Tax Breaks for Charitable Giving: Maximize Your Impact and Your Savings
Category: Business
The employee retention credit is a tax credit that Congress created as a part of the CARES act in 2020. It is an attractive credit because you can use it to offset income and payroll taxes. Additionally, even if you do not have enough tax to take advantage of the credit the IRS will write you a check.
The program was not popular in 2020 because initially companies could either apply for a PPP loan or take the employee retention credit. The PPP loan was generally a better deal, so not many companies opted for the loan instead of the credit.
The rules changed with the Omnibus COVID Relief Bill that Congress passed in December. The bill allows companies to take advantage of BOTH the PPP funding AND the employee retention credit. So this has quickly become a very interesting opportunity for many small businesses.
What the employee retention credit is worth:
If you have not yet received the credit for 2020 you can retroactively claim that credit now.
Element | For 2020 | 2021 |
First: Are You an Eligible Employer | A greater than 50% decrease in quarterly “gross receipts” (revenue) compared to same 2019 quarter; OR Full or Partial Suspension of Operations (“FPSO”) due to COVID-related government order. | A greater than 20% decrease in quarterly gross receipts and you can use the prior quarter to qualify (use Q4 2020 to claim the credit for Q1 2021). OR Full or Partial Suspension of Operations (“FPSO”) due to COVID-related government order. |
What Are Qualified Wages | Up to $10,000 total of wages If you had fewer than 100 employees in 2019 then All wages qualified while you are an “Eligible Employer” If you have more than 100 employees only wages paid to those employees “not providing services” qualify. | Up to $10,000 per quarter of total wages. If you had fewer than 500 employees in 2019 then wages qualified while you are an “Eligible Employer” If you have more than 500 employees only wages paid to those employees “not providing services” qualify. |
What is the credit amount | 50% of qualified wages up to $5,000 per employee. | 70% of qualified wages up to $7,000 per employee per quarter for a maximum of $14,000 per employee. |
PPP Interplay: Remember: PPP recipients can claim ERC for 2020 AND 2021, but cannot use the same expenses for ERC and PPP loan forgiveness.
There are a number of caveats and complexities, but we can help you find the resources to support you in determining whether or not you qualify for the credit and if you do qualify to help you claim it.
If you would like help, contact us here, we will connect you to the right expertise so that you can claim any credit that you qualify for.
Category: Business
Category: Business
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Jeff Coyle, CPA, Partner of Rosenberg Chesnov, has been with the firm since 2015. He joined the firm after 20 years of business and accounting experience where he learned the value of accurate reporting, using financial information as a basis for good business decisions and the importance of accounting for management.
He is a diligent financial professional, able to manage the details and turn them into relevant business leading information. He has a strong financial background in construction, technology, consulting services and risk management. He also knows what it takes to create organizations having built teams, grown companies and designed processes for financial analysis and reporting.
His business experience includes:
Creating and preparing financial reporting, budgeting and forecasting.
Planning and preparation of GAAP and other basis financial statements.
Providing insight on financial results and providing advice based on those results.
Jeff also has a long history of helping individuals manage their taxes and plan their finances including:
Income tax planning and strategy.
Filing quarterly and annual taxes.
Audit support.
General financial and planning advice.
Prior to joining the firm in 2015, Jeff was in the private sector where he held senior financial and management positions including Controller and Chief Financial Officer. He has experience across industries, including construction, technology and professional services which gives him a deep understanding of business.
Jeff graduated from Montclair State University, he is a CPA and member of the American Institute of Certified Public Accountants, New York State Society of Certified Public Accountants and New Jersey State Society of Public Accountants.
Jody H. Chesnov, CPA, Managing Partner of Rosenberg Chesnov, has been with the firm since 2004. After a career of public accounting and general management, Jody knows the value of good financials. Clarity, decision making, and strategy all start with the facts – Jody has been revealing the facts and turning them into good business results for more than three decades.
He takes a pragmatic approach to accounting, finance and business. His work has supported many companies on their path to growth, including helping them find investors, manage scaling and overcome hurdles. His experience and passion for business reach beyond accounting and he helps businesses focus on what the numbers mean organizationally, operationally and financially.
He has a particular expertise in early-stage growth companies. His strengths lie in cutting through the noise to come up with useful, out of the box, solutions that support clients in building their businesses and realizing their larger visions.
Prior to joining the firm in 2004, Jody was in the private sector where he held senior financial and management positions including General Manager, Chief Financial Officer and Controller. He has experience across industries, which gives him a deep understanding of business.
Jody graduated with a BBA in Accounting from Baruch College, he is a CPA and member of the American Institute of Certified Public Accountants and New York State Society of Certified Public Accountants.
In addition to delivering above and beyond accounting results, Jody is a member of the NYSCPA’s Emerging Tech Entrepreneurial Committee (ETEC), Private Equity and Venture Capital Committee and Family Office Committee.
He is an angel investor through the Westchester Angels, and has served as an advisor for many startup companies and as a mentor through the Founders Institute.