We are continuing to get questions about this program, probably because the PPP money has been exhausted and the EIDL money is so hard to get. So let’s go back over the basics.
Do I Qualify?
If your business was hindered by the pandemic, such as not being able to have meetings with your clients because no one wanted to meet face to face, then you certainly qualify.
Did I need to be in business at the start of the pandemic?
No. the legislation passed recently allows newly formed businesses to take advantage of the credit as well.
How does the credit work?
It acts like an overpayment on your payroll tax returns. We can use that overpayment to pay older federal payroll tax bills, current ones, or we can request a refund.
How long does it take to receive a refund?
If you are a regular payroll client of ours, then we can electronically file the return. In this instance, most of the refunds were issued in four to five weeks. If you or a service has already filed the payroll tax returns, then we will need to amend. Since amended returns cannot be electronically filed, these refunds are taking three to four months.
Do these credits need to be forgiven like a PPP Loan?
No, these are not loans that need to be repaid. As such, there is no reason for forgiveness.
Must I spend this money in a particular way?
Unlike the PPP or EIDL money, there are no restrictions on the ERC. There is no agreement that must be signed forcing you to spend the money on a particular type of expense. You can do anything with it that you would like.
If you have not signed up for our Employee Retention Credit Consulting and Preparation program what’s holding you back? Please sign up today by clicking the button below.
Let me leave you with this.
The deficit hawks in the new administration’s own party are beginning to get rather loud. Leading members of both parties are beginning to say that enough is enough, which leads me to a possible conclusion.
They may turn the ERC money off early.
It’s obvious that the economy has done poorly and that the federal deficit has spiralled out of control over the past year. Sooner or later someone is probably going to turn off the spigot and get to the promised business of raising our taxes.
Where will you be when all of this stops?
Will you be cash rich after getting a government check for up to 70% of your employee’s payroll or will you be trying to figure out how to pay for your taxes? Let’s hope that you are the former rather than the later.
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 but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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