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Bayside NY Employee Retention Ertc




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.

Just how It Functions

This is big, a great deal of small service owners don't know about this, or they've become aware of it, however they do not understand much about it, even many tax experts don't know the ins and outs of this thing because it's brand-new and a great deal of these changes

that are helpful to company owner happened in the middle of tax season. So in this video I'm going to dig into the employee retention credit, why it's so lucrative now in 2021, more lucrative, much more lucrative, in truth now than it remained in 2020, 5x more profitable at least. So even if you do not own a business, make certain to share this video with company owner you know, this video might actually be worth 10s 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 group, who will likewise 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 income, and let's see if we can get some more cash back in your pocket since you can take this credit versus your payroll taxes you pay by lowering your required work tax deposits or you can request an advance payment of the credit utilizing IRS Form 7200, Advance Payment of Employer Credits Due to COVID-19.
 


Since that's the stuff your CPA ought to worry about, I am not going to get into the complexities of that kind here or the Form 941 and all the payroll things. In this video I wish to tell you what you need to understand so you can go to your CPA and state, "Hey, what about this employee retention credit, why haven't you told me about this?" You can be informed and take ownership of your own tax scenarios, of your company's tax scenario to produce more cash circulation in your organization and more wealth for yourself.
 

 


 

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About Employee Retention Ertc

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 desire to state that nothing in this video is to be taken as legal or tax guidance, this video is for basic informational purposes only, yes, I am a tax and a certified public accountant expert, but I am not your CPA nor your tax expert unless you have engaged my firm. Another disclaimer here, for functions of this video I am assuming that if you're viewing this you are a small business owner, which for employee retention credit purposes indicates one hundred or fewer employees for purposes of the 2020 credit and five hundred or less workers for purposes of the 2021 credit, if you have a company with over 5 hundred staff members I envision you have in-house counsel, in-house CPAs who are on top of this things, but I'm here for you little company owners who might work with a regional tax expert who is so neck-deep in income tax return right now because the federal government extended the tax due date to May 17 or volume is simply the nature of their organization that your tax professional hasn't had the time to dig into the weeds here like I have.

Employee retention credit, why is it so lucrative for organization owners in 2021 and why weren't we talking about it in 2020, it's been around since then, 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 considering that 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. Initially, in 2020, if you got a PPP loan as an employer, you were not qualified for the employee retention credit.

Basically the employee retention credit had a glow-up between 2020 and 2021, it went from the unpopular lady with thick glasses and neglected eyebrows and her hair up in 2020 to the belle of the ball for business owners in 2021. Why is the employee retention credit more appealing now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act?

Why Employee Retention Ertc

Factor, the employee retention credit for both 2020 and 2021 is now available to PPP receivers, however of course you can't double dip. You can't get PPP for the hundred thousand dollars you paid your staff members and then turn around and declare the employee retention credit on those earnings. If you got PPP and you are qualified for the employee retention credit, then when you do your PPP forgiveness application, you require to pick the best covered period that will get you complete PPP forgiveness but likewise optimize your employee retention credit.



Also, for PPP forgiveness, you desire to fill up that payroll bucket with as lots of costs as possible that do not count for employee retention credit functions. You can't declare the employee retention credit on state unemployment insurance coverage contributions, however state unemployment insurance contributions count towards PPP forgiveness, see? You 'd want to discard all your state joblessness insurance coverage contributions on your PPP forgiveness application to leave as much regular earnings as possible to take the employee retention credit on.

This can get very technical extremely fast and it's extremely circumstance particular in terms of enhancing PPP vs. ERC and my firm has tools to figure this stuff out for you, I'm not going to dig into all that here, however just know that you really have to do the math when doing your PPP forgiveness to make sure you're not leaving anything on the table in terms of the employee retention credit. Another thing to note is you can't deduct the incomes you claimed the employee retention credit on, and that makes sense too, why should the federal government provide you a reduction for these earnings that they already provided you a credit for? Essentially the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I just like discussing this stuff, however let's discuss another reason the employee retention credit is more appealing now than it was last year, and that is that it's easier to receive the employee retention credit in 2021. In 2020, for a quarter to certify for the employee retention credit, you had to reveal a 50% reduction in gross invoices compared to the very same calendar quarter in 2019.

In 2021, for a quarter to qualify for the employee retention credit, you only need to reveal a 20% decline in gross invoices compared to the same calendar quarter in 2019. So this means even more businesses 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 very first round of PPP cash and 2nd due to the fact that my company 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. For 2021, for any quarter, you can choose to use the lookback quarter, indicating 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 identifying eligibility for the employee retention credit for Q1 2021, you can compare Q4 2020 to Q4 2019. Implication here is that if you qualify for Q1 2021 based on Q1 2021's gross invoices, you will also get approved for Q2 2021 given that you certified in the lookback quarter of Q1 2021.

Very same thing for Q2 to Q3 and Q3 to Q4, so essentially if you just receive Q1 and Q3 2021, you also certify for Q2 and Q4 based upon the lookback. Even if you didn't have an enough decline in earnings, you can certify for the employee retention credit if you were needed to totally or partly suspend operations in your company during any calendar quarter in 2020 or 2021 due to state or federal orders, in which case you are eligible for the employee retention credit during that duration of partial or complete shutdown.

Common example, you own a restaurant, and your guv signed an executive order stating that you need to close down indoor dining. That is an example of a partial shutdown. Likewise, not just are more businesses qualified for the employee retention credit thanks to these new laws, making PPP recipients qualified for the employee retention credit though not on the very same earnings and making more organizations eligible through the 20% decline limit rather than the 50% decrease limit, however the 2021 credit is also more lucrative than the 2020 credit.

This is due to the fact that for 2020, the employee retention credit was equivalent to 50% of all certified earnings for 2020, the employee retention credit amounted to 50% of all certified wages you paid staff members between March 12, 2020, and December 31, 2020, with a limit of $10,000 in salaries for that whole time period. So the optimum 2020 credit per employee was $5,000. Okay, but that's nothing compared to the 2021 credit because for 2021, the credit is equal to 70% of qualified salaries per staff member paid from January 1, 2021 through December 31, 2021, limited to $10,000 in salaries per employee ... for that entire period? No. Per quarter. So for 2021 the percentage is more (70% in 2021 vs. 50% in 2020) and you can take it on up to $10,000 in salaries per employee per quarter, so we're discussing a maximum credit of $7,000 per worker per quarter. If you're qualified all 4 quarters, $7,000 times 4 is $28,000. That's right, folks, the optimum 2021 employee retention credit is $28,000 per worker. That's big. That's a blessing to many entrepreneur right now. So you see what I mean now, right, how the employee retention credit has gone from ugly duckling in 2020 to stunning swan in 2021, right? And by the way, by the method, qualified earnings includes employer-paid health insurance coverage 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 choose the best covered period that will get you full PPP forgiveness but likewise maximize your employee retention credit.



Alright, sorry for getting a little sidetracked there, I simply enjoy talking about this things, however let's talk about another factor 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 initially, because I got first round of PPP money and 2nd since my service didn't suffer that large 50% decline required to qualify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my service certifies. Not only are more services 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 very same earnings and making more businesses eligible through the 20% decline limit rather than the 50% decrease threshold, however the 2021 credit is also more profitable than the 2020 credit.

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


           

Exactly How to Start

That will negotiate on part of their customers to get the best rates possible for their existing customers. They will examine old invoices for errors obtaining their clients refunds as well as credits.

                                                                                                                                                                                                                    

Services supplied can include:  
 

Dedicated professionals that will translate highly intricate program regulations and will certainly be offered to address your concerns, including:

Just how does the PPP lending variable into the ERC?

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

What are aggregation policies for larger, multi-state employers, and how do I analyze several states executive orders?

Just how do part-time, Union, and also tipped employees impact the quantity of my reimbursements?




Detailed assessment concerning your eligibility

Extensive analysis of your case

Support on the declaring procedure and documentation

Specific program competence that a routine certified public accountant or pay-roll processor might not be well-versed in

Fast and also smooth end-to-end process, from eligibility to asserting and getting refunds


 


 
Directory For Employee Retention Ertc Companies Available in Bayside 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/

Prepared To Start? Its Simple.
1. Whichever business you pick  to work with will certainly establish whether your company certifies for the ERC.

2. They will certainly assess your case as well as calculate the optimum quantity you can get.

3. Their group overviews you via the asserting procedure, from starting to finish, consisting of appropriate documentation.

Frequently Asked Questions (FAQs)

What duration does the program cover?

The program started on March 13th, 2020 and right on September 30, 2021, for eligible businesses.

You can make an application for reimbursements for 2020 as well as 2021 after December 31st of this year, right into 2022 and also 2023. As well as possibly past after that also.

Many companies have received reimbursements, as well as others, along with refunds, also qualified to continue getting ERC in every pay-roll they refine to December 31, 2021, at around 30% of their pay-roll cost.

Some services have actually obtained refunds from $100,000 to $6 million.
Do we still qualify if we currently took the PPP?

Yes. Under the Consolidated Appropriations Act, services can now receive the ERC even if they currently got a PPP financing. Keep in mind, however, that the ERC will only relate to wages not utilized for the PPP.

maintain a 20% decline in gross invoices .

A government authority called for partial or full shutdown of your business throughout 2020 or 2021. This includes your procedures being restricted by business, lack of ability to take a trip or restrictions of team meetings.

  • Gross receipt decrease standards is different for 2020 and 2021, yet is gauged versus the current quarter as compared to 2019 pre-COVID quantities:

    • A federal government authority needed complete or partial closure of your company during 2020 or 2021. This includes your procedures being restricted by business, failure to take a trip or limitations of team meetings.
    • Gross receipt reduction requirements is different for 2020 and 2021, but is determined against the existing quarter as compared to 2019 pre-COVID amounts.
Do we still certify if we remained open during the pandemic?

Yes. To certify, your organization needs to meet either among the following criteria:

  • Experienced a decline in gross receipts by 20%, or
  • Had to transform service procedures due to government orders

Numerous things are considered as changes in service operations, consisting of changes in work functions and the acquisition of additional safety equipment.