The early end of the Employee Retention Credit (ERC) has created issues for many employers, who expected it to continue into the 4th Quarter. Those issues are creating unreasonable penalties and interest.
Many employers in anticipation of the ERC, reduced or eliminated their payroll tax deposits in the 4th Quarter of 2021. Since the Infrastructure Bill was signed into law in the middle of the quarter, that leaves those employers in a bind.
If this is your situation and you are able to make those tax deposits, you should do so at your earliest possible convenience. The deposits are going to be late, creating penalties and interest that will be levied when the 941’s are filed in January of 2021.
Obviously, this is patently unreasonable. Why should anyone be penalized because they followed the rules that existed at the beginning of the quarter?
The IRS is yet to address the situation. I would expect they will in the coming months, but currently there is no relief available.
If you qualify and haven’t yet taken advantage of the ERC, we can still amend your existing 941’s and get you a payment on up to 70% of your payroll. Just because the current administration has prematurely ended the program, doesn’t mean that the amendments and payments have ended as well.
If you haven’t yet signed up for our Employee Retention Credit Consulting and Preparation Program, what’s holding you back. This isn’t going to last forever. Sign up today.
Let me leave you with this.
Tomorrow, I’ll get up early and do whatever last minute shopping needs to be accomplished. My wife and daughter will go to Indiana to celebrate with her people, while my Mom and her boyfriend will come to my home for Thanksgiving.
I’ll start the turkey, do the sides, and set the table. While the turkey is cooking we’ll get into the hottub and drink a couple of bottles of champagne.
Yeah. That’s right. The second you think things get weird at your home, drop by my place to see the word redefined.
But that isn’t what it’s all about.
Thanksgiving is a day where we focus on our past, our present, and our future. We give thanks for the many things we have and the opportunities so abundant in our great Land of Liberty.
So take a moment, join hands at your table, and reflect on all that is good in your world. There’s so much to be thankful for in this beautiful place. The least we can do is turn off the football games for a moment and recognize how blessed we are in the Land of the Free and The Home of the Brave.
A Happy And Blessed Thanksgiving To All.
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, and Accounting and Tax Work, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.