Main Street Lending Program Vs PPP – Claim Employee Retention Credit | PPP Loan Application

Employee Retention Credit claim up to $26,000 per employee. Main Street Lending Program Vs PPP. Even if you have already claimed for PPP Loan Application. How to claim Employee Retention Credit or ERC for your business.

 Concerning The ERC Program
What is the Employee Retention Credit (ERC)? Main Street Lending Program Vs PPP

ERC is a stimulus program developed to assist those companies that had the ability to keep their staff members during the Covid-19 pandemic.

 

https://www.youtube.com/watch?v=OndBOmcua9A

 

Developed by the CARES Act, it is a refundable tax credit– a grant, not a loan– that you can claim for your business. Main street lending program vs PPP. The ERC is available to both small and also mid sized businesses. It is based upon qualified earnings and medical care paid to workers

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Up to $26,000 per  worker
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 Offered for 2020  and also the  initial 3 quarters of 2021
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Qualify with  reduced  profits or COVID event
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No  restriction on  financing
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ERC is a refundable tax credit.

Just how much money can you come back? Main Street Lending Program Vs PPP

You can claim as much as $5,000 per staff member for 2020. For 2021, the credit can be approximately $7,000 per staff member per quarter.

 Exactly how do you know if your business is eligible?
To Qualify, your business  needs to have been negatively  affected in either of the  adhering to  means:
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A government authority  called for partial or full  closure of your business  throughout 2020 or 2021. Main street lending program vs PPP.  This includes your procedures being restricted by business, failure to take a trip or restrictions of group meetings
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Gross receipt  decrease  requirements is  various for 2020  as well as 2021,  however is  determined  versus the  present quarter as  contrasted to 2019 pre-COVID amounts
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A business can be  qualified for one quarter  and also not another
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 Under the CARES Act of 2020,  services were not able to Qualify for the ERC if they  had actually  currently received a Paycheck Protection Program (PPP) loan.  Main street lending program vs PPP.  With brand-new regulations in 2021, companies are currently qualified for both programs. The ERC, however, can not put on the exact same wages as the ones for PPP.

Why  United States?
The ERC  went through several  adjustments  as well as has  several  technological  information,  consisting of  exactly how to  figure out  certified  incomes, which employees are  qualified,  and also more. Main street lending program vs PPP.  Your business’ details case might require more extensive evaluation and also analysis. The program is complex and could leave you with many unanswered inquiries.

 

 

We can help make sense of  everything. Main street lending program vs PPP.  Our specialized specialists will lead you and also describe the actions you require to take so you can make best use of the claim for your business.

GET QUALIFIED.

Our  solutions include:
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Thorough  analysis  concerning your eligibility
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 Thorough  evaluation of your claim
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Guidance on the  asserting  procedure  as well as  documents
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 Certain program  competence that a  routine CPA or payroll processor  could not be  fluent in
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 Quick  and also smooth end-to-end  procedure, from eligibility to  asserting and  obtaining  reimbursements.

 Devoted  experts that  will certainly interpret highly complex program  regulations and will be available to  address your questions,  consisting of:

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 Just how does the PPP loan factor into the ERC?
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What are the differences between the 2020 and 2021 programs  and also how does it  put on your business?
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What are  gathering  guidelines for  bigger, multi-state  companies, and  just how do I  translate  numerous states’  exec orders?
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Just how do part time, Union, and tipped staff members affect the amount of my reimbursements?

 All Set To Get Started? It’s Simple.

1. We  identify whether your business  gets the ERC.
2. We  examine your  case  and also compute the maximum  quantity you can  get.
3. Our team guides you through the  asserting process, from  starting to  finish, including  correct  documents.

DO YOU QUALIFY?
 Address a few simple questions.

SCHEDULE A CALL.
Frequently Asked Questions (FAQs).

What period does the program cover?
The program started on March 13th, 2020 as well as ends on September 30, 2021, for qualified employers. Main street lending program vs PPP.
You can  request  reimbursements 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.

We have clients who got reimbursements only, as well as others that, along with refunds, also qualified to proceed obtaining ERC in every pay roll they refine with December 31, 2021, at about 30% of their payroll expense.

We have clients that have gotten refunds from $100,000 to $6 million. Main street lending program vs PPP.
Do we still Qualify if we already took the PPP?
Do we still Qualify if we did not incur a 20% decline in gross  invoices?
Do we still Qualify if we  stayed open during the pandemic?

The federal government  developed the Employee Retention Credit (ERC) to  supply a refundable employment tax credit to  assist  services with the  price of  maintaining staff  used.

Eligible businesses that experienced a decrease in gross invoices or were shut because of government order and really did not claim the credit when they submitted their original return can capitalize by submitting adjusted employment income tax return. For instance, businesses that submit quarterly employment tax returns can file Form 941 X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for RefundPDF, to claim the credit for prior 2020 as well as 2021 quarters. Main street lending program vs PPP.

With the exception of a recoverystartup business, many taxpayers ended up being ineligible to claim the ERC for incomes paid after September 30, 2021. Main street lending program vs PPP.  A recoverystartup business can still claim the ERC for earnings paid after June 30, 2021, as well as before January 1, 2022. Eligible companies might still claim the ERC for prior quarters by submitting an appropriate modified work income tax return within the due date stated in the equivalent type instructions. Main street lending program vs PPP.  If an employer submits a Form 941, the company still has time to file an modified return within the time set forth under the “Is There a Deadline for Filing Form 941-X?” section in Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.

 

What Is The Employee Retention Credit (ERC), And How Does The Program Work?

When the Covid 19 pandemic started, and services were compelled to shut down their operations, Congress passed programs to offer financial help to companies. One of these programs was the staff member retention credit ( ERC).

The ERC provides eligible companies payroll tax debts for wages as well as medical insurance paid to staff members. However, when the Infrastructure Investment and also Jobs Act was authorized into legislation in November 2021, it placed an end to the ERC program.

Despite the end of the program, businesses still have the  possibility to  insurance claim ERC for  as much as  3 years retroactively. Main street lending program vs PPP.  Below is an summary of how the program jobs and also just how to claim this credit for your business.

 

What Is The ERC?

Originally available from March 13, 2020,  with December 31, 2020, the ERC is a refundable  pay-roll tax credit created as part of the CARAR 0.0% ES Act. Main street lending program vs PPP.  The purpose of the ERC was to motivate companies to keep their staff members on pay-roll during the pandemic.

 Certifying employers  as well as  consumers that  got a Paycheck Protection Program loan  can claim  as much as 50% of qualified wages, including eligible  medical insurance  expenditures. The Consolidated Appropriations Act (CAA) expanded the ERC.  Companies that qualified in 2021 can claim a credit of 70% in qualified  earnings.

 

 That Is Eligible For The ERC?

Whether or not you qualify for the ERC relies on the moment period you’re getting. To be qualified for 2020, you need to have actually run a business or tax exempt organization that was partly or totally shut down because of Covid-19. Main street lending program vs PPP.  You also require to show that you experienced a significant decrease in sales– less than 50% of equivalent gross invoices contrasted to 2019.

If you’re  attempting to  get 2021, you  have to show that you experienced a  decrease in gross  invoices by 80%  contrasted to the  exact same time period in 2019. If you weren’t in business in 2019, you can  contrast your gross  invoices to 2020.

The CARES Act does ban independent individuals from declaring the ERC for their own incomes. Main street lending program vs PPP.  You also can’t claim earnings for certain individuals that belong to you, however you can claim the credit for earnings paid to workers.

 

What Are Qualified Wages?

What counts as qualified  earnings depends on the  dimension of your business and how many  workers you  carry  team. There’s no  dimension  limitation to be  qualified for the ERC, but  little and  big  business are treated differently.

For 2020, if you had greater than 100 permanent employees in 2019, you can just claim the incomes of employees you maintained yet were not functioning. If you have fewer than 100 staff members, you can claim everybody, whether they were functioning or otherwise.

For 2021, the threshold was increased to having 500 full-time employees in 2019, providing companies a lot more leeway as to who they can claim for the credit. Main street lending program vs PPP.  Any kind of wages that are based on FICA taxes Qualify, and you can include qualified wellness expenses when calculating the tax credit.

This revenue needs to have been paid between March 13, 2020, and also September 30, 2021. Nevertheless, recovery start-up organizations have to claim the credit via the end of 2021.

 

 Just how To Claim The Tax Credit.

 Despite the fact that the program  finished in 2021,  companies still have time to claim the ERC. Main street lending program vs PPP.  When you submit your federal tax returns, you’ll claim this tax credit by submitting Form 941.

Some companies, especially those that got a Paycheck Protection Program loan in 2020, incorrectly thought they really did not get the ERC. Main street lending program vs PPP.  If you’ve already submitted your income tax return and currently understand you are qualified for the ERC, you can retroactively use by filling out the Adjusted Employer’s Quarterly Federal Tax Return (941-X).

 Because the tax  regulations around the ERC have  transformed, it can make  identifying  qualification confusing for  several business owners. It’s  additionally  hard to  find out which  salaries Qualify and which  do not. The process gets even harder if you  have  several businesses. Main street lending program vs PPP.  And also if you submit the IRS kinds inaccurately, this can delay the entire procedure.

Main street lending program vs PPP.  GovernmentAid, a department of Bottom Line Concepts, helps clients with different types of economic relief, specifically, the Employee Retention Credit Program.

 

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    Main Street Lending Program Vs PPP