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Jackson Heights NY Employee Retention Tax Credit Reinstatement Act




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.

How It Works

This is huge, a great deal of small company owners don't understand about this, or they've found out about it, but they do not understand much about it, even lots of tax specialists do not understand the ins and outs of this thing due to the fact that it's new and a lot of these changes

that are helpful to company owner happened in the middle of tax season. In this video I'm going to dig into the employee retention credit, why it's so lucrative now in 2021, more profitable, far more rewarding, in fact now than it was in 2020, 5x more profitable at least. So even if you do not own an organization, make certain to share this video with company owner you know, this video might actually deserve 10s of thousands of dollars for them. And if you are an entrepreneur and after you view this video you want to talk with me and a member of my team, who will likewise be either a CPA like myself or an EA, shoot me an e-mail, [email protected], tell me a little about your business and your ballpark year-over-year profits, and let's see if we can get some more refund in your pocket because you can take this credit against your payroll taxes you pay by lowering your required employment 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.
 


I am not going to get into the intricacies of that type here or the Form 941 and all the payroll things because that's the stuff your CPA ought to stress over. 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 situations, of your organization's tax scenario to generate more money circulation in your organization and more wealth for yourself.
 

 


 

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About Employee Retention Tax Credit Reinstatement Act

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 state that absolutely nothing in this video is to be taken as legal or tax recommendations, this video is for basic educational purposes only, yes, I am a CPA and a tax professional, but I am not your CPA nor your tax expert unless you have engaged my firm. Another disclaimer here, for functions of this video I am assuming that if you're viewing this you are a small service owner, which for employee retention credit functions indicates one hundred or fewer workers for purposes of the 2020 credit and 5 hundred or less staff members for functions of the 2021 credit, if you have a company with over 5 hundred workers I imagine you have in-house counsel, in-house CPAs who are on top of this stuff, however I'm here for you small company owners who may work with a regional tax specialist who is so neck-deep in income tax return right now since the federal government extended the tax deadline to May 17 or volume is just the nature of their business that your tax specialist hasn't had the time to go into the weeds here like I have.

So employee retention credit, why is it so rewarding for service owners in 2021 and why weren't we discussing it in 2020, it's been around given that then, because the CARES Act? Why is it getting all this buzz now that it wasn't in 2015? Well, let's back it up. Yes, the employee retention credit has been around because the CARES Act that was passed over a year ago in March 2020, but the employee retention credit didn't get much love in 2015 in 2020 due to the fact that of the PPP, the Paycheck Protection Program. Originally, in 2020, if you got a PPP loan as a company, you were not qualified for the employee retention credit.

Essentially the employee retention credit had a glow-up in between 2020 and 2021, it went from the nerdy lady with unkempt eyebrows and thick glasses and her hair up in 2020 to the belle of the ball for service 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 Tax Credit Reinstatement Act

Factor, the employee retention credit for both 2020 and 2021 is now readily available to PPP receivers, but of course you can't double dip. You can't get PPP for the hundred thousand dollars you paid your staff members and then reverse and declare the employee retention credit on those wages as well. The 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 federal government on those incomes that the government paid for you. That makes sense. Now, there's some preparation here. If you got PPP and you are qualified for the employee retention credit, then when you do your PPP forgiveness application, you require to pick the very best covered duration that will get you full PPP forgiveness but also optimize your employee retention credit.



Likewise, for PPP forgiveness, you wish to fill up that payroll pail with as numerous costs as possible that don't count for employee retention credit functions. You can't declare the employee retention credit on state unemployment insurance contributions, however state joblessness insurance contributions count towards PPP forgiveness, see? So you 'd want to dump all your state unemployment insurance contributions on your PPP forgiveness application to leave as much normal earnings as possible to take the employee retention credit on.

This can get very technical really fast and it's very scenario particular in terms of enhancing PPP vs. ERC and my firm has tools to figure this stuff out for you, I'm not going to dig into all that here, however simply know that you really have to do the math when doing your PPP forgiveness to make sure you're not leaving anything on the table in terms of the employee retention credit. Another thing to note is you can't subtract the earnings you claimed the employee retention credit on, which makes good sense as well, why should the federal government offer you a deduction for these salaries that they currently provided you a credit for? Basically the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I just enjoy discussing this stuff, but let's speak about another reason the employee retention credit is more appealing now than it was in 2015, which is that it's much easier to get approved for the employee retention credit in 2021. In 2020, for a quarter to get approved for the employee retention credit, you had to reveal a 50% decrease in gross receipts compared to the very same calendar quarter in 2019.

However in 2021, for a quarter to certify for the employee retention credit, you only need to reveal a 20% decrease in gross receipts compared to the very same calendar quarter in 2019. This means far more organizations will qualify. My organization, for example, experienced a 26% decline in gross invoices, comparing Q1 2019 to Q1 2021, and it was a comparable story in 2015 too.

I didn't qualify for the 2020 employee retention credit first, since I got first round of PPP money and 2nd because my service 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 organization certifies. 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 invoices, you can compare for purposes of determining eligibility for the employee retention credit for Q1 2021, you can compare Q4 2020 to Q4 2019. Ramification here is that if you receive Q1 2021 based upon Q1 2021's gross invoices, you will also get approved for Q2 2021 considering that you certified in the lookback quarter of Q1 2021.

Same thing for Q2 to Q3 and Q3 to Q4, so basically if you just certify for Q1 and Q3 2021, you also get approved for Q2 and Q4 based on the lookback. Even if you didn't have an enough decrease in income, you can qualify for the employee retention credit if you were required to fully or partly suspend operations in your business 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 full shutdown.

Common example, you own a restaurant, and your guv signed an executive order specifying that you require to shut down indoor dining. That is an example of a partial shutdown. Not only are more companies 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 same wages and making more companies eligible through the 20% decrease threshold rather than the 50% decline limit, but the 2021 credit is also more lucrative than the 2020 credit.

Not bad, but 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 employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in earnings per worker ... for that entire time duration? 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 employee per quarter, so we're talking about an optimum credit of $7,000 per worker per quarter. That's right, folks, the optimum 2021 employee retention credit is $28,000 per worker.


If you got PPP and you are qualified for the employee retention credit, then when you do your PPP forgiveness application, you need to select the finest covered period that will get you complete PPP forgiveness but likewise optimize your employee retention credit.



Alright, sorry for getting a little sidetracked there, I simply enjoy talking about this things, 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 simpler to certify for the employee retention credit in 2021. I didn't qualify for the 2020 employee retention credit initially, due to the fact that I got first round of PPP cash and 2nd since my service didn't suffer that big 50% decrease needed to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my business qualifies. Not only are more companies qualified for the employee retention credit thanks to these brand-new laws, making PPP recipients qualified for the employee retention credit though not on the same earnings and making more organizations 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, but that's nothing compared to the 2021 credit since for 2021, the credit is equal to 70% of certified salaries per staff member paid from January 1, 2021 through December 31, 2021, limited to $10,000 in salaries per worker ... for that entire time duration?


           

Just How to Get going

The very best means is to deal with a no-risk, contingency-based expense savings business. That will bargain in behalf of their customers to get the ideal rates feasible for their existing customers. They will examine old billings for errors obtaining for their customers reimbursements and also credits. They can boost the success and also overall valuation of their customers companies.

                                                                                                                                                                                                                    

Solutions supplied can include:  
 

Dedicated experts that will analyze very intricate program guidelines and also will be offered to address your questions, including:

How does the PPP finance element right into the ERC?

What are the differences in between the 2020 and also 2021 programs and also exactly how does it apply to your service?

What are gathering policies for larger, multi-state companies, and also how do I translate several states executive orders?

How do part-time, Union, as well as tipped employees impact the amount of my refunds?




Thorough examination regarding your qualification

Extensive analysis of your case

Support on the declaring process as well as documentation

Specific program expertise that a regular CPA or pay-roll processor could not be well-versed in

Smooth and fast end-to-end process, from eligibility to claiming and also obtaining refunds


 


 
Directory For Employee Retention Tax Credit Reinstatement Act Companies Available in Jackson Heights NY
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 Going? Its Simple.
1. Whichever business you choose  to work with will identify whether your organization certifies and gets approvel for the ERC.

2. They will certainly evaluate your claim and calculate the optimum amount you can get.

3. Their group guides you through the declaring procedure, from beginning to finish, including correct documents.

Frequently Asked Questions (FAQs)

What period does the program cover?

The program began on March 13th, 2020 as well as ends on September 30, 2021, for eligible employers.

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

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

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

Yes. Under the Consolidated Appropriations Act, services can now get approved for the ERC even if they already obtained a PPP finance. Note, however, that the ERC will just use to incomes not utilized for the PPP.

sustain a 20% reduction in gross invoices .

A government authority required partial or complete closure of your organization throughout 2020 or 2021. This includes your operations being restricted by commerce, lack of ability to travel or constraints of group conferences.

  • Gross receipt decrease standards is different for 2020 as well as 2021, but is determined versus the existing quarter as contrasted to 2019 pre-COVID amounts:

    • A government authority needed partial or complete closure of your service throughout 2020 or 2021. This includes your operations being restricted by business, lack of ability to travel or restrictions of team meetings.
    • Gross invoice decrease criteria is different for 2020 as well as 2021, yet is measured versus the present quarter as compared to 2019 pre-COVID quantities.
Do we still certify if we remained open throughout the pandemic?

Yes. To qualify, your organization must meet either one of the complying with requirements:

  • Experienced a decrease in gross receipts by 20%, or
  • Needed to transform organization operations due to federal government orders

Many items are taken into consideration as modifications in business procedures, consisting of changes in task functions and the acquisition of added safety devices.