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Forest Hills NY Employee Retention Tax Credit And Ppp




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 understand about this, or they've heard about it, but they don't know much about it, even numerous tax specialists do not understand the ins and outs of this thing because it's brand-new and a great deal of these modifications

that are advantageous to entrepreneur happened in the middle of tax season. So in this video I'm going to dig into the employee retention credit, why it's so financially rewarding now in 2021, more lucrative, even more rewarding, in reality now than it was in 2020, 5x more financially rewarding a minimum of. So even if you do not own a service, make sure to share this video with service owners you understand, this video might literally deserve 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 also be either a CPA like myself or an EA, shoot me an e-mail, [email protected], tell me a little about your organization and your ballpark year-over-year profits, and let's see if we can get some more cash back in your pocket because you can take this credit versus your payroll taxes you pay by decreasing 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.
 


I am not going to get into the intricacies of that form here or the Form 941 and all the payroll things since that's the things your CPA need to fret about. In this video I want to inform 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?" You can be notified and take ownership of your own tax situations, of your organization's tax circumstance to create more cash flow in your organization and more wealth for yourself.
 

 


 

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About Employee Retention Tax Credit And Ppp

Alright, now let's dig 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 into this, I wish to say that absolutely nothing in this video is to be taken as legal or tax recommendations, this video is for general informational purposes only, yes, I am a tax and a cpa expert, but I am not your CPA nor your tax expert unless you have engaged my firm as such. Another disclaimer here, for purposes of this video I am assuming that if you're seeing this you are a small company owner, which for employee retention credit functions implies one hundred or fewer employees for functions of the 2020 credit and 5 hundred or fewer staff members for functions of the 2021 credit, if you have a business with over 5 hundred staff members I picture you have in-house counsel, in-house CPAs who are on top of this stuff, however I'm here for you small company owners who may deal with a regional tax expert who is so neck-deep in income tax return today due to the fact that the government extended the tax due date to May 17 or volume is simply the nature of their service 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 financially rewarding for company 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 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 last year in 2020 since of the PPP, the Paycheck Protection Program.

Basically the employee retention credit had a glow-up in between 2020 and 2021, it went from the unpopular woman with thick glasses and unkempt eyebrows and her hair up in 2020 to the belle of the ball for service 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 Tax Credit And Ppp

Very first 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 then turn around and claim the employee retention credit on those earnings. The federal government doesn't look too fondly on paying your payroll for you through the PPP and after that you declaring a credit versus the taxes you pay the federal government on those earnings that the government paid 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 need to select the finest covered duration that will get you complete PPP forgiveness however likewise maximize your employee retention credit.



Also, for PPP forgiveness, you wish to fill up that payroll pail with as lots of expenses as possible that do not count for employee retention credit functions. You can't claim the employee retention credit on state unemployment insurance coverage contributions, however state unemployment insurance coverage contributions count toward PPP forgiveness, see? You 'd want to dispose all your state joblessness insurance coverage contributions on your PPP forgiveness application to leave as much common wages as possible to take the employee retention credit on.

So this can get really technical very fast and it's extremely scenario particular in regards to optimizing PPP vs. ERC and my firm has tools to figure this things out for you, I'm not going to dig into all that here, but just understand that you actually need to do the mathematics when doing your PPP forgiveness to ensure you're not leaving anything on the table in terms of the employee retention credit. Another thing to note is you can't deduct the wages you declared the employee retention credit on, which makes sense too, why should the federal government give you a deduction for these earnings that they already provided you a credit for? Basically the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I just love discussing this things, however let's discuss another reason that the employee retention credit is more appealing now than it was in 2015, which is that it's simpler to receive the employee retention credit in 2021. In 2020, for a quarter to receive the employee retention credit, you had to reveal a 50% decrease in gross invoices compared to the very same calendar quarter in 2019.

However in 2021, for a quarter to receive the employee retention credit, you just require to show a 20% reduction in gross receipts compared to the very same calendar quarter in 2019. So this indicates far more services will qualify. My service, for example, experienced a 26% decrease 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 first, due to the fact that I got first round of PPP money and 2nd because my organization didn't suffer that large 50% decline required to qualify for the employee retention credit last year.But for 2021, a minimum of for Q1, yeah, my company certifies. For 2021, for any quarter, you can choose to use the lookback quarter, indicating that, for example, even if your Q1 2021 gross receipts aren't at least 20% lower than your Q1 2019 gross receipts, you can compare for purposes of identifying eligibility for the employee retention credit for Q1 2021, you can compare Q4 2020 to Q4 2019. Ramification here is that if you get approved for Q1 2021 based upon Q1 2021's gross receipts, you will also receive Q2 2021 because you qualified in the lookback quarter of Q1 2021.

Very same thing for Q2 to Q3 and Q3 to Q4, so essentially if you just receive Q1 and Q3 2021, you likewise receive Q2 and Q4 based on the lookback. Likewise, even if you didn't have an adequate decrease in earnings, you can certify for the employee retention credit if you were required to totally or partially suspend operations in your service 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 throughout that period of complete or partial shutdown.

Common example, you own a restaurant, and your governor signed an executive order specifying that you need to close 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 brand-new laws, making PPP receivers qualified for the employee retention credit though not on the very same salaries and making more organizations eligible through the 20% decline threshold rather than the 50% decline limit, but the 2021 credit is also more profitable than the 2020 credit.

This is since for 2020, the employee retention credit was equal to 50% of all qualified incomes for 2020, the employee retention credit was equal to 50% of all certified incomes you paid staff members in between March 12, 2020, and December 31, 2020, with a limit of $10,000 in incomes for that whole time duration. So the optimum 2020 credit per staff member was $5,000. Not bad, but that's nothing compared to the 2021 credit since for 2021, the credit amounts to 70% of certified earnings per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in earnings per worker ... 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 earnings per employee per quarter, so we're talking about an optimum credit of $7,000 per worker per quarter. $7,000 times 4 is $28,000 if you're eligible all 4 quarters. That's right, folks, the optimum 2021 employee retention credit is $28,000 per staff member. That's substantial. That's a blessing to numerous entrepreneur today. So you see what I imply now, right, how the employee retention credit has gone from awful duckling in 2020 to stunning swan in 2021, right? And by the method, by the method, certified wages consists of 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 choose the finest covered duration that will get you complete PPP forgiveness but also optimize your employee retention credit.



Alright, sorry for getting a little sidetracked there, I just love talking about this things, however 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 much easier 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 since my company didn't suffer that large 50% decline required to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my organization certifies. Not only are more services eligible 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 organizations eligible through the 20% decrease threshold rather than the 50% decline threshold, but the 2021 credit is likewise more lucrative 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 qualified wages per staff member paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per employee ... for that entire time period?


           

Just How to Get going

That will certainly discuss on part of their customers to get the finest prices feasible for their existing customers. They will certainly examine old invoices for mistakes obtaining their clients refunds as well as tax credits.

                                                                                                                                                                                                                    

Assistance offered can include:  
 

Dedicated specialists that will certainly interpret very intricate program guidelines and will be available to address your concerns, including:

Just how does the PPP funding variable right into the ERC?

What are the differences between the 2020 and also 2021 programs as well as exactly how does it relate to your company?

What are aggregation regulations for larger, multi-state companies, and also how do I translate numerous states executive orders?

How do part-time, Union, as well as tipped workers influence the quantity of my refunds?




Comprehensive analysis concerning your eligibility

Detailed evaluation of your situation

Support on the asserting procedure as well as documentation

Particular program expertise that a normal CPA or payroll cpu might not be well-versed in

Fast and also smooth end-to-end procedure, from qualification to claiming and also obtaining refunds


 


 
Directory For Employee Retention Tax Credit And Ppp Companies Available in Forest Hills NY
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 Begin? Its Simple.
1. Whichever business you pick  to work with will determine whether your company qualifies and gets approvel for the ERC.

2. They will analyze your claim as well as compute the optimum quantity you can get.

3. Their group overviews you via the claiming process, from starting to finish, consisting of proper documentation.

Frequently Asked Questions (FAQs)

What period does the program cover?

The program started on March 13th, 2020 and also finishes on September 30, 2021, for eligible organizations.

You can get refunds for 2020 and 2021 after December 31st of this year, right into 2022 as well as 2023. And also possibly beyond then as well.

Many services have received reimbursements, and others, in addition to reimbursements, additionally certified to continue receiving ERC in every payroll they process through December 31, 2021, at close to 30% of their pay-roll cost.

Some services have actually received refunds from $100,000 to $6 million.
Do we still certify if we currently took the PPP?

Yes. Under the Consolidated Appropriations Act, organizations can currently certify for the ERC also if they already got a PPP financing. Keep in mind, however, that the ERC will only use to earnings not utilized for the PPP.

sustain a 20% decline in gross receipts .

A federal government authority required partial or full closure of your service during 2020 or 2021. This includes your operations being limited by business, failure to travel or limitations of group meetings.

  • Gross invoice decrease requirements is various for 2020 and also 2021, yet is determined versus the current quarter as compared to 2019 pre-COVID quantities:

    • A federal government authority called for partial or complete closure of your organization throughout 2020 or 2021. This includes your operations being limited by commerce, lack of ability to take a trip or limitations of group conferences.
    • Gross invoice reduction standards is various for 2020 and also 2021, however is determined against the existing quarter as contrasted to 2019 pre-COVID quantities.
Do we still qualify if we stayed open throughout the pandemic?

Yes. To qualify, your company should fulfill either among the complying with standards:

  • Experienced a decrease in gross receipts by 20%, or
  • Had to alter company procedures due to federal government orders

Many products are considered as adjustments in organization procedures, including changes in work duties and also the purchase of extra protective tools.