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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.
I am not going to get into the intricacies of that kind here or the Form 941 and all the payroll things because that's the stuff your CPA must stress over. In this video I want to inform you what you require to understand so you can go to your CPA and state, "Hey, what about this employee retention credit, why haven't you informed me about this?" so you can be notified and take ownership of your own tax scenarios, of your business's tax scenario to create more capital in your service and more wealth on your own.
Solutions provided can include:
Dedicated professionals that will interpret highly intricate program policies as well as will be readily available to answer your inquiries, including:
What duration does the program cover?
Bayside NY Employee Retention Credit 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.
Exactly How It Works
This is huge, a lot of little service owners do not know about this, or they've become aware of it, but they do not know much about it, even lots of tax specialists don't understand the ins and outs of this thing since it's new and a lot of these modifications
that are beneficial to company owners occurred in the middle of tax season. So in this video I'm going to dig into the employee retention credit, why it's so financially rewarding now in 2021, more rewarding, much more rewarding, in truth now than it remained in 2020, 5x more profitable at least. Even if you do not own a company, be sure to share this video with business owners you understand, this video might literally be worth tens of thousands of dollars for them. And if you are a service owner and after you enjoy this video you want to talk with me and a member of my team, who will also be either a CPA like myself or an EA, shoot me an email, [email protected], inform me a little about your service and your ballpark year-over-year revenue, and let's see if we can get some more cash back in your pocket due to the fact that you can take this credit against your payroll taxes you pay by decreasing your required 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. I am not going to get into the intricacies of that kind here or the Form 941 and all the payroll things because that's the stuff your CPA must stress over. In this video I want to inform you what you require to understand so you can go to your CPA and state, "Hey, what about this employee retention credit, why haven't you informed me about this?" so you can be notified and take ownership of your own tax scenarios, of your business's tax scenario to create more capital in your service and more wealth on your own.
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About Employee Retention Credit 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, prior to I get into this, I want to say that nothing in this video is to be taken as legal or tax advice, this video is for basic educational purposes just, yes, I am a CPA and a tax expert, but I am not your CPA nor your tax professional unless you have engaged my company. Another disclaimer here, for purposes of this video I am assuming that if you're enjoying this you are a small company owner, which for employee retention credit functions means one hundred or less staff members for functions of the 2020 credit and five hundred or fewer staff members for purposes of the 2021 credit, if you have a company with over 5 hundred employees I picture you have in-house counsel, in-house CPAs who are on top of this stuff, but I'm here for you small business owners who may work with a local tax expert who is so neck-deep in income tax return today because the federal government extended the tax deadline to May 17 or volume is just the nature of their service that your tax professional hasn't had the time to dig into the weeds here like I have.
So employee retention credit, why is it so profitable for service owners in 2021 and why weren't we talking about it in 2020, it's been around ever since, because the CARES Act? Why is it getting all this buzz now that it wasn't last year? Well, let's back it up. Yes, the employee retention credit has actually been around because the CARES Act that was passed over a year ago in March 2020, however the employee retention credit didn't get much love in 2015 in 2020 due to the fact that of the PPP, the Paycheck Protection Program. Originally, in 2020, if you got a PPP loan as a company, you were not qualified for the employee retention credit.
Generally the employee retention credit had a glow-up in between 2020 and 2021, it went from the nerdy lady with thick glasses and neglected eyebrows and her hair up in 2020 to the belle of the ball for service owners in 2021. Why is the employee retention credit more attractive now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act?
Why Employee Retention Credit 2021
Reason, the employee retention credit for both 2020 and 2021 is now available to PPP recipients, 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. If you got PPP and you are eligible for the employee retention credit, then when you do your PPP forgiveness application, you need to choose the best covered duration that will get you full PPP forgiveness however also optimize your employee retention credit.
For PPP forgiveness, you desire to fill up that payroll container with as many costs as possible that don't count for employee retention credit functions. For instance, you can't declare the employee retention credit on state unemployment insurance contributions, however state joblessness insurance contributions count towards PPP forgiveness, see? You 'd desire to dispose all your state joblessness insurance coverage contributions on your PPP forgiveness application to leave as much normal incomes as possible to take the employee retention credit on.
Another thing to note is you can't deduct the wages you declared the employee retention credit on, and that makes sense as well, why should the federal government give you a deduction for these salaries that they already provided you a credit for? Alright, sorry for getting a little sidetracked there, I simply enjoy 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 much easier to certify for the employee retention credit in 2021.
But in 2021, for a quarter to certify for the employee retention credit, you just require to reveal a 20% decrease in gross invoices compared to the exact same calendar quarter in 2019. So this means far more organizations will certify. My business, for example, experienced a 26% decline in gross receipts, comparing Q1 2019 to Q1 2021, and it was a comparable story in 2015 too.
I didn't qualify for the 2020 employee retention credit first, because I got first round of PPP cash and 2nd due to the fact that my business didn't suffer that large 50% decline needed to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my organization certifies. Likewise, for 2021, for any quarter, you can choose to utilize the lookback quarter, indicating that, for instance, even if your Q1 2021 gross receipts aren't a minimum of 20% lower than your Q1 2019 gross receipts, you can compare for purposes of determining eligibility for the employee retention credit for Q1 2021, you can compare Q4 2020 to Q4 2019. Implication here is that if you receive Q1 2021 based on Q1 2021's gross invoices, you will likewise qualify for Q2 2021 considering that you qualified in the lookback quarter of Q1 2021.
Same thing for Q2 to Q3 and Q3 to Q4, so essentially if you simply qualify for Q1 and Q3 2021, you likewise receive Q2 and Q4 based upon the lookback. Likewise, even if you didn't have a sufficient decrease in earnings, you can receive the employee retention credit if you were needed to completely or partially suspend operations in your company 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 duration of complete or partial shutdown.
Typical example, you own a dining establishment, and your guv signed an executive order stating that you require to close down indoor dining. That is an example of a partial shutdown. Not only are more organizations qualified for the employee retention credit thanks to these brand-new laws, making PPP receivers qualified for the employee retention credit though not on the exact same salaries and making more businesses eligible through the 20% decrease threshold rather than the 50% decline limit, however the 2021 credit is likewise 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 incomes per staff member paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in wages per staff member ... for that whole time duration? For 2021 the portion is more (70% in 2021 vs. 50% in 2020) and you can take it on up to $10,000 in wages per worker per quarter, so we're talking about an optimum credit of $7,000 per staff member per quarter. That's right, folks, the maximum 2021 employee retention credit is $28,000 per staff member.
If you got PPP and you are qualified for the employee retention credit, then when you do your PPP forgiveness application, you require to select the best covered duration that will get you complete PPP forgiveness however also maximize your employee retention credit.
Alright, sorry for getting a little sidetracked there, I simply like talking about this stuff, however let's talk about another reason why the employee retention credit is more appealing 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, due to the fact that I got first round of PPP money and 2nd because my service didn't suffer that large 50% decline needed to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my business qualifies. Not only are more businesses eligible for the employee retention credit thanks to these brand-new laws, making PPP receivers qualified for the employee retention credit though not on the same earnings and making more companies eligible through the 20% decline threshold rather than the 50% decline limit, but the 2021 credit is likewise more financially rewarding than the 2020 credit.
Not bad, but that's absolutely nothing compared to the 2021 credit due to the fact that for 2021, the credit is equivalent to 70% of certified earnings per worker paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in incomes per worker ... for that whole time period?
Exactly How to Begin
The best way is to collaborate with a no-risk, contingency-based price financial savings company. That will certainly work out in support of their customers to obtain the most effective costs possible for their existing clients. They will certainly examine old invoices for mistakes getting their customers reimbursements and also credits. They can raise the success as well as overall evaluation of their clients companies.
Solutions provided can include:
Dedicated professionals that will interpret highly intricate program policies as well as will be readily available to answer your inquiries, including:
Just how does the PPP lending aspect into the ERC?
What are the differences in between the 2020 and 2021 programs and also exactly how does it put on your company?
What are gathering rules for larger, multi-state companies, and also exactly how do I analyze several states executive orders?
How do part-time, Union, and tipped workers influence the quantity of my refunds?
Comprehensive analysis regarding your qualification
Extensive analysis of your claim
Advice on the declaring procedure and also documents
Details program competence that a regular certified public accountant or payroll cpu could not be well-versed in
Fast as well as smooth end-to-end procedure, from qualification to declaring and receiving reimbursements
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| 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/ |
Prepared To Obtain Begun? Its Simple.
1. Whichever company you pick to work with will certainly determine whether your company certifies and gets approvel for the ERC.
2. They will analyze your case and also compute the optimum quantity you can get.
3. Their team overviews you via the asserting process, from beginning to end, consisting of correct paperwork.
Frequently Asked Questions (FAQs)
What duration does the program cover?
The program began on March 13th, 2020 as well as right on September 30, 2021, for eligible organizations.
You can use for reimbursements for 2020 as well as 2021 after December 31st of this year, into 2022 and 2023. And also possibly beyond then too.
Many businesses have received refunds, as well as others, in addition to refunds, additionally qualified to continue obtaining ERC in every pay-roll they refine through December 31, 2021, at about 30% of their payroll cost.
Some companies have actually obtained refunds from $100,000 to $6 million.
Do we still certify if we currently took the PPP?
Yes. Under the Consolidated Appropriations Act, businesses can now get the ERC even if they already got a PPP finance. Note, though, that the ERC will only put on incomes not utilized for the PPP.
Do we still certify if we did not incur a 20% decrease in gross receipts .
A federal government authority called for partial or complete shutdown of your organization during 2020 or 2021. This includes your operations being limited by commerce, inability to take a trip or restrictions of team conferences.
- Gross invoice reduction requirements is different for 2020 and also 2021, however is determined against the present quarter as contrasted to 2019 pre-COVID quantities:
- A government authority required partial or full closure of your business throughout 2020 or 2021. This includes your procedures being restricted by commerce, failure to take a trip or restrictions of group conferences.
- Gross invoice decrease requirements is different for 2020 and 2021, yet is gauged versus the existing quarter as contrasted to 2019 pre-COVID quantities.
Do we still certify if we continued to be open during the pandemic?
Yes. To qualify, your service needs to satisfy either one of the complying with requirements:
- Experienced a decrease in gross receipts by 20%, or
- Had to change company operations as a result of federal government orders
Many products are thought about as changes in company operations, including changes in work roles and also the purchase of added safety equipment.