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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 form here or the Form 941 and all the payroll stuff because that's the stuff your CPA ought to fret about. In this video I desire 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 have not you told me about this?" so you can be notified and take ownership of your own tax scenarios, of your organization's tax scenario to generate more capital in your service and more wealth for yourself.
Solutions offered can include:
Devoted experts that will certainly analyze very intricate program regulations as well as will certainly be offered to answer your concerns, including:
What period does the program cover?
Cheektowaga 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.
Exactly How It Works
This is huge, a great deal of small company owners don't learn about this, or they've found out about it, but they do not know much about it, even many tax professionals do not know the ins and outs of this thing because it's new and a lot of these changes
that are advantageous to business owners took place in the middle of tax season. So in this video I'm going to go into the employee retention credit, why it's so profitable now in 2021, more profitable, even more lucrative, in reality now than it remained in 2020, 5x more profitable a minimum of. So even if you don't own an organization, be sure to share this video with company owner you understand, this video could literally deserve tens of thousands of dollars for them. And if you are an entrepreneur and after you view this video you want 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 email, [email protected], tell 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 against your payroll taxes you pay by decreasing your required employment tax deposits or you can ask for an advance payment of the credit utilizing IRS Form 7200, Advance Payment of Employer Credits Due to COVID-19. I am not going to get into the intricacies of that form here or the Form 941 and all the payroll stuff because that's the stuff your CPA ought to fret about. In this video I desire 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 have not you told me about this?" so you can be notified and take ownership of your own tax scenarios, of your organization's tax scenario to generate more capital 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, prior to I get into this, I desire to state that absolutely nothing in this video is to be taken as legal or tax guidance, this video is for basic educational functions only, yes, I am a tax and a cpa expert, however I am not your CPA nor your tax expert unless you have actually engaged my company. Another disclaimer here, for purposes of this video I am presuming that if you're seeing this you are a small business owner, which for employee retention credit functions suggests one hundred or less staff members for functions of the 2020 credit and five hundred or less staff members for purposes of the 2021 credit, if you have a business with over five hundred staff members I imagine you have in-house counsel, in-house CPAs who are on top of this stuff, but I'm here for you small company owners who might work with a local tax specialist who is so neck-deep in income tax return right now because the government extended the tax deadline to May 17 or volume is simply the nature of their company that your tax specialist hasn't had the time to dig into the weeds here like I have.
Employee retention credit, why is it so lucrative for company owners in 2021 and why weren't we talking about it in 2020, it's been around because then, because 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 given 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. Originally, in 2020, if you got a PPP loan as an employer, you were not eligible for the employee retention credit.
Basically the employee retention credit had a glow-up in between 2020 and 2021, it went from the unpopular lady with neglected eyebrows and thick glasses and her hair up in 2020 to the belle of the ball for company 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 2021
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 claim the employee retention credit on those wages. The federal government does not look too fondly on paying your payroll for you through the PPP and after that you declaring a credit against the taxes you pay the government on those incomes that the government spent for you. So that makes good sense. Now, there's some preparation here. If you got PPP and you are eligible for the employee retention credit, then when you do your PPP forgiveness application, you need to pick the very best covered period that will get you full PPP forgiveness but likewise optimize your employee retention credit.
For PPP forgiveness, you want to fill up that payroll pail with as lots of expenses as possible that don't count for employee retention credit purposes. For example, you can't claim the employee retention credit on state joblessness insurance coverage contributions, however state joblessness insurance contributions count toward PPP forgiveness, see? You 'd want to dispose all your state unemployment insurance coverage contributions on your PPP forgiveness application to leave as much common earnings as possible to take the employee retention credit on.
So this can get very technical very quickly and it's really scenario particular in terms of enhancing PPP vs. ERC and my company has tools to figure this stuff out for you, I'm not going to dig into all that here, but feel in one's bones that you truly 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 subtract the incomes you claimed the employee retention credit on, and that makes good sense too, why should the government provide you a deduction for these wages that they currently offered you a credit for? Essentially the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I simply love discussing this things, but let's talk about another reason why the employee retention credit is more attractive now than it was in 2015, and that is that it's easier to get approved for the employee retention credit in 2021. In 2020, for a quarter to get approved for the employee retention credit, you had to reveal a 50% decrease in gross receipts compared to the very same calendar quarter in 2019.
However in 2021, for a quarter to get approved for the employee retention credit, you just need to show a 20% reduction in gross invoices compared to the exact same calendar quarter in 2019. So this indicates much more businesses will certify. My company, for example, experienced a 26% decrease in gross invoices, comparing Q1 2019 to Q1 2021, and it was a similar story in 2015 too.
I didn't certify for the 2020 employee retention credit first, since I got first round of PPP money and second since my company didn't suffer that large 50% decrease required to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my service qualifies. Likewise, for 2021, for any quarter, you can choose to utilize the lookback quarter, meaning that, for instance, even if your Q1 2021 gross receipts aren't a minimum of 20% lower than your Q1 2019 gross invoices, you can compare for functions 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 receipts, you will also receive Q2 2021 since you certified in the lookback quarter of Q1 2021.
Very same thing for Q2 to Q3 and Q3 to Q4, so generally if you just certify for Q1 and Q3 2021, you also certify for Q2 and Q4 based upon the lookback. Likewise, even if you didn't have an adequate decrease in profits, you can receive the employee retention credit if you were required to fully or partly 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 complete shutdown.
Common example, you own a restaurant, and your governor signed an executive order stating that you need to close down indoor dining. That is an example of a partial shutdown. Not only are more businesses qualified for the employee retention credit thanks to these new laws, making PPP recipients eligible for the employee retention credit though not on the exact same salaries and making more services eligible through the 20% decrease threshold rather than the 50% decline limit, but the 2021 credit is likewise 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 equal to 70% of certified salaries per staff member paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in salaries per staff member ... for that whole time duration? For 2021 the percentage is more (70% in 2021 vs. 50% in 2020) and you can take it on up to $10,000 in wages per staff member 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 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 however also optimize 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 certify for the 2020 employee retention credit first, because I got first round of PPP money and 2nd because my company didn't suffer that large 50% decrease needed to qualify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my organization qualifies. Not just are more businesses qualified for the employee retention credit thanks to these brand-new laws, making PPP receivers eligible for the employee retention credit though not on the same incomes and making more services eligible through the 20% decrease threshold rather than the 50% decline limit, however the 2021 credit is also more lucrative than the 2020 credit.
Not bad, however that's absolutely nothing compared to the 2021 credit due to the fact that for 2021, the credit is equivalent to 70% of qualified earnings per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in salaries per worker ... for that entire time period?
Exactly How to Start
That will certainly bargain on part of their clients to obtain the best costs possible for their existing clients. They will investigate old invoices for errors getting their clients reimbursements and also tax credits.
Solutions offered can include:
Devoted experts that will certainly analyze very intricate program regulations as well as will certainly be offered to answer your concerns, including:
Exactly how does the PPP financing element right into the ERC?
What are the differences between the 2020 as well as 2021 programs as well as exactly how does it put on your organization?
What are gathering rules for larger, multi-state companies, as well as exactly how do I analyze numerous states executive orders?
Just how do part-time, Union, and also tipped employees affect the quantity of my reimbursements?
Comprehensive examination regarding your eligibility
Comprehensive analysis of your situation
Support on the declaring process and also paperwork
Specific program experience that a normal CPA or pay-roll cpu may not be well-versed in
Quick and also smooth end-to-end procedure, from eligibility to claiming as well as getting refunds
| 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 Get Begun? Its Simple.
1. Whichever firm you select to work with will establish whether your organization qualifies for the ERC.
2. They will certainly analyze your request as well as calculate the maximum quantity you can obtain.
3. Their group overviews you via the asserting procedure, from beginning to end, consisting of proper documentation.
Frequently Asked Questions (FAQs)
What period does the program cover?
The program started on March 13th, 2020 as well as right on September 30, 2021, for eligible employers.
You can look for refunds for 2020 and 2021 after December 31st of this year, right into 2022 and also 2023. As well as potentially past then too.
Many businesses have received refunds, and also others, along with refunds, also qualified to proceed obtaining ERC in every pay-roll they process through December 31, 2021, at close to 30% of their payroll cost.
Some organizations have actually received reimbursements from $100,000 to $6 million.
Do we still certify if we already took the PPP?
Yes. Under the Consolidated Appropriations Act, companies can now get approved for the ERC even if they already got a PPP car loan. Keep in mind, though, that the ERC will only relate to incomes not utilized for the PPP.
Do we still certify if we did not incur a 20% decline in gross invoices .
A federal government authority required full or partial closure of your company during 2020 or 2021. This includes your operations being restricted by business, inability to take a trip or restrictions of group conferences.
- Gross invoice decrease criteria is various for 2020 as well as 2021, yet is measured versus the present quarter as contrasted to 2019 pre-COVID quantities:
- A federal government authority required partial or complete shutdown of your organization during 2020 or 2021. This includes your procedures being restricted by business, failure to travel or restrictions of group conferences.
- Gross receipt decrease standards is different for 2020 as well as 2021, however is measured against the existing quarter as compared to 2019 pre-COVID quantities.
Do we still qualify if we remained open throughout the pandemic?
Yes. To qualify, your company must satisfy either among the following requirements:
- Experienced a decline in gross receipts by 20%, or
- Needed to alter business procedures as a result of government orders
Numerous things are thought about as adjustments in business procedures, consisting of changes in job duties as well as the acquisition of extra safety devices.