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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 need to fret 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 inform you what you need to understand so you can go to your CPA and say, "Hey, what about this employee retention credit, why haven't you told me about this?" so you can be informed and take ownership of your own tax situations, of your business's tax circumstance to generate more cash flow in your business and more wealth for yourself.
Solutions offered can include:
Devoted specialists that will certainly translate very intricate program rules and also will be offered to answer your questions, including:
What period does the program cover?
Forest Hills NY Employee Retention Specialists
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 Works
This is huge, a great deal of small business owners do not learn about this, or they've heard about it, however they don't understand much about it, even many tax professionals don't understand the ins and outs of this thing due to the fact that it's new and a great deal of these changes
that are advantageous to business owners occurred in the middle of tax season. In this video I'm going to dig into the employee retention credit, why it's so rewarding now in 2021, more profitable, far more financially rewarding, in reality now than it was in 2020, 5x more rewarding at least. So even if you do not own an organization, make sure to share this video with service owners you know, this video might actually deserve 10s of thousands of dollars for them. And if you are a company owner and after you see 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], inform me a little about your company and your ballpark year-over-year income, 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 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. Since that's the things your CPA need to fret 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 inform you what you need to understand so you can go to your CPA and say, "Hey, what about this employee retention credit, why haven't you told me about this?" so you can be informed and take ownership of your own tax situations, of your business's tax circumstance to generate more cash flow in your business and more wealth for yourself.
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About Employee Retention Specialists
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 want to say that nothing in this video is to be taken as legal or tax advice, this video is for basic educational purposes only, yes, I am a CPA and a tax expert, however I am not your CPA nor your tax professional unless you have actually 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 suggests one hundred or fewer staff members for purposes of the 2020 credit and 5 hundred or fewer staff members for purposes of the 2021 credit, if you have a business with over 5 hundred workers I picture 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 might deal with a local tax expert who is so neck-deep in tax returns right now due to the fact that the federal government extended the tax due date to May 17 or volume is simply the nature of their business that your tax specialist hasn't had the time to go into the weeds here like I have.
So employee retention credit, why is it so lucrative for company owner in 2021 and why weren't we talking about it in 2020, it's been around considering that then, 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 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 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.
But the stimulus costs passed in December, the Consolidated Appropriations Act, in addition to the American Rescue Plan Act, passed in February 2021, made modifications to the ERC making it far more attractive. Basically the employee retention credit had a glow-up between 2020 and 2021, it went from the nerdy woman with thick glasses and unkempt eyebrows and her hair up in 2020 to the belle of the ball for organization 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 tell you why, a few factors.
Why Employee Retention Specialists
Reason, the employee retention credit for both 2020 and 2021 is now readily available to PPP recipients, 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 qualified for the employee retention credit, then when you do your PPP forgiveness application, you require to select the finest covered period that will get you complete PPP forgiveness however likewise optimize your employee retention credit.
For PPP forgiveness, you want to fill up that payroll container with as numerous costs as possible that do not count for employee retention credit purposes. For instance, you can't claim the employee retention credit on state joblessness insurance coverage contributions, but state joblessness insurance contributions count toward PPP forgiveness, see? You 'd desire to dump all your state unemployment insurance contributions on your PPP forgiveness application to leave as much ordinary incomes as possible to take the employee retention credit on.
So this can get really technical very fast and it's very situation 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 go into all that here, but feel in one's bones that you really need 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 earnings you declared the employee retention credit on, which makes good sense too, why should the federal government give you a reduction for these salaries that they already provided you a credit for? So basically the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I just love talking about this things, but let's talk about another reason that the employee retention credit is more appealing now than it was last year, which 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 needed to reveal a 50% reduction in gross invoices compared to the exact same calendar quarter in 2019.
However in 2021, for a quarter to get approved for the employee retention credit, you only require to show a 20% decrease in gross invoices compared to the same calendar quarter in 2019. This implies far more services will certify. My organization, for example, experienced a 26% decline in gross invoices, 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 first, since I got very first round of PPP cash and 2nd due to the fact that my company didn't suffer that large 50% decrease required to get approved for the employee retention credit last year.But for 2021, a minimum of for Q1, yeah, my company certifies. Also, for 2021, for any quarter, you can elect to utilize the lookback quarter, meaning that, for example, even if your Q1 2021 gross invoices aren't a minimum of 20% lower than your Q1 2019 gross invoices, you can compare for functions of figuring out 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 certified in the lookback quarter of Q1 2021.
Same thing for Q2 to Q3 and Q3 to Q4, so generally if you just receive Q1 and Q3 2021, you also certify for Q2 and Q4 based on the lookback. Even if you didn't have an adequate decrease in profits, you can certify for the employee retention credit if you were required to fully or partly suspend operations in your business 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 throughout that period of complete or partial shutdown.
Common example, you own a dining establishment, and your governor signed an executive order mentioning that you require to shut down indoor dining. That is an example of a partial shutdown. Likewise, not only are more companies eligible for the employee retention credit thanks to these new laws, making PPP recipients eligible for the employee retention credit though not on the same wages and making more businesses eligible through the 20% decline limit instead of the 50% decrease limit, but the 2021 credit is likewise more financially rewarding than the 2020 credit.
Not bad, however that's absolutely nothing compared to the 2021 credit since for 2021, the credit is equivalent to 70% of certified wages per staff member paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per staff member ... 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 wages per worker per quarter, so we're talking about an optimum credit of $7,000 per employee per quarter. That's right, folks, the maximum 2021 employee retention credit is $28,000 per staff member.
If you got PPP and you are qualified for the employee retention credit, then when you do your PPP forgiveness application, you need to pick the finest 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 love talking about this stuff, but let's talk about another reason why the employee retention credit is more appealing now than it was last year, and that is that it's easier to qualify for the employee retention credit in 2021. I didn't qualify for the 2020 employee retention credit first, because I got very first round of PPP money and second due to the fact that my service 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 service qualifies. Not only are more services qualified for the employee retention credit thanks to these new laws, making PPP recipients qualified for the employee retention credit though not on the exact same wages and making more businesses eligible through the 20% decline threshold rather than the 50% decline threshold, however the 2021 credit is likewise more profitable than the 2020 credit.
Not bad, however that's absolutely nothing compared to the 2021 credit since for 2021, the credit is equivalent to 70% of certified earnings per worker paid from January 1, 2021 through December 31, 2021, limited to $10,000 in salaries per staff member ... for that entire time period?
Exactly How to Get going
The most effective means is to deal with a no-risk, contingency-based price savings firm. That will certainly bargain in behalf of their customers to obtain the very best rates feasible for their existing customers. They will certainly audit old invoices for errors obtaining for their customers refunds and also tax credits. They can increase the earnings as well as general valuation of their customers companies.
Solutions offered can include:
Devoted specialists that will certainly translate very intricate program rules and also will be offered to answer your questions, including:
Just how does the PPP finance variable into the ERC?
What are the distinctions between the 2020 and also 2021 programs as well as exactly how does it apply to your organization?
What are aggregation policies for larger, multi-state employers, and just how do I analyze several states executive orders?
Just how do part-time, Union, and also tipped staff members influence the quantity of my reimbursements?
Comprehensive assessment concerning your eligibility
Comprehensive analysis of your case
Assistance on the asserting process as well as documentation
Particular program proficiency that a routine CPA or payroll processor may not be well-versed in
Smooth and also rapid end-to-end procedure, from qualification to claiming and also 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 firm you pick to work with will certainly determine whether your organization certifies and gets approvel for the ERC.
2. They will certainly assess your request and also calculate the optimum amount you can get.
3. Their group overviews you with the claiming process, from beginning to finish, including correct documentation.
Frequently Asked Questions (FAQs)
What period does the program cover?
The program began on March 13th, 2020 and finishes on September 30, 2021, for qualified companies.
You can use for refunds for 2020 and also 2021 after December 31st of this year, right into 2022 and 2023. And also potentially beyond then also.
Many services have received reimbursements, and also others, in addition to refunds, additionally qualified to continue getting ERC in every pay-roll they refine to December 31, 2021, at close to 30% of their payroll expense.
Some companies have actually obtained refunds from $100,000 to $6 million.
Do we still certify if we currently took the PPP?
Yes. Under the Consolidated Appropriations Act, companies can now get the ERC also if they currently got a PPP financing. Keep in mind, however, that the ERC will only apply to earnings not made use of for the PPP.
sustain a 20% decrease in gross receipts .
A federal government authority needed full or partial closure of your company throughout 2020 or 2021. This includes your operations being restricted by commerce, failure to take a trip or constraints of team meetings.
- Gross invoice reduction requirements is various for 2020 and 2021, however is measured versus the present quarter as compared to 2019 pre-COVID amounts:
- A government authority called for partial or full shutdown of your organization during 2020 or 2021. This includes your procedures being limited by commerce, inability to travel or restrictions of group conferences.
- Gross invoice reduction standards is various for 2020 as well as 2021, however is measured against the current quarter as contrasted to 2019 pre-COVID quantities.
Do we still certify if we stayed open throughout the pandemic?
Yes. To qualify, your service should meet either among the following criteria:
- Experienced a decline in gross invoices by 20%, or
- Needed to change service procedures because of federal government orders
Lots of products are considered as modifications in business operations, consisting of shifts in task duties and the acquisition of additional safety tools.