The quickest option is to file your return online and receive your refund via direct deposit. Small employers receive greater benefits under the ERC regime. Specifically, for as long as they are an eligible employer, they can include wages paid to all employees. Large employers can only include salaries paid to employees for not providing services.
Technically, yes, but only salaries that meet the requirements are paid while the mandates are in effect and have a more than nominal impact on the company. Instead, the employer must reduce wage deductions on their income tax return for the tax year in which they are an eligible employer for the purposes of the ERC. The employee retention credit is a fully refundable tax credit that eligible employers request to cover certain payroll taxes. It's not a loan and doesn't have to be repaid.
For most taxpayers, the refundable credit exceeds the payroll taxes paid in a credit-generating period. While an employer cannot include salaries financed by a PPP loan in the ERC calculation, PPP funds only apply to eight to ten weeks of wage expenses. ERC eligibility periods are longer. PPP loans can also finance non-wage expenses.
No, but, if possible, allocate the maximum allowable non-wage costs to the waiver of the PPP. It is likely that the fund's sister holding companies can be treated as separate operations or businesses when considering the status of an eligible employer, since the Fund owned by the holding companies is not an active operation or business (rather a passive investment vehicle). Cherry Bekaert LLP and Cherry Bekaert Advisory LLC practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Cherry Bekaert LLP is an independent, certified public accounting firm that provides certification services to its clients, and Cherry Bekaert Advisory LLC and its subsidiaries provide tax and business advisory services to their clients.
Cherry Bekaert Advisory LLC and its subsidiary entities are not authorized public accounting firms. The entities that belong to the Cherry Bekaert brand are independently owned and are not responsible for the services provided by any other entity that provides services under the Cherry Bekaert brand. Our use of the terms “our firm” and “we” and terms of similar meaning denote the alternative practice structure of Cherry Bekaert LLP and Cherry Bekaert Advisory LLC. To date, we have worked with more than 100 banks and other employers in their efforts to obtain an ERC.
While the Internal Revenue Service (the “IRS”) has not denied any of those parties receiving the tax credit, in the vast majority of cases, customers have not yet received the funds. ERC credits are calculated based on the qualifying wages paid to employees during their status as an eligible employer. For more information on the employee retention credit, visit Cherry Bekaert's ERC Guidance Center or contact Martin Karamon. These tax credits, including the ERC, will be included in employers' quarterly payroll tax reports, Forms 941. While one of the objectives of the ERC was to provide funding to offset employee-related costs (and, therefore, to maintain jobs), the inevitable staff shortfall (such as that experienced with the SBA as a result of the Paycheck Protection Program) means that employers will, sadly, not receive the funds until long after the crisis has abated.
From now on, the only way to apply for the ERC is to file an amended Form 941X (Quarterly Federal Payroll Tax Return) for the quarters in which the company was an eligible employer. Businesses can still apply for the ERC by filing an amended Form 941X (Quarterly Federal Payroll Tax Return) for the quarters in which the company was an eligible employer. .
