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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.
Services provided can include:
Dedicated experts that will certainly interpret highly complex program policies and also will certainly be available to answer your inquiries, including:
What duration does the program cover?
Greenburgh NY Employee Retention 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.
Just how It Works
Even if you don't own a company, be sure to share this video with company owners you understand, this video could literally be worth tens of thousands of dollars for them. And if you are a company owner and after you see this video you desire 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], tell me a little about your organization and your ballpark year-over-year earnings, and let's see if we can get some more cash back in your pocket since you can take this credit against your payroll taxes you pay by reducing your needed work tax deposits or you can request an advance payment of the credit using IRS Form 7200, Advance Payment of Employer Credits Due to COVID-19.
Because that's the stuff your CPA ought to fret 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 desire to inform you what you need to understand so you can go to your CPA and state, "Hey, what about this employee retention credit, why haven't you informed me about this?" so you can be notified and take ownership of your own tax scenarios, of your service's tax scenario to generate more capital in your organization and more wealth on your own.
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About Employee Retention Qualifications
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 get into this, I wish to say that absolutely nothing in this video is to be taken as legal or tax advice, this video is for general informational purposes just, yes, I am a CPA and a tax expert, but I am not your CPA nor your tax professional unless you have engaged my firm as such. Another disclaimer here, for functions of this video I am presuming that if you're enjoying this you are a little company owner, which for employee retention credit functions indicates one hundred or less workers for purposes of the 2020 credit and 5 hundred or less employees for functions of the 2021 credit, if you have a business with over 5 hundred employees I picture 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 might deal with a local tax specialist who is so neck-deep in tax returns today since the federal government extended the tax deadline to May 17 or volume is simply 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 lucrative for service owners in 2021 and why weren't we talking about it in 2020, it's been around since then, since the CARES Act? Yes, the employee retention credit has been around considering that the CARES Act that was passed over a year ago in March 2020, but the employee retention credit didn't get much love last year in 2020 because of the PPP, the Paycheck Protection Program.
Generally the employee retention credit had a glow-up in between 2020 and 2021, it went from the unpopular lady with neglected eyebrows and thick glasses and her hair up in 2020 to the belle of the ball for company owners in 2021. Why is the employee retention credit more appealing now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act?
Why Employee Retention Qualifications
First factor, the employee retention credit for both 2020 and 2021 is now available to PPP receivers, however obviously you can't double dip. You can't get PPP for the hundred thousand dollars you paid your employees and after that turn around and claim the employee retention credit on those wages also. The federal government does not look too fondly on paying your payroll for you through the PPP and then you declaring a credit versus the taxes you pay the government on those incomes that the government paid for you. So that makes sense. Now, there's some planning here. If you got PPP and you are eligible 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 but also optimize your employee retention credit.
For PPP forgiveness, you desire to fill up that payroll bucket with as numerous expenses as possible that don't count for employee retention credit functions. You can't claim the employee retention credit on state unemployment insurance coverage contributions, but state unemployment insurance contributions count towards PPP forgiveness, see? So you 'd desire to dispose all your state joblessness insurance contributions on your PPP forgiveness application to leave as much common incomes as possible to take the employee retention credit on.
Another thing to note is you can't deduct the earnings you claimed the employee retention credit on, and that makes sense as well, why should the federal government give you a deduction for these incomes that they already gave you a credit for? Alright, sorry for getting a little sidetracked there, I simply love talking about this things, however 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.
But in 2021, for a quarter to get approved for the employee retention credit, you only require to reveal a 20% decline in gross receipts compared to the exact same calendar quarter in 2019. This indicates far more services will qualify. My organization, 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 initially, because I got preliminary of PPP money and 2nd because my service didn't suffer that large 50% decline needed to certify for the employee retention credit last year.But for 2021, a minimum of for Q1, yeah, my organization qualifies. For 2021, for any quarter, you can elect to utilize the lookback quarter, indicating 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. Ramification here is that if you get approved for Q1 2021 based upon Q1 2021's gross receipts, you will likewise qualify for Q2 2021 since you qualified in the lookback quarter of Q1 2021.
Exact same thing for Q2 to Q3 and Q3 to Q4, so generally if you just get approved for Q1 and Q3 2021, you also certify for Q2 and Q4 based on the lookback. Even if you didn't have a sufficient decrease in earnings, you can certify for the employee retention credit if you were needed to completely or partially suspend operations in your organization 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 full or partial shutdown.
Common example, you own a dining establishment, and your guv signed an executive order mentioning that you require to shut down indoor dining. That is an example of a partial shutdown. Likewise, not just 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 exact same incomes and making more companies eligible through the 20% decrease threshold rather than the 50% decline threshold, however the 2021 credit is also more lucrative than the 2020 credit.
Not bad, but that's nothing compared to the 2021 credit because for 2021, the credit is equal to 70% of certified salaries per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per worker ... for that whole time period? For 2021 the portion is more (70% in 2021 vs. 50% in 2020) and you can take it on up to $10,000 in earnings per staff member per quarter, so we're talking about a maximum credit of $7,000 per staff member 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 eligible for the employee retention credit, then when you do your PPP forgiveness application, you require to choose the finest 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 just like 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 much easier to qualify for the employee retention credit in 2021. I didn't certify for the 2020 employee retention credit initially, due to the fact that I got first round of PPP money and 2nd because my service didn't suffer that large 50% decrease needed to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my business certifies. Not only are more organizations qualified for the employee retention credit thanks to these new laws, making PPP recipients qualified for the employee retention credit though not on the very same salaries and making more services eligible through the 20% decline limit rather than the 50% decrease threshold, but the 2021 credit is also more profitable than the 2020 credit.
Not bad, however that's absolutely nothing compared to the 2021 credit since for 2021, the credit is equal to 70% of certified earnings per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per employee ... for that entire time duration?
How to Begin
The very best way is to deal with a no-risk, contingency-based cost financial savings company. That will certainly work out in support of their clients to obtain the finest rates feasible for their existing clients. They will certainly investigate old billings for mistakes getting their clients reimbursements as well as credits. They can enhance the productivity and overall valuation of their clients companies.
Services provided can include:
Dedicated experts that will certainly interpret highly complex program policies and also will certainly be available to answer your inquiries, including:
Just how does the PPP financing variable into the ERC?
What are the distinctions in between the 2020 as well as 2021 programs and exactly how does it relate to your company?
What are aggregation regulations for larger, multi-state companies, and also just how do I translate several states executive orders?
Just how do part-time, Union, and tipped workers impact the amount of my refunds?
Thorough assessment concerning your eligibility
Detailed analysis of your claim
Assistance on the asserting process and also documentation
Particular program proficiency that a routine certified public accountant or pay-roll cpu may not be well-versed in
Fast and smooth end-to-end procedure, from qualification to asserting and obtaining 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/ |
Prepared To Start? Its Simple.
1. Whichever business you choose to work with will certainly figure out whether your service certifies for the ERC.
2. They will certainly analyze your request and also calculate the maximum amount you can get.
3. Their group guides you with the declaring process, from beginning to finish, including appropriate paperwork.
Frequently Asked Questions (FAQs)
What duration does the program cover?
The program started on March 13th, 2020 and also ends on September 30, 2021, for eligible employers.
You can make an application for reimbursements for 2020 and 2021 after December 31st of this year, right into 2022 and 2023. And also potentially beyond then as well.
Many services have received refunds, as well as others, along with refunds, likewise qualified to continue getting ERC in every payroll they refine to December 31, 2021, at close to 30% of their pay-roll expense.
Some organizations have obtained reimbursements from $100,000 to $6 million.
Do we still qualify if we already took the PPP?
Yes. Under the Consolidated Appropriations Act, organizations can now qualify for the ERC also if they currently got a PPP car loan. Keep in mind, though, that the ERC will just relate to incomes not made use of for the PPP.
maintain a 20% decrease in gross receipts .
A government authority called for partial or complete closure of your organization throughout 2020 or 2021. This includes your procedures being limited by commerce, lack of ability to travel or limitations of group conferences.
- Gross receipt reduction standards is different for 2020 as well as 2021, yet is measured versus the present quarter as compared to 2019 pre-COVID amounts:
- A government authority needed complete or partial closure of your business throughout 2020 or 2021. This includes your procedures being limited by commerce, failure to travel or constraints of team conferences.
- Gross invoice reduction criteria is various for 2020 and 2021, yet is determined versus the present quarter as compared to 2019 pre-COVID quantities.
Do we still qualify if we remained open throughout the pandemic?
Yes. To qualify, your organization should meet either one of the following requirements:
- Experienced a decline in gross invoices by 20%, or
- Needed to change service operations due to federal government orders
Numerous things are taken into consideration as modifications in organization procedures, consisting of changes in work duties as well as the purchase of additional protective tools.