In 2020, the CARES Act created a new concept of tax credit called The Employee Retention Credit. This credit did not get a lot of publicity at the time because it was dwarfed by the Paycheck Protection Program and a pandemic. In December 2020, the Employee Retention Credit (ERC) was extended to June 30, 2021. On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (ARPA). ARPA extends the…
Read MoreIRS Issues Ruling on Paycheck Protection Program Forgiveness This week, the Internal Revenue Service issued guidance on PPP loan forgiveness via Revenue Ruling 2020-27, which can be found here: https://www.irs.gov/pub/irs-drop/rr-20-27.pdf. Don’t worry, I will summarize it for you with examples. First a little background. BACKGROUND In April 2020, Congress passed the CARES Act that allowed for a Paycheck Protection Program (PPP) loan from the Small Business Administration (SBA). If used properly, those loans may be…
Read MoreCongratulations! You are one of the lucky recipients of the Paycheck Protection Program Loan. Not everyone can say the same. Once you receive approval, the bank has ten calendar days to disburse the money. As soon as you receive those funds, the 8-week clock begins to tick. Do not waste time. For the eight weeks immediately following your loan funding, your expenses must meet certain criteria if you hope to have the loan forgiven. Loan…
Read MoreNow that countries around the world have stimulus packages in place, what is the best use of that money and opportunity? In the United States, our government passed two packages in the past month. Your head may be spinning with the best course of action for your business. I have some suggestions. But first, allow me to offer a quick glossary of terms: FFCRA – Families First Coronavirus Response Act – passed March 18, provides…
Read MoreAs the global pandemic brings business and the economy to a grinding halt, you may wonder what steps you can take now to protect your business, your employees, and your customers. CISA.gov lists the Information Technology Sector as one of 16 critical infrastructure sectors needed to stay open and operable during a national crisis. Here are some steps you can take right now to alleviate stress on your business. Payroll The IRS outlined provisions for…
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