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Jackson Heights NY Employee Retention Program

 

Established by the CARES Act, the ERC is a refundable tax credit – a grant, not a loan – that a business can claim. The Employee Retention Program is available to both mid-sized and small business and is based upon certified wages and health care paid to workers. Qualifying businesses can take benefit of the following offerings:
As much as$ 26,000 per staff member
Available for 2020 and the first 3 quarters of 2021
Can qualify with decreased income or COVID occasion
No limit on financing.EMPLOYEE RETENTION PROGRAM is a refundable tax creditThe ERC has gone through numerous modifications and has numerous technical information, consisting of how to identify certified wages, which workers are eligible and more. Lots of Companies are availablt tohelps make sense of everything through dedicated specialists that direct and outline the actions that require to be taken so service owners can maximize their claim.  “The employee retention program is a incredibly under-utilized and incredibly valuable financial assistance chance for little business owners to receive from the federal government, discusses Business Warrior CEO Rhett Doolittle. After identifying this opportunity to assist more small companies, developing a partnership with Bottom Line Savings was a no-brainer. Since 2008, theyve recuperated over $2.2 billion dollars for more than 7,000 clients including American Express, Uber, and Rolex.To certify as an employer, company owner must fulfill the following:Experience modifications to your operations due to an Executive Order throughout 2020 or 2021; orYour gross invoices for 2020 fell listed below 50% for the same quarter in 2019 and fell listed below 80% for 2021.

 

 


 Just how It Functions
Employee Retention Program  Eligible employers must fall into one of two categories to qualify for the credit: 1. Employer has a significant decrease in gross receipts. 2020: eligible once gross receipts are down 50% versus the exact same quarter in 2019 continue to qualify till the quarter AFTER receipts are more than 80% versus the same quarter in 2019 2021: eligible if gross receipts are down 20% or more versus very same quarter in 2019 2. Companies company is completely or partially suspended by government order due to COVID-19 throughout the calendar quarter. You will just be eligible for the duration of time service was fully or partially suspended Aggregation guidelines apply when making these determinations.

Company A qualifies for the credit in Q3, however will NOT certify in Q4 unless they again experience a 50% drop in invoices vs Q4 of 2019. If instead Employer As invoices were down 25% in Q3 of 2020 vs Q3 of 2019, Employer A would certify for the credit in Q3 and in Q4, regardless of Q4 gross receipts.

2021 SIGNIFICANT DECLINE 2021 Significant Decline Details 1. Can choose to base your eligibility on the previous quarters decrease in gross receipts i.e. I can determine my eligibility in Q1 of 2021 based on Q4 of 2020 vs Q4 of 2019 NOTE: at this time it does NOT appear that you are needed to utilize this method in all future quarters once the election is made 2. If an employer did not exist in the start of the exact same quarter in 2019, the same quarter in 2020 is replaced.

COMPLETE OR PARTIAL GOVERNMENT SHUTDOWN Shutdown due to Federal, State or Local Government order that limits travel, commerce, or group conferences due to COVID-19 and that order impacts operations, hours, and so on. Examples: order to shutdown non-essential businesses, government enforced curfews, local health department required to close for cleaning/disinfecting Not eligible if company willingly suspends operation or decreases hours.

Does the company have sufficient teleworking abilities? Did you reduce your open hours in order to do a deep clean to comply? Did you need that service be performed only by appointment (previously had walk-in ability) 9.

NOMINAL EFFECT SAFE HARBOR 10% or more decline in the capability to offer goods and services in the normal course of the employers company considered partly shut down by a federal government order. Exceptions: 1. Should have some sort of element straight associated to a government order.


2020: eligible when gross receipts are down 50% versus the very same quarter in 2019 continue to qualify till the quarter AFTER invoices are more than 80% versus the same quarter in 2019 2021: eligible if gross receipts are down 20% or more versus same quarter in 2019 2. Companies organization is completely or partially suspended by federal government order due to COVID-19 throughout the calendar quarter. If rather Employer As invoices were down 25% in Q3 of 2020 vs Q3 of 2019, Employer A would qualify for the credit in Q3 and in Q4, regardless of Q4 gross invoices.

Can choose to base your eligibility on the previous quarters decrease in gross receipts i.e. I can determine my eligibility in Q1 of 2021 based on Q4 of 2020 vs Q4 of 2019 NOTE: at this time it does NOT appear that you are required to use this approach in all future quarters once the election is made 2. If a company did not exist in the start of the same quarter in 2019, the exact same quarter in 2020 is substituted.2020: eligible when gross receipts are down 50% versus the same quarter in 2019 continue to qualify till the quarter AFTER invoices are more than 80% versus the exact same quarter in 2019 2021: eligible if gross receipts are down 20% or more versus very same quarter in 2019 2. Employers business is fully or partly suspended by federal government order due to COVID-19 during the calendar quarter.

2020 SIGNIFICANT DECLINE 2020 Significant Decline Example Employer As invoices were down 55% in Q2 of 2020 vs Q2 of 2019. Employer A gets approved for the credit in Q2. Employer As receipts were only down 15% in Q3 of 2020 vs Q3 of 2019. Company A receives the credit in Q3, but will NOT certify in Q4 unless they once again experience a 50% drop in invoices vs Q4 of 2019. If rather Employer As receipts were down 25% in Q3 of 2020 vs Q3 of 2019, Employer A would qualify for the credit in Q3 and in Q4, no matter Q4 gross invoices.

2021 SIGNIFICANT DECLINE 2021 Significant Decline Details 1. Can choose to base your eligibility on the previous quarters decline in gross receipts i.e. I can determine my eligibility in Q1 of 2021 based on Q4 of 2020 vs Q4 of 2019 NOTE: at this time it does NOT appear that you are required to utilize this method in all future quarters once the election is made 2. The same quarter in 2020 is replaced if an employer did not exist in the start of the very same quarter in 2019.

FULL OR PARTIAL GOVERNMENT SHUTDOWN Shutdown due to Federal, State or Local Government order that limits group, travel, or commerce conferences due to COVID-19 and that order impacts operations, hours, etc. Examples: order to shutdown non-essential organizations, federal government imposed curfews, regional health department mandate to close for cleaning/disinfecting Not eligible if company willingly suspends operation or decreases hours.

Does the company have adequate teleworking abilities? Did you reduce your open hours in order to do a deep clean to comply? Did you require that organization be carried out only by appointment (formerly had walk-in ability) 9.

SMALL EFFECT SAFE HARBOR 10% or more decline in the capability to supply items and services in the typical course of the companies business thought about partly shut down by a federal government order. Exceptions: 1. if your company only decreased because consumers were not out. Must have some sort of factor directly associated to a government order. 2. Needing someone to use a mask or gloves will not have a nominal result.


2020: eligible once gross invoices are down 50% versus the exact same quarter in 2019 continue to certify until the quarter AFTER receipts are more than 80% versus the very same quarter in 2019 2021: eligible if gross invoices are down 20% or more versus same quarter in 2019 2. Employers business is completely or partly suspended by government order due to COVID-19 during the calendar quarter. If instead Employer As receipts were down 25% in Q3 of 2020 vs Q3 of 2019, Employer A would qualify for the credit in Q3 and in Q4, regardless of Q4 gross receipts.

Can elect to base your eligibility on the previous quarters decline in gross invoices i.e. I can determine my eligibility in Q1 of 2021 based on Q4 of 2020 vs Q4 of 2019 NOTE: at this time it does NOT appear that you are required to use this technique in all future quarters once the election is made 2. If an employer did not exist in the beginning of the exact same quarter in 2019, the very same quarter in 2020 is replaced.

 

 
                                                                                                                                                        

About The Employee Retention Program

Numerous locations or aggregated groups under different Govt. orders  - If a few of the places are partially shut down due to a federal government order AND business has a policy that the other locations (not close down) will abide by CDC or Homeland Security assistance, ALL places will be considered partially closed down. Aggregated Group If a trade or company is operated by several members of an aggregated group, and if the operations of one member of the aggregated group are suspended due to a governmental order, then all members of the aggregated group are thought about to be partly suspended.
CREDIT CALCULATION 2020 credit is 50% of qualified salaries paid during certified duration Up to $10,000 qualified incomes per staff member for the year max credit of $5,000 per staff member in 2020 2021 credit is 70% of certified salaries paid throughout competent period Up to $10,000 per employee PER quarter in which you are qualified max credit of $7,000 per worker each qualified quarter in 2021.

QUALIFIED WAGES Gross incomes Employer contributions to medical insurance Doesn't consist of incomes utilized for PPP or any other credit (i.e. FFCRA) Doesn't consist of earnings paid to FORMER workers (i.e. severance) Doesn't include incomes paid to owners member of the family Owners and partners themselves uncertain Qualified incomes restricted if thought about big company.

SMALL VS LARGE EMPLOYERS If you are a SMALL employer, incomes paid throughout eligible duration get approved for credit regardless of whether the worker has the ability to work 2020 Small Employer = 100 or fewer FULL TIME EMPLOYEES 2021 Small Employer = 500 or fewer FULL TIME EMPLOYEES If LARGE employer, only earnings paid to those who are NOT working certify Aggregation rules apply when making this determination.Full time staff members Based on 2019 employees Employee averaging 30+ hours/week or 130+ hours/month is full-time NOT an FTE calculation those under 30 hours/week not included in count.

CERTIFIED WAGES LARGE EMPLOYERS 1. Partial Day of work/paid complete day - The quantity of wage attributable to the not working is a qualifying wage. Even if the staff member is working a partial day, the part that relates to the not working will be considered a qualifying wage. 2. Payment of trip, sick, PTO, or severance is not a qualifying wage for LARGE employers only 3. Medical insurance paid while an employee is out on furlough or just partially working is a qualifying wage. You allocate the quantity of health insurance coverage to qualified and nonqualified wage if partly working.




 

Why Employee Retention Program?

PPP V. ERC 1. If have not used for forgiveness, then do the applications together in order to make the most of the benefits of both programs. Make sure that you take full advantage of the nonpayroll costs up to the 40% number on the PPP application. If you have actually used currently, the payroll consisted of in the PPP application is prohibited from the ERC to the extent that it is required to compute the forgiveness quantity.
PPP V. ERC EXAMPLES ASSUME FULL FORGIVENESS 1. Example #1 Loan amount - $100,000. Application utilized $100,000 of payroll just (not health or retirement or other expenditures). Might have included other costs but didnt. Cant use any of the payroll for ERC. 2. Example #2 Loan amount - $100,000. Application utilized $150,000 of payroll only. $100,000 is disallowed, can use $50,000 for ERC. 3. Example #3 Loan quantity - $200,000. Application used $130,000 of payroll and $70,000 of other expenses. $130,000 is disallowed. 4. Example #4 Loan amount - $200,000. Application used $200,000 of payroll and $70,000 of other costs for an overall of $270,000. $130,000 is prohibited and $70,000 is allowed. $130,000 is the minimum amount of payroll costs required to get full forgiveness. 5. Example #5 Loan amount - $200,000. Application used $200,000 of payroll expenses and $90,000 of other expenditures for a total of $290,000. $120,000 is prohibited and $80,000 is allowed. $200k * 60% minimum. Go to the minimum payroll expenses required.


Application used $100,000 of payroll just (not health or retirement or other costs). Application utilized $130,000 of payroll and $70,000 of other expenditures. Application utilized $200,000 of payroll and $70,000 of other expenditures for an overall of $270,000. Application used $200,000 of payroll expenses and $90,000 of other expenditures for an overall of $290,000.

 
           

Just How to Begin

Owners relatives cant get ERC Put all of their wages to PPP, subject to PPP limits. Schedule C or Partners with Self Employment (dispute is still out on the owner/employees) cant get ERC Put all of their self work to PPP, subject to PPP limits 3. If the shut down takes place in 2nd quarter, use all of the qualified 3rd and 4th quarter wages toward the PPP and use the 2nd quarter salaries for the ERC.

INCOME TAX CONSEQUENCES Deductibility of wages: The amount of the credit lowers the overall wage reduction, and hence reduces salaries for other functions, such as the R&D credit, or 199A NYS permits a subtraction adjustment to subtract the salaries

CLAIMING THE ERC 1. If previous quarter) 2, form 941 (or 941-X. No charge enforced if don't pay in needed social security taxes to the level you qualify for ERC i.e. if Employer A owes $20,000 in social security taxes but knows they will get approved for $12,000 in ERC credits in that quarter, they can select to only pay in $8,000 and will not deal with penalties for underpayment will declare the $12,000 credit on that quarters Form 941 3. Form 7200 Advance Payment of Employer Credits i.e. if Employer A owes $20,000 in social security taxes however understands they will get approved for a $25,000 in ERC credits in that quarter, they can pick not to pay in the SS taxes and can file a type 7200 to gather the remaining $5,000 in advance.

RESOURCES IRS FAQS HTTPS://WWW.IRS.GOV/NEWSROOM/FAQS-EMPLOYEE-RETENTIONCREDIT-UNDER-THE-CARES-ACT IRS NOTICE 2021-20 HTTPS://WWW.IRS.GOV/PUB/IRS-DROP/N-21-20.PDF IRS NOTICE 2021-23 HTTPS://WWW.IRS.GOV/PUB/IRS-DROP/N-21-23.PDF


Directory For Employee Retention Program Companies Available in Jackson Heights NY
Finance Pro Plus
WEBSITE:
https://www.financeproplus.com/
Bottom Line Concepts
WEBSITE:
https://erc.bottomlinesavings.com/
Equifax Workforce Solutions
WEBSITE: 
https://workforce.equifax.com/solutions/employee-retention-credit
Valiant Capital
WEBSITE: 
https://erc.valiant-capital.com/
Disisaster Loan Advisors
WEBSITE: 
https://www.disasterloanadvisors.com/
ERTC Filing
WEBSITE: 
https://info.ertcfiling.com/employee-retention-tax-credit-new-york-11368/
Adams Brown Strategic Allies and CPAs
WEBSITE: 
https://www.adamsbrowncpa.com/ertc-tax-credit-consulting-new-york/
NYC Business
WEBSITE: 
https://www1.nyc.gov/nycbusiness/article/nyc-employee-retention-grant-program
Omega Funding solutions
WEBSITE: 
https://www.omegafundingsolutions.com/
 

Frequently Asked Questions (FAQs)

What period does the program cover?

The program started on March 13th, 2020 and also right on September 30, 2021, for qualified employers.

You can make an application for reimbursements for 2020 as well as 2021 after December 31st of this year, into 2022 and 2023. As well as potentially beyond then too.

Many businesses have received refunds, and also others, along with refunds, also qualified to proceed obtaining ERC in every pay-roll they process to December 31, 2021, at about 30% of their payroll cost.

Some businesses 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, services can currently get approved for the ERC also if they currently obtained a PPP loan. Keep in mind, though, that the ERC will just apply to incomes not made use of for the PPP.

maintain a 20% decline in gross receipts .

A federal government authority needed complete or partial shutdown of your organization during 2020 or 2021. This includes your operations being limited by commerce, inability to take a trip or limitations of team conferences.

  • Gross receipt reduction criteria is different for 2020 and also 2021, yet is gauged against the present quarter as contrasted to 2019 pre-COVID quantities:

    • A federal government authority needed partial or full closure of your organization during 2020 or 2021. This includes your procedures being restricted by commerce, inability to take a trip or restrictions of group meetings.
    • Gross invoice reduction criteria is various for 2020 and 2021, however is determined versus the present quarter as compared to 2019 pre-COVID quantities.
Do we still qualify if we stayed open throughout the pandemic?

Yes. To certify, your organization should meet either one of the following criteria:

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

Numerous items are thought about as adjustments in business procedures, consisting of shifts in job duties and the purchase of added protective devices.