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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 should stress about, I am not going to get into the complexities of that type here or the Form 941 and all the payroll things. In this video I wish to inform you what you require to know so you can go to your CPA and state, "Hey, what about this employee retention credit, why haven't you informed me about this?" You can be notified and take ownership of your own tax circumstances, of your organization's tax circumstance to create more money flow in your business and more wealth for yourself.
Services provided can include:
Dedicated experts that will analyze highly complicated program guidelines and will be offered to address your questions, including:
What duration does the program cover?
Clarkstown NY Employee Retention Credit For Self Employed
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 Functions
This is huge, a lot of small company owners do not learn about this, or they've found out about it, however they don't know much about it, even many tax specialists do not understand the ins and outs of this thing since it's brand-new and a great deal of these changes
that are advantageous 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 financially rewarding, far more rewarding, in reality now than it was in 2020, 5x more lucrative at least. Even if you do not own a business, be sure to share this video with business owners you understand, this video might actually be worth 10s of thousands of dollars for them. And if you are an entrepreneur and after you enjoy this video you wish 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 business and your ballpark year-over-year profits, 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 minimizing your needed 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 things your CPA should stress about, I am not going to get into the complexities of that type here or the Form 941 and all the payroll things. In this video I wish to inform you what you require to know so you can go to your CPA and state, "Hey, what about this employee retention credit, why haven't you informed me about this?" You can be notified and take ownership of your own tax circumstances, of your organization's tax circumstance to create more money flow in your business and more wealth for yourself.
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About Employee Retention Credit For Self Employed
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 suggestions, this video is for basic informational purposes just, yes, I am a CPA and a tax professional, but I am not your CPA nor your tax expert unless you have actually engaged my company as such. Another disclaimer here, for purposes of this video I am presuming that if you're viewing this you are a little company owner, which for employee retention credit functions indicates one hundred or less employees for purposes of the 2020 credit and five hundred or fewer workers for purposes of the 2021 credit, if you have a business with over 5 hundred staff members I envision 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 may deal with a regional tax expert who is so neck-deep in tax returns today since the federal government extended the tax due date to May 17 or volume is simply the nature of their business that your tax professional hasn't had the time to go into the weeds here like I have.
Employee retention credit, why is it so rewarding for service owners in 2021 and why weren't we talking about it in 2020, it's been around considering that then, given that 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 actually been around given 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 because of the PPP, the Paycheck Protection Program. Initially, in 2020, if you received a PPP loan as a company, you were not eligible for the employee retention credit.
The stimulus expense 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 unkempt eyebrows and thick glasses 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 appealing now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act? I'll tell you why, a few factors.
Why Employee Retention Credit For Self Employed
Factor, the employee retention credit for both 2020 and 2021 is now offered 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 incomes. If you got PPP and you are eligible for the employee retention credit, then when you do your PPP forgiveness application, you require to choose the finest covered duration that will get you complete PPP forgiveness however also optimize your employee retention credit.
Also, for PPP forgiveness, you desire to fill up that payroll container with as numerous expenses as possible that do not count for employee retention credit functions. For instance, you can't claim the employee retention credit on state joblessness insurance coverage contributions, but state joblessness insurance contributions count towards PPP forgiveness, see? So you 'd desire to discard all your state joblessness insurance contributions on your PPP forgiveness application to leave as much common earnings as possible to take the employee retention credit on.
Another thing to note is you can't deduct the incomes you claimed the employee retention credit on, and that makes sense as well, why should the federal government give you a deduction for these wages that they already gave you a credit for? Alright, sorry for getting a little sidetracked there, I just love talking about this things, but let's talk about another factor 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.
However in 2021, for a quarter to certify for the employee retention credit, you only need to show a 20% reduction in gross receipts compared to the exact same calendar quarter in 2019. So this means far more businesses will qualify. My company, for example, experienced a 26% decrease in gross receipts, comparing Q1 2019 to Q1 2021, and it was a comparable story last year too.
So I didn't receive the 2020 employee retention credit initially, because I got preliminary of PPP money and second since my business didn't suffer that big 50% decline needed to qualify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my service certifies. For 2021, for any quarter, you can elect to use the lookback quarter, meaning that, for example, even if your Q1 2021 gross invoices aren't at least 20% lower than your Q1 2019 gross receipts, you can compare for functions 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 get approved for Q1 2021 based on Q1 2021's gross receipts, you will also qualify for Q2 2021 considering that you qualified in the lookback quarter of Q1 2021.
Exact same thing for Q2 to Q3 and Q3 to Q4, so essentially if you just get approved for Q1 and Q3 2021, you also receive Q2 and Q4 based on the lookback. Also, even if you didn't have an enough decrease in profits, you can receive the employee retention credit if you were needed to totally or partly suspend operations in your service 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 partial or full shutdown.
Common example, you own a dining establishment, and your guv signed an executive order stating that you need to shut down indoor dining. That is an example of a partial shutdown. Likewise, not just are more businesses eligible for the employee retention credit thanks to these new laws, making PPP receivers eligible for the employee retention credit though not on the very same wages and making more organizations eligible through the 20% decrease limit rather than the 50% decrease threshold, but the 2021 credit is also more financially rewarding than the 2020 credit.
Not bad, however that's absolutely nothing compared to the 2021 credit because for 2021, the credit is equal to 70% of qualified incomes per staff member paid from January 1, 2021 through December 31, 2021, limited to $10,000 in salaries per worker ... 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 incomes per employee per quarter, so we're talking about a maximum credit of $7,000 per employee per quarter. That's right, folks, the optimum 2021 employee retention credit is $28,000 per worker.
If you got PPP and you are eligible for the employee retention credit, then when you do your PPP forgiveness application, you require to choose the best covered period that will get you complete PPP forgiveness but also maximize your employee retention credit.
Alright, sorry for getting a little sidetracked there, I simply love talking about this stuff, but let's talk about another factor 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 qualify for the 2020 employee retention credit initially, because I got first round of PPP money and second because my organization 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 only are more organizations qualified for the employee retention credit thanks to these new laws, making PPP receivers eligible for the employee retention credit though not on the exact same wages and making more organizations eligible through the 20% decline threshold rather than the 50% decline limit, but the 2021 credit is also more financially rewarding than the 2020 credit.
Not bad, however that's nothing compared to the 2021 credit because for 2021, the credit is equal to 70% of certified incomes per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per worker ... for that whole time duration?
Exactly How to Get going
That will certainly work out on behalf of their customers to get the ideal prices possible for their existing clients. They will investigate old invoices for errors getting their customers refunds and also tax credits.
Services provided can include:
Dedicated experts that will analyze highly complicated program guidelines and will be offered to address your questions, including:
How does the PPP lending aspect into the ERC?
What are the distinctions between the 2020 as well as 2021 programs and also just how does it apply to your company?
What are gathering regulations for larger, multi-state employers, and also just how do I translate several states executive orders?
How do part-time, Union, and also tipped staff members influence the amount of my refunds?
Complete assessment regarding your eligibility
Thorough analysis of your case
Advice on the claiming process as well as documents
Certain program expertise that a normal CPA or pay-roll processor could not be well-versed in
Smooth and fast end-to-end process, from eligibility to claiming and receiving reimbursements
| 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 Get Going? Its Simple.
1. Whichever company you choose to work with will identify whether your business qualifies for the ERC.
2. They will evaluate your request and calculate the maximum amount you can receive.
3. Their group overviews you via the asserting procedure, from starting to end, including correct documentation.
Frequently Asked Questions (FAQs)
What duration does the program cover?
The program began on March 13th, 2020 and also right on September 30, 2021, for eligible companies.
You can request reimbursements for 2020 as well as 2021 after December 31st of this year, into 2022 as well as 2023. As well as possibly past then as well.
Many companies have received reimbursements, as well as others, in enhancement to reimbursements, also qualified to continue receiving ERC in every pay-roll they process through December 31, 2021, at about 30% of their payroll cost.
Some services have actually gotten refunds from $100,000 to $6 million.
Do we still certify if we already took the PPP?
Yes. Under the Consolidated Appropriations Act, services can currently get the ERC even if they already obtained a PPP car loan. Keep in mind, though, that the ERC will just apply to incomes not made use of for the PPP.
Do we still qualify if we did not sustain a 20% reduction in gross invoices .
A government authority called for partial or complete shutdown of your company during 2020 or 2021. This includes your operations being limited by commerce, lack of ability to travel or restrictions of group meetings.
- Gross invoice reduction standards is various for 2020 and also 2021, yet is gauged versus the current quarter as compared to 2019 pre-COVID amounts:
- A federal government authority needed complete or partial closure of your company throughout 2020 or 2021. This includes your procedures being limited by business, inability to take a trip or constraints of team meetings.
- Gross receipt reduction standards is various for 2020 as well as 2021, but is measured versus the existing quarter as contrasted to 2019 pre-COVID quantities.
Do we still qualify if we remained open during the pandemic?
Yes. To certify, your company must satisfy either one of the complying with standards:
- Experienced a decline in gross receipts by 20%, or
- Needed to change business operations due to government orders
Several products are thought about as adjustments in company operations, including changes in job roles as well as the purchase of added safety equipment.