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Albany NY Employee Retention Ertc 2021




Alright, everybody, so the SBA this week came out and said that it has stopped accepting new PPP applications from most lenders. The SBA informed lenders this past Tuesday that the PPP general fund was out of money and that the only remaining funds available for new applications are $8 billion set aside for community financial institutions (CFIs), which are institutions that specifically work with businesses in underserved communities. But all is not lost, dear small business owners of America. If you missed out on the PPP or if you did not qualify for the PPP, don't lose hope because you may still qualify for the employee retention credit on all those wages you didn't claim for PPP forgiveness, and this employee retention credit could be worth up to $28,000 per employee. And yes, even if you got PPP money, you can still get a piece of this employee retention credit cake.

How It Works

Even if you don't own a service, be sure to share this video with company owners you know, this video could literally be worth 10s of thousands of dollars for them. And if you are a company owner and after you view this video you desire to talk with me and a member of my group, who will also be either a CPA like myself or an EA, shoot me an e-mail, [email protected], inform me a little about your service and your ballpark year-over-year profits, and let's see if we can get some more money back in your pocket due to the fact that you can take this credit against your payroll taxes you pay by minimizing your needed employment tax deposits or you can ask for an advance payment of the credit using IRS Form 7200, Advance Payment of Employer Credits Due to COVID-19.
 


Because that's the stuff your CPA must stress about, I am not going to get into the intricacies of that type here or the Form 941 and all the payroll things. In this video I desire to tell you what you require to understand so you can go to your CPA and say, "Hey, what about this employee retention credit, why haven't you told me about this?" You can be notified and take ownership of your own tax situations, of your organization's tax circumstance to create more money flow in your service and more wealth for yourself.
 

 


 

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About Employee Retention Ertc 2021

Alright, now let's dig into this and let's talk about the employee retention credit or the ERC as some folks like to call it, before I get into this, I want to state that absolutely nothing in this video is to be taken as legal or tax guidance, this video is for basic educational purposes only, yes, I am a CPA and a tax professional, but I am not your CPA nor your tax professional unless you have engaged my company. Another disclaimer here, for functions of this video I am presuming that if you're viewing this you are a small company owner, which for employee retention credit purposes implies one hundred or fewer staff members for functions of the 2020 credit and 5 hundred or fewer staff members for purposes of the 2021 credit, if you have a company with over five hundred workers I imagine you have in-house counsel, in-house CPAs who are on top of this things, but I'm here for you small organization owners who may work with a local tax expert who is so neck-deep in income tax return today due to the fact that the government extended the tax due date to May 17 or volume is just the nature of their service that your tax specialist hasn't had the time to go into the weeds here like I have.

Employee retention credit, why is it so financially rewarding for company owners in 2021 and why weren't we talking about it in 2020, it's been around considering that then, considering that the CARES Act? Yes, the employee retention credit has actually been around considering that the CARES Act that was passed over a year ago in March 2020, but the employee retention credit didn't get much love last year in 2020 due to the fact that of the PPP, the Paycheck Protection Program.

But the stimulus expense passed in December, the Consolidated Appropriations Act, in addition to the American Rescue Plan Act, passed in February 2021, made modifications to the ERC making it a lot more appealing. Basically the employee retention credit had a glow-up between 2020 and 2021, it went from the nerdy girl with thick glasses and neglected eyebrows and her hair up in 2020 to the belle of the ball for service owners in 2021. Why? Why is the employee retention credit more appealing now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act? I'll inform you why, a few factors.

Why Employee Retention Ertc 2021

Factor, the employee retention credit for both 2020 and 2021 is now offered to PPP receivers, but of course you can't double dip. You can't get PPP for the hundred thousand dollars you paid your employees and then turn around and declare the employee retention credit on those earnings. The government does not look too fondly on paying your payroll for you through the PPP and after that you claiming a credit against the taxes you pay the federal government on those earnings that the federal government paid for you. That makes sense. Now, there's some planning here. If you got PPP and you are qualified for the employee retention credit, then when you do your PPP forgiveness application, you need to choose the very best covered period that will get you full PPP forgiveness however likewise optimize your employee retention credit.



For PPP forgiveness, you desire to fill up that payroll container with as many costs as possible that do not count for employee retention credit purposes. You can't claim the employee retention credit on state unemployment insurance contributions, but state unemployment insurance contributions count toward PPP forgiveness, see? You 'd desire to dispose all your state unemployment insurance coverage contributions on your PPP forgiveness application to leave as much regular salaries as possible to take the employee retention credit on.

So this can get very technical very quickly and it's extremely scenario specific in regards to enhancing PPP vs. ERC and my company has tools to figure this things out for you, I'm not going to go into all that here, however feel in one's bones that you really need to do the math when doing your PPP forgiveness to make certain you're not leaving anything on the table in regards to the employee retention credit. Another thing to note is you can't deduct the incomes you claimed the employee retention credit on, which makes good sense also, why should the government provide you a deduction for these earnings that they already offered you a credit for? So essentially the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I simply like speaking about this things, but let's discuss another reason that the employee retention credit is more appealing now than it was last year, which is that it's simpler to get approved for the employee retention credit in 2021. In 2020, for a quarter to qualify for the employee retention credit, you had to reveal a 50% decrease in gross invoices compared to the exact same calendar quarter in 2019.

However in 2021, for a quarter to get approved for the employee retention credit, you only need to reveal a 20% decrease in gross receipts compared to the same calendar quarter in 2019. So this implies far more businesses will qualify. My organization, for example, experienced a 26% decrease in gross invoices, comparing Q1 2019 to Q1 2021, and it was a similar story in 2015 too.

So I didn't get approved for the 2020 employee retention credit initially, because I got very first round of PPP cash and 2nd due to the fact that my company didn't suffer that big 50% decline needed to qualify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my organization qualifies. For 2021, for any quarter, you can elect to utilize the lookback quarter, implying that, for example, even if your Q1 2021 gross invoices aren't at least 20% lower than your Q1 2019 gross invoices, you can compare for purposes of determining eligibility for the employee retention credit for Q1 2021, you can compare Q4 2020 to Q4 2019. Ramification here is that if you receive Q1 2021 based upon Q1 2021's gross invoices, you will likewise get approved for Q2 2021 given that you qualified in the lookback quarter of Q1 2021.

Same thing for Q2 to Q3 and Q3 to Q4, so basically if you just qualify for Q1 and Q3 2021, you likewise certify for Q2 and Q4 based upon the lookback. Likewise, even if you didn't have an enough decrease in income, you can receive the employee retention credit if you were required to totally or partially suspend operations in your service during any calendar quarter in 2020 or 2021 due to state or federal orders, in which case you are qualified for the employee retention credit throughout that period of partial or full shutdown.

Typical example, you own a dining establishment, and your governor signed an executive order specifying that you require to shut down indoor dining. That is an example of a partial shutdown. Not just are more services eligible for the employee retention credit thanks to these brand-new laws, making PPP recipients qualified for the employee retention credit though not on the very same wages and making more services eligible through the 20% decline threshold rather than the 50% decrease threshold, however the 2021 credit is also more financially rewarding than the 2020 credit.

This is due to the fact that for 2020, the employee retention credit was equal to 50% of all certified earnings for 2020, the employee retention credit amounted to 50% of all qualified incomes you paid employees between March 12, 2020, and December 31, 2020, with a limitation of $10,000 in wages for that entire period. So the optimum 2020 credit per staff member was $5,000. Not bad, however that's absolutely nothing compared to the 2021 credit because for 2021, the credit amounts to 70% of certified incomes per staff member paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in incomes per worker ... for that whole time period? No. Per quarter. For 2021 the portion is more (70% in 2021 vs. 50% in 2020) and you can take it on up to $10,000 in incomes per worker per quarter, so we're talking about an optimum credit of $7,000 per employee per quarter. If you're eligible all 4 quarters, $7,000 times four is $28,000. That's right, folks, the optimum 2021 employee retention credit is $28,000 per worker. That's big. That's a godsend to lots of entrepreneur today. So you see what I suggest now, right, how the employee retention credit has gone from awful duckling in 2020 to lovely swan in 2021, right? And by the way, by the method, qualified earnings includes employer-paid health insurance premiums.


If you got PPP and you are eligible for the employee retention credit, then when you do your PPP forgiveness application, you need to select the finest covered duration that will get you complete PPP forgiveness however likewise optimize your employee retention credit.



Alright, sorry for getting a little sidetracked there, I just love talking about this things, but let's talk about another reason why the employee retention credit is more attractive now than it was last year, and that is that it's easier to certify for the employee retention credit in 2021. I didn't qualify for the 2020 employee retention credit first, since I got first round of PPP money and 2nd since my service didn't suffer that big 50% decline needed to qualify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my organization certifies. Not only are more companies qualified for the employee retention credit thanks to these brand-new laws, making PPP recipients eligible for the employee retention credit though not on the very same earnings and making more services eligible through the 20% decrease limit rather than the 50% decrease limit, but the 2021 credit is also more lucrative than the 2020 credit.

Not bad, but that's nothing compared to the 2021 credit because for 2021, the credit is equal to 70% of certified earnings per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in earnings per worker ... for that entire time period?


           

Just How to Get going

That will certainly discuss on part of their customers to obtain the ideal prices feasible for their existing clients. They will certainly examine old billings for errors getting their clients refunds and also credits.

                                                                                                                                                                                                                    

Services supplied can include:  
 

Devoted experts that will analyze very complex program policies as well as will be readily available to answer your questions, including:

How does the PPP funding aspect right into the ERC?

What are the distinctions between the 2020 and also 2021 programs and also exactly how does it put on your company?

What are aggregation guidelines for larger, multi-state employers, and just how do I interpret numerous states executive orders?

Exactly how do part-time, Union, and tipped staff members impact the quantity of my reimbursements?




Thorough analysis concerning your qualification

Detailed analysis of your case

Guidance on the declaring procedure as well as documents

Certain program experience that a regular CPA or payroll processor could not be well-versed in

Quick as well as smooth end-to-end procedure, from eligibility to declaring and obtaining refunds


 


 
Directory For Employee Retention Ertc 2021 Companies Available in Albany NY
Adams Brown Strategic Allies and CPAs
https://www.adamsbrowncpa.com/ertc-tax-credit-consulting-new-york/
Finance Pro Plus
https://www.financeproplus.com/
Bottom Line Concepts
https://erc.bottomlinesavings.com/
Equifax Workforce Solutions
https://workforce.equifax.com/solutions/employee-retention-credit
Valiant Capital
https://erc.valiant-capital.com/
NYC Business
https://www1.nyc.gov/nycbusiness/article/nyc-employee-retention-grant-program
Omega Funding solutions
https://www.omegafundingsolutions.com/
Disisaster Loan Advisors
https://www.disasterloanadvisors.com/
ERTC Filing
https://info.ertcfiling.com/employee-retention-tax-credit-new-york-11368/

Ready To Begin? Its Simple.
1. Whichever business you select  to work with will establish whether your service certifies and gets approvel for the ERC.

2. They will certainly analyze your claim and compute the optimum amount you can get.

3. Their group guides you with the claiming process, from beginning to finish, consisting of correct documents.

Frequently Asked Questions (FAQs)

What duration does the program cover?

The program started on March 13th, 2020 as well as right on September 30, 2021, for eligible companies.

You can get refunds for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond then too.

Many organizations have received reimbursements, as well as others, in enhancement to reimbursements, likewise qualified to continue getting ERC in every payroll they refine through December 31, 2021, at about 30% of their payroll expense.

Some organizations have actually gotten reimbursements from $100,000 to $6 million.
Do we still certify if we already took the PPP?

Yes. Under the Consolidated Appropriations Act, businesses can currently get the ERC also if they already received a PPP car loan. Keep in mind, though, that the ERC will just put on wages not utilized for the PPP.

sustain a 20% decrease in gross receipts .

A government authority required partial or full shutdown of your company throughout 2020 or 2021. This includes your procedures being limited by business, inability to take a trip or constraints of team meetings.

  • Gross receipt reduction criteria is different for 2020 as well as 2021, however is measured versus the present quarter as compared to 2019 pre-COVID amounts:

    • A federal government authority called for partial or complete shutdown of your company during 2020 or 2021. This includes your operations being limited by business, inability to travel or constraints of group meetings.
    • Gross receipt decrease requirements is different for 2020 and also 2021, however is determined versus the present quarter as contrasted to 2019 pre-COVID amounts.
Do we still qualify if we continued to be open during the pandemic?

Yes. To certify, your organization should meet either among the adhering to criteria:

  • Experienced a decline in gross receipts by 20%, or
  • Needed to transform service operations because of federal government orders

Several items are taken into consideration as modifications in company operations, consisting of changes in job roles and the acquisition of added protective devices.