The Infrastructure Bill, long touted as a way to get America back to work, has ended the Employee Retention Credit at the 3rd Quarter. Originally, the credit was extended to the end of 2021.
Wages paid after September 30, 2021, are no longer eligible.
Why they did this, even after legions of current and former members of the new administration’s own party called for it to continue, is obvious. The administration is more interested in promoting its social agenda, rather than protecting the small businesses that actually fund our economy.
It is possible that this is only a temporary setback. I’ve heard that many are expecting the 4th Quarter of ERC’s to be included in the 2022 budget reconciliation bill now under consideration by Congress.
But failing a new spike in C-19 cases or another round of closures, I can’t imagine why they’d end with this bill only to extend it with the next. Time will tell.
We can still amend. Like income tax returns, we have up to three years after the original filing date to amend the form and receive a refund.
If you haven’t already signed up for our Employee Retention Credit Consulting and Preparation program, I’d suggest you do it now before they shut that down as well.
The only other tax change included in the Infrastructure Bill of substance, was a new reporting requirement for crypto assets. It requires “brokers”, who affect trades for others while receiving consideration, to report those trades annually to the IRS.
Wasn’t this always the case?
Let me leave you with this.
A new survey on why Americans are refusing to return to work, has provided some insights into our new economy.
Chief among those reasons was fear of the virus. Those who can’t work virtually, and remain unvaccinated, are choosing to stay home.
A close second was an unemployed worker’s nest egg. Many built up more savings than usual during the pandemic, and don’t feel the need to return quite yet.
Early retirements are also playing a major factor. Many chose to claim their retirement benefits earlier in the pandemic.
Care considerations are also playing a part. Given the need to care for younger or older family members, many can’t return. Even after some employers have increased their wages by more than 10%, many are still having difficulties maintaining a reasonable workforce.
My advice is to be patient.
I don’t know how many good and bad economies I’ve entrepreneured through. Frankly, I’ve lost count, but one thing is certain.
Wages go up. They don’t go down.
If you temporarily increase your wages to attract workers, what are you going to do tomorrow? Once things stabilize, how are you going to remain profitable?
The large, publicly traded companies can be unprofitable and stay open. A couple of bad years isn’t going to put them out of business. They’ll just dilute their shares or issue more bonds to cover their losses.
But we can’t do that. A couple of bad years could shut us down.
Stick to your guns. Stay the course. With the new tax legislation coming, there’s going to be bad weather ahead for all.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
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