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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.
Since that's the stuff your CPA must worry about, I am not going to get into the intricacies of that form here or the Form 941 and all the payroll things. In this video I want to tell you what you need to know so you can go to your CPA and say, "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 circumstances, of your business's tax circumstance to generate more cash flow in your business and more wealth on your own.
Services provided can include:
Dedicated professionals that will analyze extremely complex program rules and will certainly be available to address your concerns, including:
What period does the program cover?
Brentwood NY Employee Retention Ertc Credit
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 Functions
This is huge, a lot of small company owners don't know about this, or they've found out about it, but they don't understand much about it, even lots of tax experts do not understand the ins and outs of this thing because it's brand-new and a lot of these modifications
that are helpful to entrepreneur 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 rewarding now in 2021, more rewarding, far more profitable, in truth now than it was in 2020, 5x more profitable a minimum of. So even if you don't own a company, make certain to share this video with company owner you know, this video could actually deserve tens of thousands of dollars for them. And if you are a company 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], tell me a little about your service and your ballpark year-over-year revenue, and let's see if we can get some more money back in your pocket since you can take this credit against your payroll taxes you pay by minimizing your required work 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. Since that's the stuff your CPA must worry about, I am not going to get into the intricacies of that form here or the Form 941 and all the payroll things. In this video I want to tell you what you need to know so you can go to your CPA and say, "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 circumstances, of your business's tax circumstance to generate more cash flow in your business and more wealth on your own.
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About Employee Retention Ertc Credit
Alright, now let's go into this and let's speak about the employee retention credit or the ERC as some folks like to call it, prior to I enter this, I wish to state that absolutely nothing in this video is to be taken as legal or tax advice, this video is for general informative purposes just, 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 company as such. Another disclaimer here, for purposes of this video I am assuming that if you're viewing this you are a small company owner, which for employee retention credit purposes implies one hundred or less employees for purposes of the 2020 credit and 5 hundred or less workers for purposes of the 2021 credit, if you have a company with over five hundred employees I envision you have in-house counsel, in-house CPAs who are on top of this things, but I'm here for you small company 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 federal government extended the tax due date to May 17 or volume is just the nature of their organization that your tax expert hasn't had the time to dig into the weeds here like I have.
So employee retention credit, why is it so lucrative for entrepreneur in 2021 and why weren't we talking about it in 2020, it's been around ever since, since the CARES Act? Why is it getting all this buzz now that it wasn't in 2015? Well, let's back it up. Yes, the employee retention credit has been around since the CARES Act that was passed over a year ago in March 2020, however 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. Originally, in 2020, if you got a PPP loan as a company, you were not qualified for the employee retention credit.
The stimulus costs passed in December, the Consolidated Appropriations Act, as well as the American Rescue Plan Act, passed in February 2021, made modifications to the ERC making it much more attractive. Generally the employee retention credit had a glow-up in 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 company owners in 2021. Why? Why is the employee retention credit more attractive now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act? I'll inform you why, a couple of factors.
Why Employee Retention Ertc Credit
Reason, 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 workers and after that turn around and declare the employee retention credit on those salaries also. The government doesn't look too fondly on paying your payroll for you through the PPP and then you declaring a credit against the taxes you pay the government on those wages that the federal government spent for you. That makes sense. Now, there's some preparation 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 select the very best covered duration that will get you complete PPP forgiveness however also maximize your employee retention credit.
For PPP forgiveness, you want to fill up that payroll pail with as numerous expenses as possible that do not count for employee retention credit functions. You can't claim the employee retention credit on state joblessness insurance contributions, but state unemployment insurance contributions count toward PPP forgiveness, see? So you 'd wish to dump 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 really technical very quickly and it's extremely circumstance particular in terms of enhancing PPP vs. ERC and my company has tools to figure this things out for you, I'm not going to dig into all that here, however feel in one's bones that you really need to do the mathematics 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 earnings you claimed the employee retention credit on, and that makes good sense also, why should the federal government offer you a reduction for these incomes that they already gave you a credit for? So basically the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I just like speaking about this things, but let's speak about another factor why the employee retention credit is more appealing now than it was last year, and that is that it's simpler to receive the employee retention credit in 2021. In 2020, for a quarter to certify for the employee retention credit, you needed to reveal a 50% reduction in gross invoices compared to the same calendar quarter in 2019.
In 2021, for a quarter to certify for the employee retention credit, you only need to reveal a 20% decline in gross receipts compared to the very same calendar quarter in 2019. So this indicates even more organizations will qualify. My service, for instance, experienced a 26% decrease in gross receipts, 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 first, since I got first round of PPP money and 2nd due to the fact that my service didn't suffer that large 50% decrease needed to get approved for the employee retention credit last year.But for 2021, at least for Q1, yeah, my service qualifies. Also, for 2021, for any quarter, you can elect to use the lookback quarter, implying that, for instance, even if your Q1 2021 gross receipts 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. Implication here is that if you certify for Q1 2021 based on Q1 2021's gross receipts, you will likewise receive Q2 2021 given that you qualified in the lookback quarter of Q1 2021.
Very same thing for Q2 to Q3 and Q3 to Q4, so basically if you just receive Q1 and Q3 2021, you also get approved for Q2 and Q4 based upon the lookback. Even if you didn't have an adequate decrease in income, you can certify for the employee retention credit if you were needed to totally or partially suspend operations in your organization throughout any calendar quarter in 2020 or 2021 due to state or federal orders, in which case you are qualified for the employee retention credit during that duration of complete or partial shutdown.
Common example, you own a dining establishment, and your guv signed an executive order specifying that you require to shut down indoor dining. That is an example of a partial shutdown. Also, not just are more companies qualified for the employee retention credit thanks to these brand-new laws, making PPP recipients qualified for the employee retention credit though not on the exact same earnings and making more services eligible through the 20% decrease threshold instead of the 50% decline limit, however the 2021 credit is also more profitable than the 2020 credit.
Not bad, however that's nothing compared to the 2021 credit due to the fact that for 2021, the credit is equal to 70% of qualified salaries per staff member paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in salaries per employee ... for that whole time period? For 2021 the portion is more (70% in 2021 vs. 50% in 2020) and you can take it on up to $10,000 in salaries per worker per quarter, so we're talking about an optimum credit of $7,000 per worker per quarter. That's right, folks, the optimum 2021 employee retention credit is $28,000 per worker.
If you got PPP and you are qualified for the employee retention credit, then when you do your PPP forgiveness application, you require to choose the finest covered period that will get you complete PPP forgiveness but likewise maximize your employee retention credit.
Alright, sorry for getting a little sidetracked there, I just like talking about this things, but 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 simpler to qualify 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 second due to the fact that my business didn't suffer that big 50% decrease needed to qualify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my business certifies. Not only are more services 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 same wages and making more services eligible through the 20% decrease limit rather than the 50% decline limit, but the 2021 credit is likewise more financially rewarding than the 2020 credit.
Not bad, however that's nothing compared to the 2021 credit since for 2021, the credit is equivalent to 70% of certified salaries per staff member paid from January 1, 2021 through December 31, 2021, limited to $10,000 in earnings per worker ... for that whole time period?
Exactly How to Begin
The best means is to work with a no-risk, contingency-based price savings firm. That will certainly bargain in support of their customers to obtain the very best costs feasible for their existing customers. They will audit old billings for mistakes obtaining for their clients reimbursements and credits. They can enhance the profitability as well as general appraisal of their clients organizations.
Services provided can include:
Dedicated professionals that will analyze extremely complex program rules and will certainly be available to address your concerns, including:
How does the PPP finance aspect right into the ERC?
What are the differences between the 2020 as well as 2021 programs and also just how does it put on your service?
What are aggregation regulations for bigger, multi-state companies, and just how do I translate multiple states executive orders?
How do part-time, Union, and tipped staff members affect the amount of my refunds?
Thorough examination regarding your eligibility
Thorough analysis of your situation
Advice on the claiming process and paperwork
Particular program experience that a regular certified public accountant or payroll cpu could not be well-versed in
Rapid and smooth end-to-end process, from qualification to claiming 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/ |
Ready To Start? Its Simple.
1. Whichever business you pick to work with will figure out whether your organization certifies and gets approvel for the ERC.
2. They will analyze your claim as well as compute the maximum quantity you can obtain.
3. Their team guides you with the claiming procedure, from beginning to finish, including proper documents.
Frequently Asked Questions (FAQs)
What period does the program cover?
The program started on March 13th, 2020 and also right on September 30, 2021, for qualified employers.
You can get reimbursements for 2020 and also 2021 after December 31st of this year, into 2022 as well as 2023. And also possibly past then too.
Many companies have received reimbursements, and also others, in enhancement to refunds, also qualified to proceed receiving ERC in every pay-roll they refine through December 31, 2021, at about 30% of their pay-roll cost.
Some organizations have actually obtained reimbursements from $100,000 to $6 million.
Do we still certify if we currently took the PPP?
Yes. Under the Consolidated Appropriations Act, companies can currently qualify for the ERC even if they currently got a PPP financing. Note, however, that the ERC will only apply to incomes not made use of for the PPP.
maintain a 20% decline in gross billings .
A federal government authority called for complete or partial shutdown of your service during 2020 or 2021. This includes your operations being limited by business, inability to take a trip or limitations of team meetings.
- Gross receipt decrease standards is different for 2020 and also 2021, yet is determined versus the current quarter as compared to 2019 pre-COVID quantities:
- A federal government authority needed full or partial shutdown of your organization during 2020 or 2021. This includes your procedures being limited by commerce, failure to travel or constraints of group conferences.
- Gross invoice reduction requirements is various for 2020 as well as 2021, yet is gauged against the present quarter as contrasted to 2019 pre-COVID amounts.
Do we still certify if we stayed open throughout the pandemic?
Yes. To qualify, your company should satisfy either one of the adhering to standards:
- Experienced a decline in gross receipts by 20%, or
- Had to change company procedures due to government orders
Lots of items are considered as modifications in service operations, including changes in work duties as well as the purchase of added safety devices.