COVID-19 - LATEST UPDATES

Our commitment to you…

We are experiencing an unprecedented event in history and during this time we understand that communication is paramount. Our Team is dedicated to keeping you informed as events and news unfolds. Be assured that we are organized and in place to continue to service clients with dedicated payroll experts. When you call, we will answer.

As immediate and long-term recommendations emerge, we will continue to post updates and share best practices and tips about productivity.

 

Current Updates

June 11, 2021
 
 
ERTC update, including the addition of the Recovery Start-Up Business
 
As more businesses learn about the advantages in the ERTC, the latest pandemic relief legislation has widened the playing field and opened opportunities to more businesses than before. The American Rescue Plan broadened the ERTC to include “Recovery Start-Up Businesses” in its qualifications.
Recovery start-up businesses are employers who began a new trade or business after February 15, 2020. Eligibility for the ERTC now includes those businesses, along with those with revenue under $1 million, over the previous 3 years, who were not closed due to government order and did not experience a significant decrease in gross receipts compared to the same quarter in 2019.
 
The ERTC Recovery Start-Up provisions can be claimed for 3rd and 4th quarters 2021.
 
This development dramatically increases the number of small businesses who can benefit from the tax credits, as well as extending the relief opportunities for businesses going forward. Business owners, including owners of new businesses, should consult their payroll professionals for more information about claiming the credit.
 
 
KEY DETAILS
Recovery Start-Up Business. A "Recovery Startup Business" is an employer –
  1. that began carrying on a trade or business after February 15, 2020;
  2. whose average annual gross receipts (determined under rules similar to Code Sec. 448(c)(3)) for the three-tax-year period ending with the tax year that precedes the calendar quarter for which the credit is determined are not more than $1 million (this would be for those who started a new TRADE under an existing business); and
  3. that, for the calendar quarter, did not have its operations fully or partially suspended under government order due to COVID-19, and did not have gross receipts that were less than 80 percent of those for the same calendar quarter in calendar year 2019 (Code Sec. 3134(c)(5), as added by the American Rescue Act).
    The ERTC is limited to $50,000 for a Recovery Start-Up Business.
    Business owners and new business owners should consider qualifications under the Recovery Start-Up Business rules.

 

For more information, please see the US Dept. of Treasury website: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-small-businesses/small-business-tax-credit-programs
 

This information is as of 6-11-2021, please consult with your advisors or payroll professionals when claiming the credit.

April 12, 2021

ERTC is a very important topic for small and medium sized businesses. Tricia Petteys, Co-Founder and COO of Payroll Vault shared some great insights regarding challenges companies are facing during the pandemic and how successful companies are utilizing the available help. Listen to what she has to say here if you want to find the money that the government is rewarding you for keeping your employees during the pandemic.

 

March 19, 2021

Tricia Petteys, COO/Co-founder of Payroll Vault Franchising, answers questions regarding the Employee Retention Tax Credit available to businesses.

March 16, 2021

As part of Payroll Vault’s commitment to providing businesses with knowledge on the latest legislation pertaining to their operations, here are the most frequently asked questions regarding the Employee Retention Tax Credit. We will be sharing updates as they come through. If you have any questions, please reach out to us for more specific information.

ERTC FAQS

 

March 10, 2021

Karen with Cheers to Business podcast speaks with Tricia Petteys, COO/Co-founder of Payroll Vault Franchising to learn more about the details of the ERTC.
 
What is it? Do you qualify? Why should you work with a payroll professional?
 
Listen to The Employee Retention Tax Credit Whisperer to learn about how the Employee Retention Tax Credit and how it can help your small and medium sized business financially impacted by COVID-19.

 

 

RESOURCES

We are eager to help small and medium sized business owners with solutions to continue employing, supporting, and paying their employees during the Covid 19 pandemic. There are several resources to support business and their employees based on specific situations. Below is a summary of business and payroll related benefits that may be available. Please contact us to support administration of your resources and credits. Important item to note, please let us know if you have taken advantage of the Paycheck Protection Program (PPP) and if so, have you been granted forgiveness. This will affect how you can utilize available programs. We also expect several continued updates and changes to current resources and legislation.

2021 COVID Support Updates

There have been many recent changes and updates that continue to provide potential resources for our clients. The 2nd round of PPP loans and the updated Employee Retention Credit rules may bridge financial gaps for our clients who continue to need them. Please refer to the links below and reach out to us for more details.

Small and medium sized Business Relief Links

Please use these links to access resources and information that is available to support business and related employment of staff.

Families First Coronavirus Response Act (FFCRA)

What is it: Employers with under 500 employees are required to provide family leave and/or sick pay to their employees who:

The FFCRA provides a credit for up to 100% of the employee’s wages for sick or quarantine pay and up to 2/3 for other care or childcare

Collecting information: If employees need to take time off for any of the above reasons, you will need to collect documentation and may need to track the hours via a timekeeping solution.

How it works: The credit is taken against federal payroll taxes and is immediately available as you run payroll. If the credit exceeds the tax total due, you can submit a form to the IRS to receive a refund for the difference.

Contact us today to take advantage of this credit. If you have received PPP or EIDL funding, you can still take advantage of this credit, but there are details to consider. Your local Payroll Vault office is happy to help.

States and Local Governments are also offering resources.

Contact directly or refer to your State and Local government website.

Small and medium sized Business – 3 Step Action

  1. Research Options
  2. Contact us
  3. Initiate Plan supported by Payroll Vault

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