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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 offered can include:
Dedicated experts that will interpret very intricate program rules as well as will be offered to answer your concerns, including:
What duration does the program cover?
Levittown NY Employee Retention Ertc Credit
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 Works
Even if you do not own a company, be sure to share this video with business owners you know, this video could literally be worth 10s of thousands of dollars for them. And if you are a service owner and after you see this video you desire to talk with me and a member of my team, who will also be either a CPA like myself or an EA, shoot me an e-mail, [email protected], inform me a little about your company and your ballpark year-over-year earnings, and let's see if we can get some more cash back in your pocket because you can take this credit against your payroll taxes you pay by minimizing your needed employment tax deposits or you can ask for an advance payment of the credit using IRS Form 7200, Advance Payment of Employer Credits Due to COVID-19.
I am not going to get into the complexities of that type here or the Form 941 and all the payroll stuff since that's the things your CPA ought to fret about. In this video I desire to tell 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?" so you can be notified and take ownership of your own tax circumstances, of your business's tax scenario to generate more capital in your service and more wealth on your own.
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About Employee Retention Ertc Credit
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 nothing in this video is to be taken as legal or tax suggestions, this video is for basic educational functions just, yes, I am a tax and a cpa professional, but I am not your CPA nor your tax expert unless you have engaged my company. Another disclaimer here, for functions of this video I am presuming that if you're enjoying this you are a small company owner, which for employee retention credit functions suggests one hundred or fewer employees for purposes of the 2020 credit and five hundred or fewer staff members for functions of the 2021 credit, if you have a company with over 5 hundred employees I imagine you have in-house counsel, in-house CPAs who are on top of this stuff, but I'm here for you little business owners who may deal with a local tax professional who is so neck-deep in tax returns right now because the government extended the tax deadline to May 17 or volume is just the nature of their organization that your tax professional hasn't had the time to dig into the weeds here like I have.
So employee retention credit, why is it so lucrative for organization owners in 2021 and why weren't we talking about it in 2020, it's been around because then, given that 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 actually been around because the CARES Act that was passed over a year ago in March 2020, however the employee retention credit didn't get much love in 2015 in 2020 because of the PPP, the Paycheck Protection Program. Initially, in 2020, if you received a PPP loan as a company, you were not qualified for the employee retention credit.
However the stimulus expense passed in December, the Consolidated Appropriations Act, along with the American Rescue Plan Act, passed in February 2021, made changes to the ERC making it far more attractive. Basically the employee retention credit had a glow-up between 2020 and 2021, it went from the unpopular girl with thick glasses and neglected eyebrows and her hair up in 2020 to the belle of the ball for organization owners in 2021. Why? Why is the employee retention credit more appealing now thanks to the Consolidated Appropriations Act and the American Rescue Plan Act? I'll inform you why, a couple of factors.
Why Employee Retention Ertc Credit
First reason, the employee retention credit for both 2020 and 2021 is now offered to PPP recipients, but naturally you can't double dip. You can't get PPP for the hundred thousand dollars you paid your staff members and after that reverse and declare the employee retention credit on those salaries too. The government doesn't look too fondly on paying your payroll for you through the PPP and after that you claiming a credit against the taxes you pay the government on those incomes that the government spent for you. So that makes sense. Now, there's some planning 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 select the finest covered duration that will get you full PPP forgiveness however likewise maximize your employee retention credit.
Also, for PPP forgiveness, you wish to fill that payroll pail with as numerous costs as possible that don't count for employee retention credit purposes. You can't declare the employee retention credit on state unemployment insurance coverage contributions, but state unemployment insurance contributions count towards PPP forgiveness, see? So you 'd wish to dispose all your state unemployment insurance coverage contributions on your PPP forgiveness application to leave as much normal salaries as possible to take the employee retention credit on.
Another thing to note is you can't subtract the salaries you declared the employee retention credit on, and that makes sense as well, why should the federal government give you a reduction for these incomes that they already gave you a credit for? Alright, sorry for getting a little sidetracked there, I just love talking about this stuff, however let's talk about another reason why the employee retention credit is more attractive now than it was last year, and that is that it's simpler to certify for the employee retention credit in 2021.
In 2021, for a quarter to certify for the employee retention credit, you only require to reveal a 20% decline in gross invoices compared to the same calendar quarter in 2019. So this indicates much more organizations will certify. My company, for example, experienced a 26% decrease in gross invoices, comparing Q1 2019 to Q1 2021, and it was a similar story last year too.
So I didn't certify for the 2020 employee retention credit first, because I got first round of PPP money and 2nd because my service didn't suffer that large 50% decline needed to receive the employee retention credit last year.But for 2021, a minimum of for Q1, yeah, my organization certifies. Also, for 2021, for any quarter, you can choose to use the lookback quarter, suggesting 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 determining eligibility for the employee retention credit for Q1 2021, you can compare Q4 2020 to Q4 2019. Implication here is that if you get approved for Q1 2021 based upon Q1 2021's gross receipts, you will also certify 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 essentially if you simply qualify for Q1 and Q3 2021, you also certify for Q2 and Q4 based upon the lookback. Likewise, even if you didn't have a sufficient decrease in earnings, you can get approved for the employee retention credit if you were needed to completely or partially suspend operations in your service during any calendar quarter in 2020 or 2021 due to state or federal orders, in which case you are qualified for the employee retention credit throughout that duration of full or partial shutdown.
Common example, you own a dining establishment, and your guv signed an executive order stating that you require to shut down indoor dining. That is an example of a partial shutdown. Also, not only are more services qualified for the employee retention credit thanks to these new laws, making PPP recipients eligible for the employee retention credit though not on the same earnings and making more services eligible through the 20% decrease limit rather than the 50% decrease threshold, but the 2021 credit is also more rewarding than the 2020 credit.
This is since for 2020, the employee retention credit was equal to 50% of all qualified incomes for 2020, the employee retention credit amounted to 50% of all qualified incomes you paid employees between March 12, 2020, and December 31, 2020, with a limit of $10,000 in incomes for that entire period. The maximum 2020 credit per staff member was $5,000. Not bad, however that's nothing compared to the 2021 credit because for 2021, the credit amounts to 70% of qualified salaries per employee paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per worker ... for that entire time period? No. Per quarter. For 2021 the portion 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. If you're eligible all 4 quarters, $7,000 times four is $28,000. That's right, folks, the maximum 2021 employee retention credit is $28,000 per employee. That's huge. That's a blessing to lots of company owners right now. So you see what I indicate now, right, how the employee retention credit has gone from unsightly duckling in 2020 to stunning swan in 2021, right? And by the way, by the method, certified incomes includes employer-paid medical insurance premiums.
If you got PPP and you are eligible for the employee retention credit, then when you do your PPP forgiveness application, you require to pick the best covered period that will get you full PPP forgiveness but also optimize 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 reason why the employee retention credit is more appealing 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 first, since I got very first round of PPP money and second because my service didn't suffer that big 50% decline needed to certify for the employee retention credit last year.But for 2021, at least for Q1, yeah, my company qualifies. Not only are more organizations 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 wages and making more businesses eligible through the 20% decrease threshold rather than the 50% decrease limit, however the 2021 credit is also more lucrative than the 2020 credit.
Not bad, however that's absolutely nothing compared to the 2021 credit due to the fact that for 2021, the credit is equivalent to 70% of certified incomes per worker paid from January 1, 2021 through December 31, 2021, limited to $10,000 in wages per employee ... for that whole time period?
Just How to Get going
The best means is to work with a no-risk, contingency-based cost financial savings firm. That will certainly bargain in behalf of their customers to get the finest costs possible for their existing clients. They will certainly investigate old billings for mistakes getting their customers reimbursements and also credits. They can enhance the success and general appraisal of their customers organizations.
Services offered can include:
Dedicated experts that will interpret very intricate program rules as well as will be offered to answer your concerns, including:
How does the PPP financing variable into the ERC?
What are the differences in between the 2020 and also 2021 programs and also how does it relate to your service?
What are aggregation policies for larger, multi-state companies, and also how do I analyze several states executive orders?
How do part-time, Union, as well as tipped staff members influence the quantity of my reimbursements?
Comprehensive examination regarding your qualification
Detailed evaluation of your claim
Assistance on the claiming procedure and paperwork
Certain program knowledge that a normal certified public accountant or payroll processor could not be well-versed in
Quick as well as smooth end-to-end process, from eligibility to declaring as well as receiving reimbursements
| 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/ |
Ready To Get Going? Its Simple.
1. Whichever firm you select to work with will determine whether your organization certifies for the ERC.
2. They will examine your case and calculate the optimum amount you can receive.
3. Their team guides you through the asserting procedure, from starting to end, including correct documentation.
Frequently Asked Questions (FAQs)
What duration does the program cover?
The program started on March 13th, 2020 as well as finishes on September 30, 2021, for eligible employers.
You can get refunds for 2020 as well as 2021 after December 31st of this year, into 2022 and 2023. And potentially beyond after that also.
Many companies have received refunds, and others, in addition to reimbursements, also certified to proceed obtaining ERC in every pay-roll they refine to December 31, 2021, at around 30% of their payroll cost.
Some services have actually received reimbursements from $100,000 to $6 million.
Do we still certify if we already took the PPP?
Yes. Under the Consolidated Appropriations Act, organizations can now certify for the ERC also if they already got a PPP funding. Keep in mind, though, that the ERC will just apply to incomes not made use of for the PPP.
Do we still certify if we did not) sustain a 20% decrease in gross invoices .
A government authority needed full or partial closure of your organization during 2020 or 2021. This includes your operations being limited by business, inability to take a trip or limitations of group meetings.
- Gross invoice reduction standards is various for 2020 and also 2021, yet is measured versus the existing quarter as contrasted to 2019 pre-COVID quantities:
- A government authority called for full or partial shutdown of your company throughout 2020 or 2021. This includes your operations being restricted by business, failure to travel or limitations of group conferences.
- Gross invoice decrease standards is various for 2020 and also 2021, but is measured against the present quarter as compared to 2019 pre-COVID amounts.
Do we still qualify if we stayed open during the pandemic?
Yes. To certify, your business must fulfill either one of the adhering to standards:
- Experienced a decline in gross invoices by 20%, or
- Needed to change company operations because of federal government orders
Lots of products are thought about as adjustments in service operations, including changes in task roles and the acquisition of additional protective devices.