy one of the following requirements:.

Business operations were totally or partly suspended due to a government order related to COVID-19.
The business experienced a considerable decrease in gross invoices. For 2021, a significant decrease is defined as a 20% decline in gross invoices compared to the 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% decrease in gross receipts compared to the immediately preceding quarter.
The ERC is offered to organizations of all sizes, including tax-exempt organizations, but there are some exceptions. Federal government entities and organizations that received a PPP loan might have constraints on claiming the credit.

The procedure for declaring the ERC includes completing the necessary types and consisting of the credit on your employment income tax return (usually Type 941). The exact time it takes to process the credit can differ based on numerous factors, consisting of the complexity of your business and the work of the internal revenue service. It’s recommended to speak with a tax professional for guidance particular to your situation.

There are several companies that can assist with the process of declaring the ERC. These consist of accounting companies, tax advisory services, and payroll company. Some widely known companies that use help with ERC claims consist of ADP, Paychex, Deloitte, and Ernst & Young. It’s a good idea to research and call these companies straight to ask about their services and charges.