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Greece NY Employee Retention Grant Program


Can you take the employee retention credit on the incomes paid of your S corporation to you, the 100% owner? Now, this is a big argument in the tax expert community right now. I'm not going to hang my hat on any one position until we get more clarification from the IRS on this, however if I had to lean one way or the other, I would lean in the direction of saying that owner earnings insofar as we're talking about someone who owns more than 50 percent of business, do not certify.

How It Functions

I don't want to get too technical here, however Section 2301(e) of the CARES Act -- which created the employee retention credit -- states that for functions of the employee retention credit, "guidelines similar to the guideline of areas 51(i)( 1) and 280C(a) of the Internal Profits Code of 1986 will use," don't get caught up on the 1986, that's simply the last time the Internal Earnings Code had a major overhaul, so it's simply described as the Internal Profits Code of 1986. The fundamental part here is those other code sections referral.

Because that's the easy one, let's start with 280C(a). That is just saying that if you get a credit on some wages you pay in your business, you can't double dip and take a reduction for those very same wages. Now let's talk about area 51(i)( 1 ), which says, "No incomes shall be taken into account ...

with respect to an individual who person any of the relationships described in explained (A) through (G) of section 152Aread)( 2) to the taxpayer, or, if the taxpayer is a corporation, to an individual who person, directly or indirectly, more than 50 percent in value of the outstanding stock exceptional the corporation, or, if the taxpayer is an entity other than a corporation, to any individual who owns, directly or straight, more than 50 percent of the capital and profits interests revenues the entity." Let's focus on the provision that states "if the taxpayer is a corporation" due to the fact that we're assuming an S corp taxpayer here.

So this is saying that you do not take into consideration earnings with respect to a person who owns, directly or indirectly, more than 50 percent in worth of the exceptional stock of the corporation. That appears clear to me that owner wages do not qualify. Now, some tax professionals are taking a look at the employee retention credit qualified wages FAQs on the IRS website, and they're looking at FAQ 59, which says, "Are incomes paid by an employer to staff members who are related individuals thought about qualified incomes?

" and they're stating, "Look at the answer here. It's just these relatives whose incomes do not count. And the IRS didn't specifically state owner wages or spouse earnings don't count here, so bad-a-boo, bad-a-bing, therefore owner incomes should count." To that, I would state, "Look. The IRS site is not the tax code.



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About Employee Retention Grant Program

If there's a dispute between the IRS site and the tax code, and there are plenty, believe me, the tax code wins every time. You can't say, 'Well, it stated such and such on the IRS's site!'" And in this case, it's an argument by omission.

You're stating, "Well, the IRS website doesn't explicitly say that owner salaries are omitted so for that reason they must be OK." No, take a look at the code and the regs also, though naturally the code is more reliable than the regs.

On the other hand, the section in the CARES Act itself about this is undoubtedly unclear, all it states is, "For functions of this section, rules comparable to the guidelines of areas 51( i)( 1) and 280C( a) of the Internal Revenue Code of 1986 will apply." "Rules comparable to ..." What does that imply? It's up to Treasury to figure this out. My take on this right now, unless the IRS comes out and certainly says otherwise, I'm presuming that you can't take the employee retention credit on owner wages.

And it's the same if it's, you understand, a husband-wife-owned company, let's say both own 50%, well, sorry you're related so neither of your earnings qualify either, nor family members you utilize, kids, brother or sisters, etc. Alright, folks, that's what I have for you here, naturally I'm simply scratching the surface area especially with that interplay between the PPP and the employee retention credit. , if you would like to to

Why Employee Retention Grant Program?

It underwent numerous changes and also has many technological details, consisting of how to figure out certified salaries, which workers are eligible, and also more. Your company details situation may need even more extensive review as well as evaluation. The program is complicated as well as may leave you with many unanswered questions.

There are lots of Companies that can assist understand all of it, that have actually committed professionals that will certainly direct you, as well as describe the steps you need to take so you can maximize the claim for your service.



Exactly How to Get Moving|Start

Below you will find a list of Companies that can help you get started.

Directory For Employee Retention Grant Program Companies Available in Greece NY
Equifax Workforce Solutions
Valiant Capital
NYC Business
Omega Funding solutions
Disisaster Loan Advisors
ERTC Filing
Adams Brown Strategic Allies and CPAs
Finance Pro Plus
Bottom Line Concepts

Ready To Get Started? Its Simple.
1. Whichever company you select  to work with will determine whether your business certifies for the ERC.

2. They will examine your request as well as compute the optimum quantity you can receive.

3. Their group guides you through the asserting procedure, from beginning to finish, consisting of proper 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 employers.

You can get refunds for 2020 and 2021 after December 31st of this year, into 2022 and also 2023. And possibly past after that too.

Many organizations have received refunds, as well as others, in addition to reimbursements, likewise qualified to continue receiving ERC in every payroll they process to December 31, 2021, at around 30% of their payroll cost.

Some companies have received reimbursements 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 qualify for the ERC also if they already obtained a PPP lending. Note, however, that the ERC will just apply to earnings not utilized for the PPP.

Do we still certify if we did not sustain a 20% decrease in gross invoices .

A government authority required partial or complete closure of your company during 2020 or 2021. This includes your operations being restricted by commerce, inability to travel or constraints of team conferences.

  • Gross receipt decrease standards is various for 2020 and also 2021, however is measured versus the present quarter as compared to 2019 pre-COVID quantities:

    • A government authority required complete or partial closure of your business during 2020 or 2021. This includes your operations being limited by business, lack of ability to take a trip or restrictions of team meetings.
    • Gross invoice reduction standards is various for 2020 and also 2021, yet is measured against the existing quarter as compared to 2019 pre-COVID amounts.
Do we still certify if we continued to be open throughout the pandemic?

Yes. To certify, your business should satisfy either one of the following standards:

  • Experienced a decline in gross receipts by 20%, or
  • Had to change service operations due to federal government orders

Several products are taken into consideration as adjustments in business operations, consisting of shifts in job roles and the acquisition of additional safety devices.