Brinker Simpson

The Employee Retention Credit (ERC) enacted in 2020 to help businesses weather the economic fallout of the COVID-19 pandemic is no longer available for most businesses during the fourth quarter of 2021. Employers who already received advance payments of the ERC for Q4 2021, or who reduced payroll taxes for the same period, have remedies available to avoid penalties.

Background on the Employee Retention Credit Being Repealed

The ERC was repealed for Q4 by a provision in the recently enacted $1.2 Trillion Infrastructure Investment and Jobs Act. Since Congress acted in March to extend the ERC through Q4, it’s unusual that the credit was repealed only six months later.… Read More

REMINDER: COVID EIDL Deadline Approaching

By Lauren Contino

On December 20, 2021

In Financial Resources

Important reminder! The deadline to apply for the COVID Economic Injury Disaster Loan (EIDL) is December 31, 2021. See below for further details.

EIDL loan and Targeted Advance applications will be accepted until December 31 and will continue to be processed after this date until funds are exhausted.
Supplemental Targeted Advance applications will be accepted until December 31; however, the SBA may be unable to process some Supplemental Targeted Advance applications submitted near the December 31 deadline due to legal requirements. The SBA cannot continue to process Supplemental Targeted Advance applications after December 31.
Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan origination date or until the funds are exhausted, whichever is soonest.

Restaurant Revitalization Fund Recipients: Important Reporting Deadline Approaching

By Lauren Contino

On December 15, 2021

In Federal, Financial Resources, State/Local

The Restaurant Revitalization Fund (RRF) was a lifeline for food and beverage providers, helping them rebuild from the effects of pandemic-related revenue loss. The RRF, established under the American Rescue Plan Act (ARPA), became public law on March 11, 2021. ARPA appropriated $28.6 billion for RRF, authorizing the U.S. Small Business Administration (SBA) to award funds.

Eligible entities were businesses that were not permanently closed, where the public or patrons assembled for the primary purpose of being served food or drink.

Generally, awards were equal to the decline in gross receipts in 2020 compared to 2019. They were limited to $5 million per location, not to exceed $10 million total for the applicant and any affiliated businesses.… Read More

Brinker Simpson COVID Relief Brief – Tuesday, November 09, 2021

By Lauren Contino

On November 9, 2021

In Uncategorized

Employee Retention Credit (ERC)

Our previous newsletter indicated the potential early termination of the Employee Retention Credit (ERC) due to a provision in the Infrastructure bill passed by the Senate in August. The House of Representatives passed the Infrastructure Investment and Jobs Act on November 5, 2021, accepting the amendments the Senate had made to the bill. The President is expected to sign the bill.

The legislation makes wages paid after Sept. 30, 2021, ineligible for the credit (except for wages paid by an eligible recovery startup business).

Recovery startup businesses would remain eligible through December 31, 2021.

If you have not determined if you are eligible for the ERC, you still have time. … Read More

Philadelphia Launches New City Tax Site

By Lauren Contino

On October 29, 2021

In Financial Resources, Pennsylvania, State/Local

In fall 2021, Philadelphia taxpayers will start using a new website, the Philadelphia Tax Center, to file and pay City taxes electronically. This change is part of a two-phase process to replace their tax system of record. The new system will allow the Department of Revenue to provide individuals with better customer service.

Starting in November, you can start using the new website. The site is the best way to pay, file, and amend business taxes for 2015 and later. Eventually, you will find all our taxes and online services on the site.

In phase one (Nov. 2021), you can:

File and pay Philadelphia’s central business taxes.

Pennsylvania Opens Up $655 Million In Grants for Child Care Providers

By Lauren Contino

On October 15, 2021

In Financial Resources, Pennsylvania, State/Local

The Pennsylvania Department of Human Services is distributing $655 million in American Rescue Plan Act Stabilization Grants to child care providers in the commonwealth.

Licensed child care providers can apply for grants to cover almost any expense needed to continue operations and fight the impacts of COVID-19. Directors, owners, administrators and/or designated fiscal staff members can access the application for their program under the Keystone STARS/Grants tab in their organization’s profile.

The funding is available for child care providers with a good standing license that has been open since March 11, 2021, or will reopen by the end of September.

The total grant amount is based on

Current enrollment
Infant/toddler care
Keystone STAR designation
Reduced Child Care Works (CCW) enrollments
The geographic location of a provider.

Brinker Simpson COVID Relief Brief – Wednesday, October 13, 2021

By Lauren Contino

On October 13, 2021

In Uncategorized

Employee Retention Credit (ERC)

Our previous newsletter indicated the potential early termination of the Employee Retention Credit (ERC) due to a provision in the Infrastructure bill passed by the Senate in August. If the bill passes the House with no amending provisions, wages paid after 9/30/21 would be ineligible for the credit. Recovery startup businesses would remain eligible through December 31, 2021.

Last month, a group of former lawmakers released an open letter expressing bipartisan opposition to proposals to retroactively end the Employee Retention Credit before the end of the fourth quarter of 2021. We are following the legislation closely and will provide updates on any changes to the status and content of the bill.… Read More

In Case You Missed It: Brinker Simpson Single Audit Update Webinar 10/5

By Lauren Contino

On October 6, 2021

In Federal, Financial Resources, Webinars

As a result of funding received through the various government programs, there will be at least 10,000 first-time single audits. With that said, each program funded through the CARES Act, Secure Act, CRRSA Act, and ARPA has unique guidance and compliance requirements.

In a webinar on Tuesday, October 5, 2021, Brinker Simpson’s Audit Manager James Trubenbach-Byrne, CPA, walked us through the major COVID-19 funded programs and guidance on the reporting and compliance requirements. James also offered an in-depth review of each compliance attribute. Linda Scafiro, CPA, a partner at the Firm, joined James to answer questions and help address various concerns.… Read More

IRS: New contracts awarded to private collection agencies; taxpayers may be contacted by one of three groups

By Lauren Contino

On September 23, 2021

In Federal, Financial Resources

The Internal Revenue Service has awarded new contracts to three private-sector collection agencies for the collection of overdue tax debts. The new contracts begin Thursday following September 22nd’s expiration of the old contracts.

Beginning Thursday, Sept. 23, 2021, taxpayers with unpaid tax bills may be contacted by one of the following three agencies:

CBE Group, Inc.
PO Box 2217
Waterloo, IA 50704
800-910-5837

Coast Professional, Inc.
PO Box 526
Albion, NY 14411
888-928-0510

ConServe
PO Box 307
Fairport, NY 14450
844-853-4875

Notification by IRS and the private collection agencies
The IRS will always notify a taxpayer before transferring their account to a private collection agency (PCA).… Read More

Brinker Simpson COVID Relief Brief – Wednesday, September 15, 2021

By Lauren Contino

On September 15, 2021

In Uncategorized

COVID-19 EIDL limit increase to $2 million

The U.S. Small Business Administration (SBA) announced several updates to the COVID-19 Economic Injury Disaster Loans (EIDL) program, including raising the loan cap from $500,000 to $2 million. All changes are effective immediately. In addition to the expanded cap, the most important changes are outlined below:

Implementation of a deferred payment period

Payments are deferred for the first two years (during which interest will accrue). Previously, the SBA had indicated an 18-month deferment period for loans made during 2021.

Establishment of a 30-day exclusivity window

SBA said it is implementing a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less.