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Mount Vernon NY Employee Retention Tax Credit And Ppp




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

This is huge, a lot of small business owners don't understand about this, or they've found out about it, but they don't understand much about it, even numerous tax specialists don't understand the ins and outs of this thing since it's new and a lot of these modifications

that are advantageous to entrepreneur happened in the middle of tax season. In this video I'm going to dig into the employee retention credit, why it's so financially rewarding now in 2021, more profitable, far more rewarding, in truth now than it was in 2020, 5x more rewarding at least. So even if you do not own an organization, be sure to share this video with entrepreneur you know, this video might literally be worth 10s of thousands of dollars for them. And if you are an entrepreneur and after you see this video you desire to talk with me and a member of my group, who will likewise be either a CPA like myself or an EA, shoot me an email, [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 cash back in your pocket since you can take this credit against your payroll taxes you pay by minimizing your needed work 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 form here or the Form 941 and all the payroll stuff 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 say, "Hey, what about this employee retention credit, why have not you informed me about this?" so you can be informed and take ownership of your own tax circumstances, of your company's tax situation to produce more money circulation in your organization and more wealth on your own.
 

 


 

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About Employee Retention Tax Credit And Ppp

Alright, now let's go into this and let's speak about the employee retention credit or the ERC as some folks like to call it, prior to I enter this, I desire to say that nothing in this video is to be taken as legal or tax advice, this video is for basic informational purposes just, yes, I am a CPA and a tax professional, however I am not your CPA nor your tax expert unless you have actually engaged my company as such. Another disclaimer here, for purposes of this video I am assuming that if you're viewing this you are a small service owner, which for employee retention credit purposes suggests one hundred or fewer staff members for purposes of the 2020 credit and five hundred or less employees for purposes of the 2021 credit, if you have a business with over 5 hundred employees I envision you have in-house counsel, in-house CPAs who are on top of this things, however I'm here for you small company owners who might deal with a local tax expert who is so neck-deep in tax returns right now since the federal government extended the tax deadline to May 17 or volume is simply the nature of their business that your tax expert hasn't had the time to dig into the weeds here like I have.

So employee retention credit, why is it so lucrative for entrepreneur in 2021 and why weren't we discussing it in 2020, it's been around ever since, since 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 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 in 2015 in 2020 due to the fact that of the PPP, the Paycheck Protection Program. Originally, in 2020, if you received a PPP loan as a company, you were not qualified for the employee retention credit.

Essentially the employee retention credit had a glow-up between 2020 and 2021, it went from the nerdy lady with thick glasses and unkempt eyebrows 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 Tax Credit And Ppp

Reason, the employee retention credit for both 2020 and 2021 is now available to PPP receivers, however of course you can't double dip. You can't get PPP for the hundred thousand dollars you paid your staff members and then turn around and claim the employee retention credit on those salaries. 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 period that will get you full PPP forgiveness however likewise maximize your employee retention credit.



For PPP forgiveness, you want to fill up that payroll container with as numerous expenses as possible that do not count for employee retention credit purposes. For example, you can't declare the employee retention credit on state joblessness insurance contributions, however state joblessness insurance contributions count toward PPP forgiveness, see? 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 really technical very quick and it's extremely situation particular in terms of enhancing 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, however simply understand that you truly 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 incomes you claimed the employee retention credit on, and that makes sense too, why should the government offer you a deduction for these earnings that they currently provided you a credit for? Basically the credit is tax-effected. Alright, sorry for getting a little sidetracked there, I just like speaking about this stuff, however let's talk about another reason that the employee retention credit is more appealing now than it was last year, which is that it's simpler to get approved for the employee retention credit in 2021. In 2020, for a quarter to receive the employee retention credit, you needed to reveal a 50% reduction in gross receipts compared to the same calendar quarter in 2019.

In 2021, for a quarter to qualify for the employee retention credit, you just require to show a 20% decline in gross invoices compared to the very same calendar quarter in 2019. So this means much more businesses will qualify. My company, for instance, experienced a 26% decline in gross invoices, comparing Q1 2019 to Q1 2021, and it was a similar story in 2015 too.

So I didn't certify for the 2020 employee retention credit first, since I got preliminary of PPP money and second due to the fact that my company didn't suffer that large 50% decrease required to receive the employee retention credit last year.But for 2021, a minimum of for Q1, yeah, my organization qualifies. For 2021, for any quarter, you can elect to use 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 receipts, you can compare for functions 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 get approved for Q1 2021 based upon Q1 2021's gross invoices, you will likewise qualify for Q2 2021 because you certified in the lookback quarter of Q1 2021.

Exact same thing for Q2 to Q3 and Q3 to Q4, so basically if you simply receive Q1 and Q3 2021, you likewise get approved for Q2 and Q4 based on the lookback. Also, even if you didn't have an adequate decrease in profits, you can receive the employee retention credit if you were needed to totally or partially suspend operations in your organization 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 partial or complete shutdown.

Typical example, you own a restaurant, and your guv signed an executive order mentioning that you need to shut down indoor dining. That is an example of a partial shutdown. Likewise, not only are more businesses qualified for the employee retention credit thanks to these brand-new laws, making PPP receivers eligible for the employee retention credit though not on the same incomes and making more organizations eligible through the 20% decline limit instead of the 50% decrease limit, however the 2021 credit is also more lucrative than the 2020 credit.

This is because for 2020, the employee retention credit amounted to 50% of all qualified wages for 2020, the employee retention credit was equal to 50% of all qualified incomes you paid workers between March 12, 2020, and December 31, 2020, with a limitation of $10,000 in incomes for that whole time duration. The maximum 2020 credit per worker was $5,000. Okay, however that's absolutely nothing compared to the 2021 credit due to the fact that for 2021, the credit amounts to 70% of qualified salaries per staff member paid from January 1, 2021 through December 31, 2021, restricted to $10,000 in earnings per worker ... for that whole 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 staff member per quarter. If you're qualified all four quarters, $7,000 times 4 is $28,000. That's right, folks, the maximum 2021 employee retention credit is $28,000 per worker. That's substantial. That's a blessing to numerous entrepreneur today. You see what I suggest now, right, how the employee retention credit has gone from awful duckling in 2020 to beautiful swan in 2021? And by the way, by the way, qualified earnings includes employer-paid health insurance coverage 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 finest covered period that will get you full PPP forgiveness but also maximize your employee retention credit.



Alright, sorry for getting a little sidetracked there, I just enjoy talking about this stuff, but let's talk about another factor 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. I didn't certify for the 2020 employee retention credit initially, because I got very first round of PPP money and 2nd due to the fact that my organization 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. Not just are more services qualified 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 earnings and making more businesses eligible through the 20% decline limit rather than the 50% decrease limit, however the 2021 credit is likewise more rewarding than the 2020 credit.

Not bad, however that's nothing compared to the 2021 credit because for 2021, the credit is equal to 70% of certified wages per worker paid from January 1, 2021 through December 31, 2021, limited to $10,000 in incomes per worker ... for that entire time period?


           

Exactly How to Begin

The most effective means is to work with a no-risk, contingency-based cost savings company. That will certainly work out in support of their customers to get the finest costs feasible for their existing clients. They will investigate old billings for mistakes getting their customers reimbursements and also credits. They can raise the profitability and overall assessment of their customers companies.

                                                                                                                                                                                                                    

Solutions provided can include:  
 

Dedicated experts that will certainly interpret very complicated program policies and will certainly be available to address your inquiries, including:

Exactly how does the PPP funding variable into the ERC?

What are the differences in between the 2020 as well as 2021 programs and also exactly how does it relate to your business?

What are aggregation regulations for larger, multi-state employers, and also just how do I interpret multiple states executive orders?

Just how do part-time, Union, as well as tipped employees impact the amount of my reimbursements?




Comprehensive evaluation regarding your eligibility

Detailed evaluation of your claim

Support on the declaring process as well as documents

Particular program know-how that a normal CPA or pay-roll cpu may not be well-versed in

Quick and smooth end-to-end process, from eligibility to asserting and obtaining reimbursements


 


 
Directory For Employee Retention Tax Credit And Ppp Companies Available in Mount Vernon 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/

All Set To Start? Its Simple.
1. Whichever company you pick  to work with will figure out whether your organization qualifies and gets approvel for the ERC.

2. They will examine your claim as well as compute the optimum amount you can get.

3. Their team guides you with the declaring process, from beginning to end, including proper paperwork.

Frequently Asked Questions (FAQs)

What period does the program cover?

The program began on March 13th, 2020 and also ends on September 30, 2021, for eligible organizations.

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

Many businesses have received reimbursements, as well as others, in enhancement to refunds, additionally certified to proceed receiving ERC in every payroll they process to December 31, 2021, at around 30% of their payroll cost.

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

Yes. Under the Consolidated Appropriations Act, businesses can now get approved for the ERC also if they already obtained a PPP loan. Keep in mind, though, that the ERC will only relate to incomes not made use of for the PPP.

Do we still accredit if we did not incur a 20% decline in gross receipts .

A government authority needed full or partial closure of your business throughout 2020 or 2021. This includes your operations being limited by business, inability to take a trip or limitations of group meetings.

  • Gross receipt decrease standards is various for 2020 as well as 2021, yet is gauged against the current quarter as contrasted to 2019 pre-COVID quantities:

    • A federal government authority called for complete or partial closure of your business throughout 2020 or 2021. This includes your operations being restricted by business, inability to travel or limitations of group meetings.
    • Gross invoice decrease requirements is various for 2020 and also 2021, however is gauged versus the current quarter as contrasted to 2019 pre-COVID quantities.
Do we still certify if we stayed open during the pandemic?

Yes. To qualify, your service must satisfy either among the adhering to standards:

  • Experienced a decrease in gross invoices by 20%, or
  • Had to change business procedures due to government orders

Many products are taken into consideration as changes in service operations, consisting of changes in work roles as well as the purchase of added safety devices.