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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.
Because that's the stuff 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 stuff. In this video I wish to inform you what you require 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 circumstances, of your service's tax situation to generate more money circulation in your business and more wealth for yourself.
Services provided can include:
Dedicated professionals that will translate extremely complex program rules and will certainly be offered to address your concerns, including:
What period does the program cover?
Greece NY Employee Retention 2021 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.
Exactly How It Functions
This is huge, a lot of small company owners don't know about this, or they've heard about it, but they don't know much about it, even lots of tax experts do not know the ins and outs of this thing since it's brand-new and a great deal of these modifications
that are beneficial to company owner occurred in the middle of tax season. So in this video I'm going to dig into the employee retention credit, why it's so rewarding now in 2021, more rewarding, far more rewarding, in fact now than it remained in 2020, 5x more rewarding at least. So even if you don't own a service, make sure to share this video with entrepreneur you know, this video might literally deserve tens of thousands of dollars for them. And if you are an entrepreneur and after you see this video you wish 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 e-mail, [email protected], tell me a little about your organization and your ballpark year-over-year income, and let's see if we can get some more refund in your pocket because you can take this credit versus your payroll taxes you pay by lowering your required 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. Because that's the stuff 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 stuff. In this video I wish to inform you what you require 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 circumstances, of your service's tax situation to generate more money circulation in your business and more wealth for yourself.
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About Employee Retention 2021 Ertc Qualifications
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, before I get into this, I desire to say that nothing in this video is to be taken as legal or tax recommendations, this video is for basic informational purposes only, yes, I am a CPA and a tax expert, but I am not your CPA nor your tax expert unless you have actually engaged my firm. Another disclaimer here, for functions of this video I am assuming that if you're seeing this you are a small company owner, which for employee retention credit functions indicates one hundred or less workers for functions of the 2020 credit and five hundred or fewer staff members for functions of the 2021 credit, if you have a company with over five hundred workers I envision 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 regional tax expert who is so neck-deep in tax returns right now due to the fact that the federal government extended the tax deadline to May 17 or volume is just the nature of their business that your tax expert 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 since then, because the CARES Act? 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 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 nerdy girl with thick glasses and neglected eyebrows 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 2021 Ertc Qualifications
Reason, the employee retention credit for both 2020 and 2021 is now readily 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 workers and then turn around and claim the employee retention credit on those salaries. If you got PPP and you are eligible for the employee retention credit, then when you do your PPP forgiveness application, you require to pick the finest covered duration that will get you full PPP forgiveness however also maximize your employee retention credit.
Likewise, for PPP forgiveness, you desire to fill up that payroll bucket with as many costs as possible that do not count for employee retention credit functions. For instance, you can't claim the employee retention credit on state unemployment insurance coverage contributions, however state joblessness insurance coverage contributions count towards PPP forgiveness, see? So you 'd wish to dispose 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.
Another thing to note is you can't subtract the wages you claimed the employee retention credit on, and that makes sense as well, why should the government offer you a deduction for these earnings that they already gave you a credit for? Alright, sorry for getting a little sidetracked there, I simply like 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 certify for the employee retention credit in 2021.
However in 2021, for a quarter to certify for the employee retention credit, you just require to show a 20% decrease in gross receipts compared to the exact same calendar quarter in 2019. This implies far more businesses will qualify. My organization, for instance, experienced a 26% decrease in gross receipts, comparing Q1 2019 to Q1 2021, and it was a similar story in 2015 too.
So I didn't receive the 2020 employee retention credit first, due to the fact that I got very first round of PPP money and second due to the fact that my organization didn't suffer that big 50% decline needed to qualify for the employee retention credit last year.But for 2021, a minimum of for Q1, yeah, my business certifies. For 2021, for any quarter, you can elect to utilize the lookback quarter, suggesting that, for example, even if your Q1 2021 gross invoices 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. Implication here is that if you receive Q1 2021 based upon Q1 2021's gross receipts, you will likewise get approved for Q2 2021 since you certified in the lookback quarter of Q1 2021.
Same thing for Q2 to Q3 and Q3 to Q4, so generally if you simply qualify for Q1 and Q3 2021, you likewise certify for 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 required to completely or partly suspend operations in your company 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 period of partial or complete shutdown.
Common example, you own a restaurant, and your guv signed an executive order stating that you need to close 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 brand-new laws, making PPP receivers eligible for the employee retention credit though not on the same salaries and making more businesses eligible through the 20% decrease limit instead of the 50% decrease limit, but the 2021 credit is likewise more profitable than the 2020 credit.
This is because for 2020, the employee retention credit was equal to 50% of all certified salaries for 2020, the employee retention credit amounted to 50% of all certified incomes you paid staff members between March 12, 2020, and December 31, 2020, with a limitation of $10,000 in incomes for that entire time duration. So the optimum 2020 credit per worker was $5,000. Okay, but that's absolutely nothing compared to the 2021 credit due to the fact that for 2021, the credit is equal to 70% of qualified wages per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per worker ... for that whole time duration? No. Per quarter. 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 worker per quarter, so we're talking about a maximum credit of $7,000 per worker per quarter. If you're eligible all four quarters, $7,000 times 4 is $28,000. That's right, folks, the maximum 2021 employee retention credit is $28,000 per worker. That's big. That's a godsend to many business owners today. You see what I imply now, right, how the employee retention credit has gone from ugly duckling in 2020 to stunning swan in 2021? And by the way, by the way, certified incomes includes employer-paid health insurance coverage premiums.
If you got PPP and you are qualified 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 maximize your employee retention credit.
Alright, sorry for getting a little sidetracked there, I simply like talking about this things, 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 simpler to qualify for the employee retention credit in 2021. I didn't certify for the 2020 employee retention credit first, because I got very 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 service certifies. Not only are more businesses qualified 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 services eligible through the 20% decrease threshold rather than the 50% decline limit, however the 2021 credit is also more profitable 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 salaries per worker paid from January 1, 2021 through December 31, 2021, limited to $10,000 in salaries per worker ... for that whole time period?
Just How to Begin
That will certainly discuss on behalf of their clients to obtain the best rates possible for their existing customers. They will examine old billings for mistakes obtaining their clients refunds and credits.
Services provided can include:
Dedicated professionals that will translate extremely complex program rules and will certainly be offered to address your concerns, including:
Exactly how does the PPP loan element right into the ERC?
What are the differences in between the 2020 and 2021 programs and also just how does it put on your company?
What are aggregation rules for bigger, multi-state employers, and also exactly how do I interpret several states executive orders?
Just how do part-time, Union, and tipped staff members affect the quantity of my refunds?
Thorough assessment concerning your eligibility
Extensive analysis of your claim
Support on the asserting process and also documents
Certain program competence that a routine certified public accountant or payroll processor might not be well-versed in
Quick as well as smooth end-to-end procedure, from eligibility to claiming and 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/ |
Prepared To Get Begun? Its Simple.
1. Whichever business you choose to work with will figure out whether your service certifies for the ERC.
2. They will evaluate your case and compute the maximum quantity you can receive.
3. Their team guides you through the claiming procedure, from beginning to finish, including correct paperwork.
Frequently Asked Questions (FAQs)
What period does the program cover?
The program started on March 13th, 2020 and also ends on September 30, 2021, for qualified employers.
You can get refunds for 2020 and 2021 after December 31st of this year, right into 2022 and also 2023. And also possibly beyond then too.
Many organizations have received reimbursements, as well as others, along with reimbursements, 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 organizations have actually obtained 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 currently qualify for the ERC also if they already got a PPP car loan. Note, however, that the ERC will only put on salaries not made use of for the PPP.
maintain a 20% decrease in gross invoices .
A federal government authority needed full or partial shutdown of your company throughout 2020 or 2021. This includes your operations being limited by commerce, failure to travel or constraints of group meetings.
- Gross invoice decrease criteria is different for 2020 and also 2021, but is determined against the present quarter as compared to 2019 pre-COVID quantities:
- A federal government authority needed partial or complete closure of your organization during 2020 or 2021. This includes your procedures being limited by commerce, inability to take a trip or limitations of group conferences.
- Gross invoice reduction requirements is different for 2020 and 2021, however is determined against the existing quarter as compared to 2019 pre-COVID quantities.
Do we still qualify if we stayed open during the pandemic?
Yes. To certify, your business needs to satisfy either among the adhering to standards:
- Experienced a decrease in gross receipts by 20%, or
- Had to alter company operations due to government orders
Numerous products are taken into consideration as modifications in company operations, consisting of changes in job functions as well as the purchase of extra protective equipment.