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Hempstead 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 huge debate in the tax professional neighborhood today. I'm not going to hang my hat on any one position until we get more information from the IRS on this, however if I needed to lean one way or the other, I would lean in the direction of saying that owner wages insofar as we're talking about someone who owns more than 50 percent of the service, do not qualify.

Just how It Functions

I don't wish to get too technical here, but Section 2301(e) of the CARES Act -- which developed the employee retention credit -- states that for functions of the employee retention credit, "rules comparable to the rule of sections 51(i)( 1) and 280C(a) of the Internal Profits Code of 1986 will use," do not get caught up on the 1986, that's simply the last time the Internal Earnings Code had a significant overhaul, so it's just described as the Internal Profits Code of 1986. The fundamental part here is those other code sections recommendation.

That is just stating that if you get a credit on some salaries you pay in your service, you can't double dip and take a reduction for those very same earnings. Let's focus on the clause that says "if the taxpayer is a corporation" because we're assuming an S corp taxpayer here.

This is saying that you do not take into account earnings with respect to an individual who owns, straight or indirectly, more than 50 percent in worth of the outstanding stock of the corporation. That seems clear to me that owner incomes do not certify. Now, some tax professionals are looking at the employee retention credit qualified salaries FAQs on the IRS website, and they're taking a look at FAQ 59, which says, "Are earnings paid by an employer to employees who are related individuals thought about qualified salaries?

" and they're stating, "Look at the response here. It's only these family members whose wages do not count. And the IRS didn't particularly say owner incomes or spouse earnings do not count here, so bad-a-boo, bad-a-bing, therefore owner earnings 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 state, 'Well, it said such and such on the IRS's website!'" And in this case, it's an argument by omission.

You're saying, "Well, the IRS website doesn't explicitly state that owner incomes are left out so therefore they must be OK." No, take a look at the code and the regs too, though naturally the code is more authoritative than the regs.

"Rules similar to ..." What does that mean? My take on this right now, unless the IRS comes out and certainly states otherwise, I'm assuming that you can't take the employee retention credit on owner incomes.

And it's the same if it's, you know, a husband-wife-owned company, let's say both own 50%, well, sorry you're related so neither of your wages certify either, nor family members you use, kids, brother or sisters, and so on. Alright, folks, that's what I have for you here, naturally I'm just scratching the surface specifically with that interplay between the PPP and the employee retention credit. If you would like to to

Why Employee Retention Grant Program?

It went through a number of changes and also has lots of technological information, including just how to determine professional salaries, which employees are eligible, and also much more. Your service particular instance might need even more intensive evaluation and also evaluation. The program is complex and could leave you with lots of unanswered concerns.

There are numerous Companies that can aid understand it all, that have dedicated specialists who will guide you, and outline the actions you require to take so you can optimize the claim for your organization.



Just How to Get Moving|Begin

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

Directory For Employee Retention Grant Program Companies Available in Hempstead 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

Prepared To Start? Its Simple.
1. Whichever company you select  to work with will certainly establish whether your company certifies and gets approvel for the ERC.

2. They will examine your claim and compute the maximum quantity you can obtain.

3. Their team overviews you through the claiming process, from starting to end, including appropriate documents.

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 businesses.

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

Many companies have received refunds, as well as others, in enhancement to reimbursements, also qualified to continue getting ERC in every pay-roll they refine through December 31, 2021, at about 30% of their pay-roll expense.

Some services have actually received reimbursements from $100,000 to $6 million.
Do we still qualify if we already took the PPP?

Yes. Under the Consolidated Appropriations Act, businesses can currently get approved for the ERC even if they currently obtained a PPP financing. Note, however, that the ERC will only apply to wages not used for the PPP.

Do we still certify if we did not incur a 20% decline in gross invoices .

A government authority required partial or complete shutdown of your business during 2020 or 2021. This includes your procedures being limited by business, inability to travel or constraints of team meetings.

  • Gross receipt decrease criteria is different for 2020 and also 2021, however is determined versus the present quarter as contrasted to 2019 pre-COVID amounts:

    • A federal government authority needed complete or partial shutdown of your business during 2020 or 2021. This includes your procedures being restricted by business, inability to travel or restrictions of team meetings.
    • Gross receipt decrease standards is different for 2020 and also 2021, however is gauged against the current quarter as contrasted to 2019 pre-COVID quantities.
Do we still qualify if we stayed open during the pandemic?

Yes. To certify, your organization should satisfy either one of the following requirements:

  • Experienced a decrease in gross invoices by 20%, or
  • Needed to alter organization procedures because of government orders

Lots of products are thought about as adjustments in company operations, including changes in work roles as well as the acquisition of extra protective devices.