We are currently handling these for about 115 entities. In doing this and the necessary research, our knowledge has become rather extensive. Given the fact that the ERC is almost the last “free” money out there, I’d like to provide a few updates.
ERC Amounts Expanded
The latest legislation from March expanded the ERC to
1 – All four quarters of 2021.
2 – Allows for retroactive filing to amend additional quarters in 2020
3 – Allows entities that received the PPP to also claim the ERC. The caveat is that you cannot use the same payroll for forgiveness on the PPP where the ERC is claimed. But the point is that you can do both.
Certain Government Entities Eligible in 2021
Effective January 1, 2021, additional entities are eligible including State and local run colleges, universities, and organizations providing medical or hospital care in certain businesses chartered by Congress.
Three Separate Categories For Wages
1 – You cannot double dip. As mentioned before, you cannot use the same wages to claim forgiveness on a PPP that are used to claim the ERC.
2 – You cannot claim the ERC on the same wages where the Sick or Family Leave Credit is claimed under the FFCRA. Given the fact that this credit is normally so much smaller than what one would receive under the ERC, there isn’t much of a contest here. Do you want a credit for a week or two of paid sick leave, or one based on 70% of your payroll? Claim the ERC.
3 – Companies that were related to a PPP Borrower that did not claim the ERC because of affiliation rules can now claim the credit retroactively through an amendment.
Let me leave you with this.
The rules are extremely complicated, and they are actively trying to come up with reasons to not pass out this money, but we’re getting it done. We’ve been filing these since the beginning of the pandemic, and have come up with a tried and true way of getting these government payments.
If you haven’t signed up for our program yet, please do so today.
The state and city have completely reopened except for a couple of minor restrictions. The question becomes, what is the new normal?
Will companies continue to allow workers to work virtually? The problem with this is that no one gets as much work done at home that they do in an office. There are just too many distractions.
What will we do with all of the unused office space? The immediate answer before was to turn it into condos. But with no one working downtown, who’s going to want the condos?
Will the city and suburbs ever do anything about the crime and violence now so endemic in these areas. We have six clients that have moved to other states because of these problems. Thank God I’m licensed at the Federal Level. Now our elected officials are releasing felons without even posting a cash bond.
I’ll mention one thing to all of you which is the concept of the pendulum. I’ve lived in this town for the last 55 years and these problems swing left and right or up and down. Chicago has always been a place of extremes.
It goes one way for a while. Then something tragic happens, and it goes the other way. It’s a lot like the weather. If you don’t like it, wait five minutes, and it’ll change.
If you have any difficulties, don’t hesitate to contact us.
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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