PPP Safe Harbor – Claim Employee Retention Credit | PPP Loan Application

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

 Regarding The ERC Program
What is the Employee Retention Credit (ERC)? PPP Safe Harbor

ERC is a stimulus program designed to help those companies that were able to retain their employees throughout the Covid-19 pandemic.

 

 

Established by the CARES Act, it is a refundable tax credit– a grant, not a loan– that you can claim for your business. PPP safe harbor. The ERC is offered to both tiny as well as mid sized companies. It is based on qualified incomes and also health care paid to workers

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Up to $26,000 per employee
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 Readily available for 2020  and also the  initial 3 quarters of 2021
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Qualify with decreased  profits or COVID  occasion
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No  limitation on funding
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ERC is a refundable tax credit.

How much money can you get back? PPP Safe Harbor

You can claim as much as $5,000 per employee for 2020. For 2021, the credit can be up to $7,000 per employee per quarter.

How do you know if your business is  qualified?
To Qualify, your business  has to have been  adversely  affected in either of the following ways:
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A government authority  needed partial or full shutdown of your business during 2020 or 2021. PPP safe harbor.  This includes your operations being limited by commerce, lack of ability to take a trip or constraints of team meetings
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Gross receipt reduction  standards is different for 2020  as well as 2021,  yet is  determined against the  present quarter as  contrasted to 2019 pre-COVID amounts
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A business can be eligible for one quarter and not  an additional
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 Originally, under the CARES Act of 2020,  organizations were  unable to qualify for the ERC if they  had actually already  gotten a Paycheck Protection Program (PPP) loan.  PPP safe harbor.  With new regulation in 2021, companies are currently eligible for both programs. The ERC, though, can not apply to the exact same salaries as the ones for PPP.

Why Us?
The ERC  undertook  a number of  modifications and has  several  technological  information,  consisting of  exactly how to  identify  certified  earnings, which  staff members are eligible, and  a lot more. PPP safe harbor.  Your business’ certain case might require even more extensive review and evaluation. The program is complex and also might leave you with lots of unanswered concerns.

 

 

We can  assist make sense of it all. PPP safe harbor.  Our specialized experts will certainly lead you and also outline the steps you require to take so you can make best use of the case for your business.

 OBTAIN QUALIFIED.

Our  solutions include:
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Thorough evaluation regarding your eligibility
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 Extensive analysis of your claim
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 Assistance on the claiming  procedure  and also documentation
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 Particular program  knowledge that a  routine CPA or payroll processor  may not be  fluent in
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 Quick  as well as smooth end-to-end  procedure, from eligibility to  declaring and  getting refunds.

 Devoted  experts that  will certainly  analyze highly  complicated program  regulations  as well as  will certainly be  offered to answer your questions,  consisting of:

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 Exactly how does the PPP loan  element into the ERC?
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What are the  distinctions  in between the 2020  as well as 2021 programs  and also  exactly how does it  relate to your business?
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What are  gathering rules for larger, multi-state employers,  as well as how do I interpret multiple states’ executive orders?
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Exactly how do part time, Union, and tipped employees influence the quantity of my reimbursements?

 Prepared To Get Started? It’s Simple.

1. We determine whether your business  gets approved for the ERC.
2. We  assess your  insurance claim and compute the  optimum  quantity you can receive.
3. Our  group  overviews you  with the  asserting  procedure, from  starting to end,  consisting of  appropriate  documents.

DO YOU QUALIFY?
 Respond to a few  straightforward  concerns.

SCHEDULE A CALL.
Frequently Asked Questions (FAQs).

What period does the program cover?
The program began on March 13th, 2020 as well as upright September 30, 2021, for qualified companies. PPP safe harbor.
You can  make an application for refunds for 2020  as well as 2021 after December 31st of this year, into 2022 and 2023.  And also potentially beyond  after that  also.

We have clients who received refunds only, and also others that, along with refunds, likewise qualified to proceed obtaining ERC in every pay roll they refine through December 31, 2021, at regarding 30% of their payroll expense.

We have clients that have actually received refunds from $100,000 to $6 million. PPP safe harbor.
Do we still Qualify if we  currently took the PPP?
Do we still Qualify if we did not  sustain a 20% decline in gross receipts?
Do we still Qualify if we  continued to be open during the pandemic?

The federal government established the Employee Retention Credit (ERC) to  supply a refundable  work tax credit to  assist businesses with the cost of  maintaining staff  utilized.

Eligible services that experienced a decline in gross invoices or were closed as a result of government order as well as really did not claim the credit when they filed their initial return can take advantage by submitting adjusted work tax returns. Services that submit quarterly employment tax returns can submit Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for RefundPDF, to claim the credit for previous 2020 and also 2021 quarters. PPP safe harbor.

With the exception of a recoverystartup business, most taxpayers came to be ineligible to claim the ERC for wages paid after September 30, 2021. A recovery start-up business can still claim the ERC for wages paid after June 30, 2021, and before January 1, 2022.

 

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

When the Covid 19 pandemic started, as well as services were compelled to close down their procedures, Congress passed programs to supply financial help to firms. Among these programs was the employee retention credit ( ERC).

The ERC gives eligible employers pay roll tax credit histories for incomes and medical insurance paid to workers. Nevertheless, when the Infrastructure Investment and also Jobs Act was authorized right into legislation in November 2021, it put an end to the ERC program.

Despite  completion of the program,  companies still have the  chance to  insurance claim ERC for  approximately three years retroactively. PPP safe harbor.  Here is an overview of just how the program works as well as just how to claim this credit for your business.

 

What Is The ERC?

Originally  offered from March 13, 2020, through December 31, 2020, the ERC is a refundable  pay-roll tax credit created as part of the CARAR 0.0% ES Act. PPP safe harbor.  The purpose of the ERC was to encourage companies to keep their employees on payroll during the pandemic.

 Certifying  companies and  customers that  secured a Paycheck Protection Program loan  might claim up to 50% of qualified wages, including  qualified health insurance  costs. The Consolidated Appropriations Act (CAA) expanded the ERC. Employers that qualified in 2021 can claim a credit of 70% in qualified  salaries.

 

Who Is Eligible For The ERC?

Whether or not you get the ERC relies on the moment period you’re obtaining. To be eligible for 2020, you need to have actually run a business or tax exempt company that was partly or totally closed down because of Covid-19. PPP safe harbor.  You additionally need to show that you experienced a substantial decline in sales– less than 50% of comparable gross invoices contrasted to 2019.

If you’re trying to  get approved for 2021, you  need to  reveal that you experienced a  decrease in gross receipts by 80%  contrasted to the  exact same time period in 2019. If you weren’t in business in 2019, you can  contrast your gross receipts to 2020.

The CARES Act does forbid freelance individuals from claiming the ERC for their very own wages. PPP safe harbor.  You likewise can not claim salaries for certain individuals that are related to you, but you can claim the credit for wages paid to staff members.

 

What Are Qualified Wages?

What counts as qualified wages depends on the  dimension of your business  and also  the amount of  workers you have on  team. There’s no size  limitation to be eligible for the ERC,  however  tiny  as well as  huge  business are  discriminated.

For 2020, if you had more than 100 full-time staff members in 2019, you can only claim the wages of staff members you retained however were not working. If you have less than 100 staff members, you can claim everyone, whether they were functioning or not.

For 2021, the limit was increased to having 500 full time staff members in 2019, providing companies a lot more flexibility as to who they can claim for the credit. PPP safe harbor.  Any kind of incomes that are based on FICA taxes Qualify, as well as you can include qualified health and wellness expenses when computing the tax credit.

This income has to have been paid between March 13, 2020, and September 30, 2021. However, recoverystartup services have to claim the credit through completion of 2021.

 

 Just how To Claim The Tax Credit.

 Although the program  finished in 2021,  services still have time to claim the ERC. PPP safe harbor.  When you file your federal tax returns, you’ll claim this tax credit by filling out Form 941.

Some businesses, especially those that obtained a Paycheck Protection Program loan in 2020, wrongly believed they didn’t qualify for the ERC. PPP safe harbor.  If you’ve already filed your tax returns and now understand you are eligible for the ERC, you can retroactively apply by filling out the Adjusted Employer’s Quarterly Federal Tax Return (941-X).

Since the tax regulations around the ERC have transformed, it can make determining qualification confusing for numerous business owners. The process obtains also harder if you possess several businesses.

PPP safe harbor.  GovernmentAid, a division of Bottom Line Concepts, helps customers with various types of monetary relief, especially, the Employee Retention Credit Program.

 

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