He’s helped companies to better compete, maximize resources and protect their business.
Kirk’s impressive 30-year sales career has been in the Human Capital Management space, with additional focus on tax credits and incentives. Kirk joins Synergi Partners as Director of Sales where he’ll use his passion for developing people, creating processes & solutions to foster continued growth of our sales organization. See below for just a few common misconceptions that our team regularly encounters: We’ll partner with your internal stakeholders to make sure you leave no stone unturned.īy taking the time to evaluate your organization’s existing data and resources, you’ll successfully identify gaps, avoid costly mistakes, maximize credits and ensure your ERC documentation is in order in the event of an audit. To avoid costly mistakes is to work with teams like ours who are experts in maximizing federal and state tax programs. This is because these individuals are generalist and at times lack the knowledge and understanding around the written intent of the legislation, misinterpreting qualification requirements. Despite having in-house accountants and CPAs, many businesses are making assumptions or overlooking important information that is costing them access to invaluable resources. Review your internal team’s knowledge and understanding of the regulations.Consider partnering with Synergi Partners – we specialize in helping companies participate in tax credit programs so you can maximize both benefits. Spend time documenting what wages were paid with PPP loan funds and utilize those funds towards allowable expenses – other than wages. You cannot include wages paid for with PPP loan funds as qualified wages in the ERC calculation. If your company has taken round 1 and/or 2 PPP loan, you can claim the ERC- but you need to evaluate two (2) important areas: ALREADY TOOK A PPP LOAN AND WANT TO CLAIM THE ERC? Thus, a company does not have to experience a decline in revenue to be eligible for the ERC. It is important to note, the intent of Congress is clear in the plain language of legislation which provides that an employer must satisfy the Gross Receipts Test or the Government Orders Test, not both. The threshold was lowered for 2021 eligibility and now, an employer is eligible for the ERC under the Gross Receipts Test for a quarter in 2021 if it can show it experienced a 20% or greater decline in gross receipts compared to the same or alternate quarter (as defined in the legislation). When analyzing whether an employer is eligible for the CARES Act ERC in 2020 under the Gross Receipts Test, an employer is eligible if it experienced a 50% or greater decline in gross receipts compared to the same quarter in 2019. A “significant decline” is defined differently in 20. Gross Receipts Test - an employer must have experienced a significant decline in gross receipts.Common disruptions include: the inability to travel, reduced access to equipment, supply chain delays and mandated sanitation practices-all of which can greatly inhibit a company’s ability to conduct its business OR
PPP GROSS RECEIPTS TEST FULL
Government Orders Test - an employer must have experienced a full or partial suspension of business operations due to directives enacted by an appropriate governmental authority in response to COVID-19.To be considered an eligible employer for the CARES Act ERC you must satisfy ONE of the following tests: It is important to note, if you are eligible for a PPP loan you are likely also eligible for the ERC.
PPP GROSS RECEIPTS TEST HOW TO
And because the rules around the ERC have changed, and the circumstances relating to COVID-19 continue to evolve, many companies are unsure of the path forward and how to maximize both the benefit of both the ERC and PPP loan. What it comes down to is that each program has its own set of regulations, qualification criteria and deadlines. The above showcases that while there are significant and long-term advantages to be gained by partaking in both, participation is nuanced and greatly depends on each company’s individual circumstances. No restrictions (other than some governmental employers) Private equity companies and public companies not eligible ($5,000 per employee in 2020 and $7,000 per employee per $33,000 per employee max potential benefit. Not to exceed $2M or $2.5 months in average payroll Must use at least 60% of loan proceeds on payroll
Can qualify for the ERC without any economic impact under the Government Orders Test Must have experienced a decline of 25% in a quarter, compared to the same quarter in 2019
Receipt of PPP loan is public informationĬonfidential.
0 kommentar(er)
