We have previously blogged about this in the beginning of the year to make sure that we are keeping everyone up to date on possibly getting a credit from the IRS for this year and back dating to 2020. You are only eligible to receive the credit if any of these apply to you:
- the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel or group meetings due to COVID-19, or
- a significant decline in gross receipts.
A significant decline in gross receipts begins:
- on the first day of the first calendar quarter of 2020
- for which an employer’s gross receipts are less than 50% of its gross receipts
- for the same calendar quarter in 2019.
The significant decline in gross receipts ends:
- on the first day of the first calendar quarter following the calendar quarter
- in which gross receipts are more than of 80% of its gross receipts
- for the same calendar quarter in 2019.
This eligible credit can also be applied for 2021. The same eligibility for 2021 applies except instead of 50% decline in gross receipts it is 20% for 2021. You may also receive the credit from the IRS for both 2020 and 2021 if you received the PPP Loan, but cannot get the credit during the PPP Loan Period. Your credit for 2020 is eligible 50% of $10,000.00 of employee wages per employee and for 2021 it is 70% of $10,000.00 of employee wages per employee. The credits can be thousands of dollars that can help your business during this difficult time. We would love to help with this as well. We can do any of your calculations for all of your employees as well as doing the 941X for the amended periods for you to receive the Employee Retention Credit Checks. In order for us to help with these ERC amendments we would need the following:
- Loan Begin Date and End Date
- Any owners with more than 51% ownership that get paid through payroll.
- Any family members of ownership that get paid through payroll.
Once we receive this information we can work on the wages and inputting them into payroll. We will then fill out the 941X’s with the corrected information and then send the 941X, A detailed spreadsheet with the employees credits and an Employee Retention Agreement. The 941X we fill out will need to be signed and sent back to us to send to the IRS. Once these 941X’s have been filed to the IRS you would be receiving the checks in the mail from the IRS once they have processed all of the information. Our goal is to make sure everyone has a chance to take advantage of helping their business grow.
