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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 things your CPA must 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 want 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?" You can be notified and take ownership of your own tax circumstances, of your service's tax circumstance to produce more money circulation in your business and more wealth for yourself.
Solutions supplied can include:
Devoted professionals that will certainly analyze very complicated program rules and will be available to answer your questions, including:
What period does the program cover?
Clarkstown NY Employee Retention 2020 Ertc Qualifications
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 great deal of small company owners do not understand about this, or they've found out about it, however they do not know much about it, even many tax professionals do not know the ins and outs of this thing because it's brand-new and a great deal of these modifications
that are useful to company owner took place in the middle of tax season. In this video I'm going to dig into the employee retention credit, why it's so lucrative now in 2021, more profitable, far more lucrative, in fact now than it was in 2020, 5x more financially rewarding at least. So even if you do not own a service, make sure 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 an entrepreneur and after you watch 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 revenue, 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 versus your payroll taxes you pay by decreasing your needed 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 things your CPA must 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 want 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?" You can be notified and take ownership of your own tax circumstances, of your service's tax circumstance to produce more money circulation in your business and more wealth for yourself.
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About Employee Retention 2020 Ertc Qualifications
Alright, now let's dig into this and let's discuss the employee retention credit or the ERC as some folks like to call it, before I enter this, I wish to state that nothing in this video is to be taken as legal or tax guidance, this video is for basic informational purposes just, yes, I am a CPA and a tax expert, however I am not your CPA nor your tax professional unless you have engaged my company as such. 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 indicates one hundred or less staff members for purposes of the 2020 credit and five hundred or less staff members for purposes of the 2021 credit, if you have a company with over five hundred employees I imagine 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 deal with a regional tax expert who is so neck-deep in tax returns right now due to the fact that the government extended the tax due date to May 17 or volume is just the nature of their company 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 profitable for service owners in 2021 and why weren't we talking about it in 2020, it's been around considering that then, because the CARES Act? Yes, the employee retention credit has actually 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 because of the PPP, the Paycheck Protection Program.
Essentially the employee retention credit had a glow-up in between 2020 and 2021, it went from the nerdy girl with unkempt eyebrows and thick glasses and her hair up in 2020 to the belle of the ball for organization 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 2020 Ertc Qualifications
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 claim the employee retention credit on those wages. The government doesn't look too fondly on paying your payroll for you through the PPP and then you declaring a credit versus the taxes you pay the government on those wages that the government spent for you. So that makes good 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 require to pick the best covered duration that will get you full PPP forgiveness but also optimize your employee retention credit.
For PPP forgiveness, you want to fill up that payroll container with as numerous costs as possible that don't count for employee retention credit functions. For example, you can't declare the employee retention credit on state unemployment insurance coverage contributions, however state joblessness insurance contributions count towards PPP forgiveness, see? So you 'd wish to discard all your state unemployment insurance contributions on your PPP forgiveness application to leave as much common incomes as possible to take the employee retention credit on.
Another thing to note is you can't deduct the wages you claimed the employee retention credit on, and that makes sense as well, why should the federal government give you a reduction for these incomes that they already provided you a credit for? Alright, sorry for getting a little sidetracked there, I simply enjoy talking about this stuff, 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 much easier to qualify for the employee retention credit in 2021.
But in 2021, for a quarter to get approved for the employee retention credit, you only require to show a 20% decrease in gross receipts compared to the exact same calendar quarter in 2019. This suggests far more services 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.
So I didn't get approved for the 2020 employee retention credit initially, due to the fact that I got first round of PPP cash and 2nd due to the fact that my business didn't suffer that big 50% decrease required to qualify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my business qualifies. For 2021, for any quarter, you can elect to utilize the lookback quarter, meaning that, for example, even if your Q1 2021 gross receipts aren't at least 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 qualify for Q1 2021 based upon Q1 2021's gross receipts, you will also receive 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 basically if you simply get approved for Q1 and Q3 2021, you likewise get approved for Q2 and Q4 based on the lookback. Also, even if you didn't have an enough decrease in revenue, you can certify for the employee retention credit if you were needed to completely or partly suspend operations in your organization throughout 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 full or partial shutdown.
Typical example, you own a dining establishment, and your governor signed an executive order stating that you need to shut down indoor dining. That is an example of a partial shutdown. Also, not only are more services eligible for the employee retention credit thanks to these new laws, making PPP receivers eligible for the employee retention credit though not on the same earnings and making more organizations eligible through the 20% decline limit rather than the 50% decrease limit, however the 2021 credit is likewise more financially rewarding than the 2020 credit.
This is since for 2020, the employee retention credit amounted to 50% of all certified earnings for 2020, the employee retention credit amounted to 50% of all certified incomes you paid staff members in between March 12, 2020, and December 31, 2020, with a limitation of $10,000 in wages for that entire time period. The optimum 2020 credit per staff member was $5,000. Okay, however that's absolutely nothing compared to the 2021 credit because for 2021, the credit is equal to 70% of certified earnings per worker paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in earnings per staff member ... for that entire period? No. Per quarter. 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 staff member per quarter, so we're talking about a maximum credit of $7,000 per employee per quarter. If you're qualified all 4 quarters, $7,000 times four is $28,000. That's right, folks, the maximum 2021 employee retention credit is $28,000 per staff member. That's big. That's a blessing to lots of business owners right now. So you see what I imply now, right, how the employee retention credit has gone from ugly duckling in 2020 to gorgeous swan in 2021, right? And by the method, by the method, qualified incomes includes employer-paid medical 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 best covered duration that will get you complete PPP forgiveness but likewise maximize your employee retention credit.
Alright, sorry for getting a little sidetracked there, I simply like talking about this stuff, 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 simpler to qualify for the employee retention credit in 2021. I didn't certify for the 2020 employee retention credit initially, due to the fact that I got first round of PPP cash and second because my business didn't suffer that big 50% decline needed to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my organization certifies. Not just are more organizations eligible for the employee retention credit thanks to these brand-new laws, making PPP receivers eligible for the employee retention credit though not on the exact same earnings and making more services eligible through the 20% decrease limit rather than the 50% decrease limit, however the 2021 credit is also more financially rewarding 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 qualified earnings per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in earnings per worker ... for that whole time duration?
Exactly How to Begin
That will bargain on part of their customers to get the ideal prices feasible for their existing clients. They will certainly audit old billings for mistakes getting their clients reimbursements and credits.
Solutions supplied can include:
Devoted professionals that will certainly analyze very complicated program rules and will be available to answer your questions, including:
How does the PPP loan element into the ERC?
What are the differences in between the 2020 and 2021 programs as well as exactly how does it put on your company?
What are gathering policies for larger, multi-state employers, and also how do I translate multiple states executive orders?
How do part-time, Union, and also tipped workers affect the amount of my refunds?
Complete assessment regarding your eligibility
Thorough analysis of your case
Advice on the declaring procedure as well as paperwork
Details program expertise that a routine certified public accountant or pay-roll processor could not be well-versed in
Smooth as well as quick end-to-end process, from eligibility to declaring as well as 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 Start? Its Simple.
1. Whichever business you pick to work with will identify whether your company certifies for the ERC.
2. They will certainly assess your request and also calculate the optimum quantity you can obtain.
3. Their group overviews you with the claiming process, from beginning to end, including correct paperwork.
Frequently Asked Questions (FAQs)
What period does the program cover?
The program began on March 13th, 2020 and right on September 30, 2021, for qualified organizations.
You can obtain reimbursements for 2020 and 2021 after December 31st of this year, into 2022 and 2023. And possibly beyond then also.
Many companies have received reimbursements, and others, along with refunds, likewise certified to continue obtaining ERC in every payroll they refine to December 31, 2021, at about 30% of their pay-roll expense.
Some businesses have actually obtained refunds from $100,000 to $6 million.
Do we still certify if we already took the PPP?
Yes. Under the Consolidated Appropriations Act, organizations can now qualify for the ERC also if they currently got a PPP finance. Keep in mind, however, that the ERC will only put on salaries not used for the PPP.
maintain a 20% decrease in gross receipts .
A federal government authority required complete or partial closure of your service throughout 2020 or 2021. This includes your operations being limited by business, lack of ability to travel or constraints of group conferences.
- Gross receipt decrease standards is different for 2020 and also 2021, however is measured against the present quarter as contrasted to 2019 pre-COVID quantities:
- A federal government authority needed partial or full shutdown of your service throughout 2020 or 2021. This includes your procedures being limited by commerce, failure to travel or limitations of team meetings.
- Gross receipt decrease standards is various for 2020 and also 2021, yet is determined against the present quarter as compared to 2019 pre-COVID quantities.
Do we still qualify if we remained open during the pandemic?
Yes. To qualify, your company has to satisfy either one of the complying with criteria:
- Experienced a decrease in gross invoices by 20%, or
- Had to transform organization operations due to government orders
Numerous things are considered as changes in service operations, including changes in task duties and also the purchase of additional protective equipment.