Since March of 2020, the COVID-19 pandemic has affected all of us in ways we never thought possible. The US Government has put in place several programs to help struggling businesses begin to thrive again. Now that we are starting to see the light at the end of the tunnel, it is time to start putting in place and taking advantage of these tax credit and loan programs which are designed to keep cash in the business while keeping your employees paid.
Employee Retention Credit (ERC)
The Employee Retention Credit is a payroll tax credit that you can qualify for if your business was fully or partially closed due to a government order or has experienced a significant drop in gross receipts in 2020 or 2021 when compared to 2019. This is a refundable credit that pays back 50% of qualified payroll costs in 2020 and 70% per quarter in 2021. Of course there are caps on how much you can have refunded, and the qualifiers for this credit are sometimes difficult to understand, but that is what we do. We can help you decide which of these programs is right for you. Please answer the questions on the cards below in order to check your possible eligibility for this credit.
Paycheck Protection Program (“PPP” Loans)
The Paycheck Protection Program is a Small Business Administration loan that can help you cover your payroll costs for 8 weeks. There was a round of PPP loans in 2020, and a new round this year. To qualify for 2021, your business had to experience a drop in gross receipts of 25% in the 4th quarter of 2020. This loan is forgivable, turning it into a grant if certain conditions are met. If you believe you qualify, we can help you navigate how these loans fit in with these and the other tax credit programs we help companies administer.
Families First Coronavirus Response Act (the “FFCRA”)
This program provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19. Workers may receive up to 80 hours of paid sick leave for their own health needs or to care for others and up to an additional ten weeks of paid family leave to care for a child whose school or place of care is closed or child care provider is closed or unavailable due to COVID-19 precautions. The FFCRA covers the costs of this paid leave by providing small businesses with refundable tax credits. Certain self-employed individuals in similar circumstances are entitled to similar credits.
All of these programs fit in with the other federal and state programs we help companies administer, but it can be difficult figuring out how they can all work together. We built our business on the expertise of knowing how tax credits work for businesses. This is all we do, and there is never a charge until we find you credits. Please call us at 888-236-7339 xt. 705 for a completely free, no obligation consultation, or fill in the consultation form, and we’ll contact you.