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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

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

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.

Employee Retention Credit

The Infrastructure Investment and Jobs Act, (H.R. 3684) passed the Senate by a vote of 69–30 and now goes to the House of Representatives for consideration. The infrastructure bill would end the employee retention credit (ERC) early, making wages paid after Sept. 30, 2021, ineligible for the credit (except for wages paid by an eligible recovery startup business). Additionally, the IRS issued Notice 2021-49 Wednesday providing additional guidance regarding claiming the Employee Retention Credit (ERC) for employers who pay qualified wages after June 30, 2021, and before January 1, 2022.  Some important updates from the Notice are below:

Recovery startup businesses 

• Are businesses that began operations after February 15, 2020, whose average annual gross receipts for a three-taxable-year period ending with the taxable year which precedes such quarter does not exceed $1,000,000, and
• Experiences a full or partial suspension of operations due to a governmental order or experiences significant gross receipts decline.

PPP Loans & Forgiveness Applications are Finally Due. 

Borrowers who received their Paycheck Protection Program in April (and May) 2020 will need to apply for forgiveness ASAP. The PPP loans will convert to a standard five-year loan at 1% interest if the borrower does not submit their forgiveness application within ten months of the end of the covered period.

Let’s say, for example, you received your loan on April 20, 2020. The end of your covered period (if you elected 24 weeks) is October 4, 2020, and your due date is August 4, 2021. You must submit the application before then to avoid making payments.… Read More

On Thursday, March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (ARPA), a massive $1.9 trillion legislative package intended to address the extraordinary impact of the coronavirus pandemic over the past year.  ARPA includes provisions on aid to state and local governments, hard-hit industries and communities, tax changes affecting individuals and businesses, and more.

Join Bob Simpson and Kristen McCabe in their 20^th webinar on Wednesday, March 24, to discuss the bill’s critical components and answer any questions you have on this new legislation.

Topics will include

• An overview of The American Rescue Plan Act of 2021
• ERC and PPP Update
• The Restaurant Revitalization Fund (RRF)
• Q&A

CLICK HERE TO REGISTER

The creation of the RRF will be a catalyst to reviving restaurants and saving jobs across the country. … Read More

Brinker Simpson hosted a webinar on Thursday, January 28, 2021, to discuss key concepts of the Employee Retention Credit (ERC), related practical advice, and examples.

A recording of the presentation and Q&A can be viewed HERE.

You can also download the PowerPoint slides HERE. 

If you or someone you know would like to receive information about our upcoming news, webinars, and events, please email lcontino@brinkersimpson.com. 

Please contact cares@brinkersimpson.com with any questions, concerns, or topics you’d like us to cover. 

Disclaimer: This alert is for informational purposes only and does not constitute professional advice. Information contained in this communication is not intended or written to be used as tax advice & cannot be used by the recipient to avoid penalties imposed under the Internal Revenue Code.… Read More