There’s a lot of confusion in reference to this, so let me go through a few commonly asked questions.
How Does The Credit Work?
It may be called a credit, but in reality, it’s a refund based on money you didn’t pay. A credit is claimed on the Federal 941, creating an overpayment which can either be refunded or used to pay the current federal payroll tax deposits. In other words, you will receive a check.
Does this need to be repaid or forgiven?
No. This is not a loan like EIDL that needs to be repaid or the PPP which can be forgiven. It’s simply a refund.
Are there any strings attached on the money?
No. Unlike the PPP or the EIDL, there are no rules on how this money must be spent.
How long does it take to get the payments?
If you are one of our payroll clients, then it normally takes about a month. In this instance, we handle everything by electronically filing the 941 and faxing in the 7200.
If your 941 has already been filed, then the only way to claim the refundable credit is to do an amendment. These cannot be filed electronically, and are taking anywhere from three to four months. They’re getting done, they just require a little patience.
Do I qualify to claim the Employee Retention Credit?
If you were in business during the pandemic and were hindered, then the answer is yes. If that hinderance was a little as not being able to see clients, because no one wanted to meet face to face, then you qualify.
If I already received the PPP, can I also claim the ERC?
Yes. Originally you couldn’t, but with the legislation passed earlier this year, you can do both.
For help claiming the refundable Employee Retention Credit, please click the button listed below.
Let me leave you with this.
Two weeks ago, it was almost impossible to get an appointment for an immunization. Now there’s nothing but appointments available. Why?
All of a sudden no one wants a shot.
I’ve read that many who received the first shot are afraid of the side effects that many are experiencing from the second shot. Others are so opposed to being vaccinated that they don’t want anything to do with immunization in the first place.
This tells me that the pandemic isn’t over by a long shot.
If everyone had continued to get vaccinated, then we might be back at full capacity with everything open by the middle of summer. At this rate, we still might be where we are going into next fall, and guess what happens then.
Everyone gets the flu, and here we go again.
I would suggest that we all need to do some long-range planning. If things aren’t going to improve, then we better be ready. Take a look at your cash flow needs. Trim whatever labor is necessary. Take advantage of the programs available to get you through this storm.
Encourage your employees to get vaccinated. If they haven’t already, make an appointment for them, and give them some paid time off to get the shot. Imagine what it could cost if you don’t.
We aren’t out of this by a long shot. As always, this is a time to entrepreneur.
In other words, lead.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have bit to ask. I’m here and I remain,
Accounting Solutions Ltd.
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