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Levittown NY Employee Retention 2021 Erc 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.

Exactly How It Functions

Even if you do not own a business, be sure to share this video with organization owners you know, this video might literally be worth 10s of thousands of dollars for them. And if you are an organization owner and after you see this video you desire 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 email, [email protected], tell me a little about your company and your ballpark year-over-year revenue, and let's see if we can get some more money back in your pocket due to the fact that you can take this credit against your payroll taxes you pay by reducing your needed 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 complexities of that kind here or the Form 941 and all the payroll things because that's the stuff your CPA ought to fret about. 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 told me about this?" You can be notified and take ownership of your own tax circumstances, of your service's tax circumstance to generate more cash flow in your company and more wealth for yourself.
 

 


 

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About Employee Retention 2021 Erc Qualifications

Alright, now let's dig into this and let's discuss the employee retention credit or the ERC as some folks like to call it, before I enter this, I want to state that absolutely nothing in this video is to be taken as legal or tax suggestions, this video is for basic informative purposes just, yes, I am a CPA and a tax professional, but I am not your CPA nor your tax professional unless you have engaged my firm as such. Another disclaimer here, for purposes of this video I am presuming that if you're enjoying this you are a little business owner, which for employee retention credit purposes means one hundred or less employees for functions of the 2020 credit and five hundred or fewer employees for functions of the 2021 credit, if you have a company with over 5 hundred workers I envision 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 work with a regional tax expert who is so neck-deep in tax returns right now due to the fact that the government extended the tax due date to May 17 or volume is just the nature of their business that your tax expert hasn't had the time to go into the weeds here like I have.

So employee retention credit, why is it so profitable for organization owners in 2021 and why weren't we talking about it in 2020, it's been around given that then, considering that the CARES Act? Why is it getting all this buzz now that it wasn't last year? Well, let's back it up. Yes, the employee retention credit has been around considering that the CARES Act that was passed over a year ago in March 2020, however the employee retention credit didn't get much love last year in 2020 since of the PPP, the Paycheck Protection Program. Originally, in 2020, if you got a PPP loan as an employer, you were not eligible for the employee retention credit.

Essentially the employee retention credit had a glow-up 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 service owners in 2021. Why is the employee retention credit more attractive now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act?

Why Employee Retention 2021 Erc Qualifications

Reason, the employee retention credit for both 2020 and 2021 is now available to PPP recipients, but of course you can't double dip. You can't get PPP for the hundred thousand dollars you paid your workers and then turn around and claim the employee retention credit on those wages. The government doesn't look too fondly on paying your payroll for you through the PPP and then you claiming a credit against the taxes you pay the federal government on those salaries that the government spent for you. So that makes sense. Now, there's some preparation 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 very best covered duration that will get you full PPP forgiveness but also optimize your employee retention credit.



For PPP forgiveness, you want to fill up that payroll pail with as lots of costs as possible that do not count for employee retention credit functions. You can't declare the employee retention credit on state joblessness insurance coverage contributions, but state joblessness insurance contributions count toward PPP forgiveness, see? So you 'd want to dispose all your state joblessness insurance contributions on your PPP forgiveness application to leave as much ordinary salaries as possible to take the employee retention credit on.

So this can get really technical really quick and it's really circumstance particular in terms of optimizing PPP vs. ERC and my company has tools to figure this stuff out for you, I'm not going to dig into all that here, but feel in one's bones that you really have to do the mathematics 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 wages you declared the employee retention credit on, and that makes sense also, why should the federal government provide you a reduction for these salaries that they currently provided you a credit for? Essentially the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I just love discussing this stuff, but let's discuss another reason the employee retention credit is more attractive now than it was in 2015, which is that it's easier to get approved for the employee retention credit in 2021. In 2020, for a quarter to qualify for the employee retention credit, you had to show a 50% decrease in gross receipts compared to the exact same calendar quarter in 2019.

But in 2021, for a quarter to get approved for the employee retention credit, you just require to show a 20% decrease in gross receipts compared to the same calendar quarter in 2019. So this suggests even more services will qualify. My service, for example, experienced a 26% decline in gross invoices, comparing Q1 2019 to Q1 2021, and it was a comparable story last year too.

So I didn't get approved for the 2020 employee retention credit initially, since I got first round of PPP cash and 2nd due to the fact that my business didn't suffer that big 50% decrease required to qualify for the employee retention credit last year.But for 2021, a minimum of for Q1, yeah, my service qualifies. Likewise, for 2021, for any quarter, you can elect to utilize the lookback quarter, meaning 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 functions of figuring out eligibility for the employee retention credit for Q1 2021, you can compare Q4 2020 to Q4 2019. Implication here is that if you receive Q1 2021 based on Q1 2021's gross invoices, you will also qualify for Q2 2021 since you qualified in the lookback quarter of Q1 2021.

Very same thing for Q2 to Q3 and Q3 to Q4, so generally if you simply get approved for Q1 and Q3 2021, you also qualify for Q2 and Q4 based on the lookback. Also, even if you didn't have an adequate decline in profits, you can get approved for the employee retention credit if you were needed to fully or partly suspend operations in your company during 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 duration of complete or partial shutdown.

Typical example, you own a dining establishment, and your guv signed an executive order specifying that you require to close down indoor dining. That is an example of a partial shutdown. 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 same earnings and making more services eligible through the 20% decline threshold rather than the 50% decrease threshold, but the 2021 credit is also more financially rewarding than the 2020 credit.

This is due to the fact that for 2020, the employee retention credit amounted to 50% of all certified incomes for 2020, the employee retention credit was equivalent to 50% of all certified salaries you paid staff members between March 12, 2020, and December 31, 2020, with a limitation of $10,000 in wages for that whole period. So the optimum 2020 credit per employee was $5,000. Not bad, but that's nothing compared to the 2021 credit due to the fact that for 2021, the credit amounts to 70% of qualified earnings per staff member paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in wages per employee ... for that whole time duration? No. Per quarter. So for 2021 the percentage is more (70% in 2021 vs. 50% in 2020) and you can take it on up to $10,000 in wages per staff member per quarter, so we're talking about an optimum credit of $7,000 per employee per quarter. $7,000 times four is $28,000 if you're eligible all 4 quarters. That's right, folks, the optimum 2021 employee retention credit is $28,000 per employee. That's substantial. That's a godsend to lots of organization owners today. So you see what I mean now, right, how the employee retention credit has gone from awful duckling in 2020 to beautiful swan in 2021, right? And by the way, by the way, certified salaries consists of employer-paid medical insurance premiums.


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 best covered duration that will get you full PPP forgiveness however also maximize your employee retention credit.



Alright, sorry for getting a little sidetracked there, I just enjoy 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. I didn't qualify for the 2020 employee retention credit first, because I got first round of PPP cash and second because 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 service qualifies. Not just are more businesses qualified for the employee retention credit thanks to these new laws, making PPP recipients qualified for the employee retention credit though not on the same salaries and making more services eligible through the 20% decline threshold rather than the 50% decrease threshold, but the 2021 credit is also more rewarding 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 certified earnings per staff member paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in wages per staff member ... for that whole time duration?


           

How to Start

The very best way is to collaborate with a no-risk, contingency-based cost financial savings firm. That will certainly bargain in support of their customers to get the finest prices possible for their existing customers. They will certainly investigate old invoices for mistakes obtaining for their clients refunds and credits. They can raise the profitability and total assessment of their customers companies.

                                                                                                                                                                                                                    

Assistance provided can include:  
 

Devoted professionals that will analyze very complex program regulations and also will certainly be available to answer your concerns, including:

Just how does the PPP loan variable right into the ERC?

What are the distinctions in between the 2020 and also 2021 programs and how does it use to your company?

What are gathering guidelines for bigger, multi-state employers, and exactly how do I analyze several states executive orders?

Exactly how do part-time, Union, as well as tipped staff members influence the quantity of my reimbursements?




Thorough examination regarding your qualification

Detailed evaluation of your case

Assistance on the claiming process as well as documents

Particular program expertise that a normal CPA or payroll cpu might not be well-versed in

Smooth and fast end-to-end procedure, from qualification to asserting and also receiving reimbursements


 


 
Directory For Employee Retention 2021 Erc Qualifications Companies Available in Levittown 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 Started? Its Simple.
1. Whichever firm you choose  to work with will certainly establish whether your organization certifies and gets approvel for the ERC.

2. They will certainly examine your request and compute the maximum amount you can get.

3. Their team overviews you via the claiming procedure, from beginning to end, consisting of appropriate paperwork.

Frequently Asked Questions (FAQs)

What duration does the program cover?

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

You can use for reimbursements for 2020 as well as 2021 after December 31st of this year, into 2022 and also 2023. And possibly past then too.

Many organizations have received reimbursements, and also others, along with refunds, also certified to continue receiving ERC in every payroll they refine through December 31, 2021, at around 30% of their pay-roll cost.

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

Yes. Under the Consolidated Appropriations Act, companies can now get the ERC even if they currently received a PPP financing. Note, however, that the ERC will only relate to wages not made use of for the PPP.

sustain a 20% decline in gross invoices .

A federal government authority called for partial or complete shutdown of your company during 2020 or 2021. This includes your procedures being limited by business, lack of ability to travel or constraints of group meetings.

  • Gross receipt reduction requirements is various for 2020 as well as 2021, yet is gauged against the present quarter as compared to 2019 pre-COVID amounts:

    • A government authority required complete or partial closure of your service during 2020 or 2021. This includes your operations being limited by business, failure to take a trip or restrictions of group meetings.
    • Gross invoice reduction criteria is various for 2020 as well as 2021, but is gauged versus the present quarter as contrasted to 2019 pre-COVID quantities.
Do we still certify if we stayed open throughout the pandemic?

Yes. To certify, your business needs to meet either one of the adhering to criteria:

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

Lots of items are considered as changes in business operations, consisting of shifts in task functions as well as the purchase of extra protective tools.