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Ozone Park NY Employee Retention Grant Program


Can you take the employee retention credit on the wages paid out of your S corporation to you, the 100% owner? Now, this is a big dispute in the tax expert neighborhood right now. I'm not going to hang my hat on any one position up until we get more clarification from the IRS on this, however if I had to lean one way or the other, I would lean in the direction of stating that owner earnings insofar as we're speaking about somebody who owns more than 50 percent of the organization, do not qualify.

How It Works

I do not wish to get too technical here, but Section 2301(e) of the CARES Act -- which developed the employee retention credit -- states that for functions of the employee retention credit, "rules similar to the guideline of areas 51(i)( 1) and 280C(a) of the Internal Profits Code of 1986 will apply," don't get caught up on the 1986, that's simply the last time the Internal Profits Code had a major overhaul, so it's simply referred to as the Internal Revenue Code of 1986. The fundamental part here is those other code sections referral.

That is just stating that if you get a credit on some wages you pay in your organization, you can't double dip and take a reduction for those exact same incomes. Let's focus on the provision that says "if the taxpayer is a corporation" due to the fact that we're assuming an S corp taxpayer here.

That appears clear to me that owner earnings do not qualify. It's only these relatives whose wages do not count. The IRS site is not the tax code.



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About Employee Retention Grant Program

If there's a disagreement between the IRS website and the tax code, and there are plenty, believe me, the tax code wins every single time. You can't state, 'Well, it stated such and such on the IRS's site!'" And in this case, it's an argument by omission.

You're saying, "Well, the IRS website doesn't explicitly state that owner incomes are left out so therefore they need to be okay." No, take a look at the code and the regs also, though obviously the code is more reliable than the regs.

However on the other hand, the section in the CARES Act itself about this is undoubtedly unclear, all it says is, "For functions of this section, guidelines comparable to the rules of areas 51( i)( 1) and 280C( a) of the Internal Revenue Code of 1986 shall apply." "Rules comparable to ..." What does that indicate? It's up to Treasury to figure this out. So my take on this right now, unless the IRS comes out and absolutely says otherwise, I'm assuming that you can't take the employee retention credit on owner wages.

And it's the same if it's, you understand, a husband-wife-owned service, let's say both own 50%, well, sorry you're related so neither of your wages qualify either, nor relatives you employ, children, siblings, and so on. Alright, folks, that's what I have for you here, obviously I'm just scratching the surface especially with that interaction between the PPP and the employee retention credit. If you would like to to

Why Employee Retention Grant Program?

It went through several changes and has several technological information, consisting of how to establish professional incomes, which employees are qualified, as well as extra. Your service details situation could call for more intensive evaluation and analysis. The program is complex and may leave you with lots of unanswered questions.

There are lots of Companies that can help understand it all, that have actually committed experts that will certainly direct you, and lay out the steps you require to take so you can maximize the claim for your business.



How to Get Started|Start

Below you will find a list of Companies that can help you get started.

Directory For Employee Retention Grant Program Companies Available in Ozone Park NY
Equifax Workforce Solutions
Valiant Capital
NYC Business
Omega Funding solutions
Disisaster Loan Advisors
ERTC Filing
Adams Brown Strategic Allies and CPAs
Finance Pro Plus
Bottom Line Concepts

Prepared To Begin? Its Simple.
1. Whichever firm you select  to work with will figure out whether your company qualifies for the ERC.

2. They will certainly examine your case and calculate the optimum quantity you can obtain.

3. Their group guides you with the claiming procedure, from beginning to end, consisting of proper paperwork.

Frequently Asked Questions (FAQs)

What period does the program cover?

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

You can use for refunds for 2020 as well as 2021 after December 31st of this year, right into 2022 and also 2023. And also potentially beyond after that also.

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

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

Yes. Under the Consolidated Appropriations Act, businesses can currently receive the ERC even if they currently got a PPP car loan. Note, though, that the ERC will only put on incomes not made use of for the PPP.

Do we still qualify if we did not incur a 20% decline in gross invoices .

A federal government authority required partial or full closure of your organization throughout 2020 or 2021. This includes your operations being limited by commerce, lack of ability to take a trip or constraints of group meetings.

  • Gross invoice reduction criteria is different for 2020 as well as 2021, but is gauged versus the current quarter as contrasted to 2019 pre-COVID quantities:

    • A government authority required partial or complete shutdown of your service throughout 2020 or 2021. This includes your operations being restricted by business, lack of ability to take a trip or restrictions of team conferences.
    • Gross invoice reduction requirements is different for 2020 and 2021, however is measured against the current quarter as compared to 2019 pre-COVID quantities.
Do we still qualify if we stayed open during the pandemic?

Yes. To qualify, your company should satisfy either among the complying with requirements:

  • Experienced a decline in gross receipts by 20%, or
  • Needed to alter service operations due to federal government orders

Numerous products are taken into consideration as adjustments in organization operations, consisting of changes in task functions and also the acquisition of added safety devices.