Levittown NY Employee Retention Grant Program
Simply to take you back a bit ,so you sort of remember what all has actually come down the last couple of years ppp was naturally the huge one that took all the air out of the room for a really very long time and which was the go-to credit that all these employers were going to get however you know in addition to the Economic Security program there was the cra which is the family's very first coronavirus response act. There were provisions in the CARES Act enabling deferral of work taxesif you benefited from of those deferments of the social security tax the first payment was due in December the 2nd fifty percent is going to be due December 31st 2022.
There was of course the employee retention credit however in the beginning with the cares act you could not get both pppand erc there was also a dining establishment revitalizationfund grant program there was the shuttered venue operators grant and even up until last December there was the catastrophe limit idle economic injury catastrophe loan so that's been sort of the covid era programs.
Just how It Works
Initially you couldn't get both the employee retention credit and ppp that was revealed in the languageof the cares act which was early 2020then came along the taxpayer certainty and disaster relief act of 2020 that was December 27th 2020 and that essentially stated hey simply kidding you actually can get the employee retention credit even if you got ppp we'll enter some details about what that appears like however that opened it up and it likewise extended erc into 2021 and so it wasn't just 2020.
In march after the change in administration there was the american rescue plan that really extended erc to the third and fourth quarters of 2021and introduced the concept ofa healing startup service which we'll get into and then simply to keep everybody on theirtoes november of 2021 congress passed the infrastructure financial investment jobs act and they said oh just kidding again you in fact can't get itfor the fourth quarter of 2021 unless you'rein the fourth quarter.
What we're talking about here is claiminga credit on your kind 941 so you understand you guys as companies or your customers as employers are filing forms 941 quarterly, that's reporting on the earnings that you've paid to your workers. It is then likewise self-assessing fica taxes which include social security and medicare, both the worker portion and the employer portion so that's the background and how this credit works.
It's the vehicle for how it works and we'll enter into some more specifics now so the employee retention credit is was again initially in the in the cares act and began in 2020 so for 2020an eligible employer was allowed a credit against applicable employment taxes equivalent to 50 percent of the certified earnings approximately 10 thousand dollars for the whole year for 2021 an eligible employer is enabled to credit versus the work taxes for each calendar quarter an amount equivalent as much as 70 of certified salaries as much as 10 000 with respect toeach employee for the calendar quarter for 20 protector 2021.
So what does this mean assuming you're qualified we'll get into eligibility later on, but the credit is for 2020 you can get up to five thousand dollars per worker, so in the beginning ppp was about as much as twenty thousand dollars per staff member, so ppp was way better. No one was taking note of erc since ifyou might get ppp why would you handle this, government credit that's going to take months and months to reimburse versus when you go to a bank and get paid within a couple weeks and get 20 grandper individual. It wasn't up until they altered it and increased the credit toabout 7 thousand, you understand as much as seven thousand dollars per staff member per calendar quarter for 2021 did people truly start looking at using both programs together so the most you can get per staff member is twenty six thousand dollars per employee if you are eligible for all of 2020 and three quarters of 2021.
About Employee Retention Grant Program
you paid to your employees, so it's generally rewarding you as an employer for keeping your people paid throughout the pandemic. If we say ten thousand dollars that's thereal wage and the the credit is computed based on the incomes paid, but it's refundable meaning you can go past zero back to your credit based upon employment taxes. It's alitle complicated lorry ppp they built on top of the existing 7a program with the sba and banks and all that sort of things this one is rooted in internal revenue code and the existing payroll structure soit's a bit wonky but that's what's going on here.
It's a credit associated with employment taxes, but it's based upon earnings
A qualified employer aneligible employer is an employer which is carrying on a trade or business during the calendar quarter for which the credit is figured out, and you need to certify either through a gross receipts test or a suspension slash partial suspension test. The gross invoices test is the easy one as the majority of people can lookat their receipts for 2020 and 2019and see if they went down, and by how much.So for 2020 gross receipts test was 50%of the gross receipts for the very same quarter in a calendar year in 2019.
So second quarter of 2020 is when most organizations have the most significant dip, you would compare it to 2019 if it went down 50 percent you're eligiblefor 2021. Part of this entire expansion of the erc they also made it much easier to get so rather of a 50% decrease all you need is a 20% decrease and that 20% decline is from 2021 quarter compared to 2019 2nd quarter 2021, and if you're down 20% you qualify.
If you have your gross receiptsreduced during this period of time you're eligible. You do not need to offer a reason as thereare alternative referral points for 2021 thatallow for automated qualification for additional quarters, so if q1 of 2021 you're down 20%you in fact immediately get approved for q2 aswell.
Why Employee Retention Grant Program?
Medical providers, food establishments, grocery stores, producers, all sorts of vital businesses, all these places were open. Like law firms, so it's simply a matter of did your business get restricted in someway due to the fact that of covid for a not small purpose.
It underwent numerous changes as well as has numerous technological details, including exactly how to establish competent earnings, which employees are qualified, and a lot more. Your service specific situation may need more extensive evaluation and analysis. The program is intricate as well as might leave you with many unanswered inquiries.
There are many Companies that can aid understand it all, that have actually dedicated specialists that will lead you, and also outline the steps you require to take so you can make best use of the application for your business.
Why Employee Retention Grant Program?
It undertook numerous changes and has numerous technological details, consisting of how to establish qualified salaries, which employees are qualified, and more. Your business certain situation could require even more intensive evaluation as well as evaluation. The program is complicated and also might leave you with many unanswered inquiries.
There are lots of Firms that can help understand it all, that have committed professionals that will assist you, and describe the actions you need to take so you can optimize the application for your company.
OBTAIN QUALIFIED ASSISTANCE
Just How to Begin
The best way is to deal with a no-risk, contingency-based expense financial savings firm. That will certainly negotiate in support of their clients to obtain the finest prices feasible for their existing clients. They will audit old billings for mistakes getting their customers refunds and also tax credits. They can increase the productivity and also overall assessment of their clients organizations.
Assistance offered can include:
Extensive assessment concerning your eligibility
Thorough evaluation of your claim
Advice on the claiming procedure and also documents
Certain program proficiency that a routine CPA or pay-roll cpu might not be well-versed in
Fast and smooth end-to-end process, from qualification to declaring as well as getting reimbursements
Committed specialists that will certainly analyze highly intricate program rules and also will be offered to address your concerns, including:
Just how does the PPP finance aspect into the ERC?
What are the distinctions in between the 2020 as well as 2021 programs and exactly how does it relate to your business?
What are aggregation policies for bigger, multi-state companies, and how do I analyze numerous states executive orders?
Exactly how do part-time, Union, and also tipped staff members influence the amount of my reimbursements?
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Ready To Get Begun? Its Simple.
1. Whichever business you select to work with will certainly figure out whether your company qualifies for the ERC.
2. They will assess your claim as well as compute the optimum quantity you can obtain.
3. Their team guides you with the asserting process, from starting to finish, including proper documentation.
Frequently Asked Questions (FAQs)
What duration does the program cover?
The program started on March 13th, 2020 and right on September 30, 2021, for qualified businesses.
You can get refunds for 2020 and also 2021 after December 31st of this year, right into 2022 and also 2023. As well as potentially beyond after that as well.
Many services have received reimbursements, as well as others, in addition to reimbursements, also certified to continue receiving ERC in every pay-roll they process to December 31, 2021, at about 30% of their pay-roll expense.
Some companies have actually gotten refunds from $100,000 to $6 million.
Do we still qualify if we currently took the PPP?
Yes. Under the Consolidated Appropriations Act, services can currently receive the ERC also if they already received a PPP lending. Keep in mind, though, that the ERC will just apply to earnings not made use of for the PPP.
Do we still certify if we did not incur a 20% decline in gross invoices .
A federal government authority needed full or partial shutdown of your service throughout 2020 or 2021. This includes your operations being limited by business, lack of ability to travel or constraints of group conferences.
- Gross receipt reduction criteria is different for 2020 and 2021, yet is determined versus the existing quarter as contrasted to 2019 pre-COVID amounts:
- A government authority called for partial or full closure of your service during 2020 or 2021. This includes your operations being limited by commerce, inability to travel or restrictions of group meetings.
- Gross invoice decrease criteria is different for 2020 and 2021, yet is measured against the existing quarter as contrasted to 2019 pre-COVID quantities.
Do we still qualify if we stayed open throughout the pandemic?
Yes. To certify, your business must fulfill either among the complying with requirements:
- Experienced a decrease in gross receipts by 20%, or
- Had to change organization procedures as a result of government orders
Lots of things are taken into consideration as adjustments in business procedures, consisting of changes in job functions and the acquisition of extra protective equipment.