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Sheepdog1833
LSU Fan
Member since Feb 2019
582 posts
 Online 

Employee Retention Credit and PPP

I’m just seeing the ERC program’s existence under the CARES Act.

Can someone explain its main points and eligibility requirements?
My company is an SCorp and received two rounds of PPP payouts.


9BREES9
New Orleans Saints Fan
Thibodaux
Member since Jan 2009
1297 posts

We recently learned of this as well. The way it was stated to us, in basic terms, is that if you received PPP funds and your loan was fully forgiven, then you are eligible for the retention credit.

We did a brief phone/video survey for certain questions. Afterwards they asked for specific hard docs to submit. All in all it took about 3-4 weeks to receive our full concrete amount to be received. Also, ERC doesn’t receive a dime unless you’re eligible. Nothing ventured, nothing gained.


PUB
LSU Fan
New Orleans
Member since Sep 2017
12961 posts



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Weagle25
Auburn Fan
THE Football State.
Member since Oct 2011
42560 posts

Were you mandated to be shut down or did your revenue dip in either 2020 or 2021 when compared to 2019?

If so &you have employees, then its worth talking to somebody about.


VABuckeye
Ohio State Fan
Naples, FL
Member since Dec 2007
32129 posts
 Online 

You have to have had a matching quarter to quarter 50% reduction in gross receivables. We never hit that low water mark. Once you hit 80% of the preceding years quarter or above you then become ineligible for the credit.

That's it in a nutshell.



Murray
New York Mets Fan
Member since Aug 2008
13473 posts

If you pay a consultant a % of your fee to complete the form, you’re a fool. Find a CPA that will do it for much less.


OysterPoBoy
USA Fan
City of St. George
Member since Jul 2013
28339 posts

quote:

You have to have had a matching quarter to quarter 50% reduction in gross receivables. We never hit that low water mark. Once you hit 80% of the preceding years quarter or above you then become ineligible for the credit.


That’s not true anymore. They greatly expanded it. If you had supply issues or had to shut down for a bit you are eligible.


Tigerpaw123
USA Fan
Louisiana
Member since Mar 2007
16271 posts

quote:

The way it was stated to us, in basic terms, is that if you received PPP funds and your loan was fully forgiven, then you are eligible for the retention credit.


What???? I thought just the opposite, that if you got PPP and loan was forgiven than you were NOT eligible????


gothamdawg
Georgia Fan
NYC
Member since Nov 2015
598 posts

The ERC can be a significant amount. You basically get a refund of the employment taxes you paid.

Get a CPA and don't mess around. I have clients who've received hundreds of thousands of dollars.


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ithad2bme
LSU Fan
Houston transplant from B.R.
Member since Sep 2008
3302 posts

I’m hearing a bunch of ads for this lately. Our fractional CFO who does our books/taxes told us about this a while back and applied for it. I think it is based on quarterly numbers because he said we would get 3 checks, 2 of which we received already.

If you are paying someone for financial advice they probably should have been aware of this and applied for you.


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USA
Member since 2001
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OTIS2
LSU Fan
NoLA
Member since Jul 2008
47830 posts

Our CPA offered the service. We had a nice recovery.


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10
OTIS2
LSU Fan
NoLA
Member since Jul 2008
47830 posts

quote:



What???? I thought just the opposite, that if you got PPP and loan was forgiven than you were NOT eligible????


Not the case. We did both.


Catchfalaya
LSU Fan
Member since Feb 2018
1671 posts
 Online 

If your business suffered a significant loss in revenue I believe more than 50% compared to any quarter in 2019 you’d be eligible. I don’t think anyone who got a PPP can apply for this, it would break the system.


Mingo Was His NameO
LSU Fan
Brooklyn
Member since Mar 2016
23441 posts

quote:

The way it was stated to us, in basic terms, is that if you received PPP funds and your loan was fully forgiven, then you are eligible for the retention credit.


quote:

I don’t think anyone who got a PPP can apply for this, it would break the system.



This is why you don't get financial advice from the internet.

And I thank you all for keeping my bills paid


ithad2bme
LSU Fan
Houston transplant from B.R.
Member since Sep 2008
3302 posts

quote:

Not the case. We did both.


We did as well, I was surprised that we were eligible to get the retention money. I pay my fractional CFO pretty well to manage our finances, but he saves us more than we pay him every year, and he was all over this and the fact that we qualified for it.


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20
baldona
Auburn Fan
Florida
Member since Feb 2016
17420 posts

quote:

This is why you don't get financial advice from the internet. And I thank you all for keeping my bills paid


This Covid recovery has been a clusterfrick, CPAs, bankers, etc have been all over the place on these as they have been very unclear. Especially if you needed/ wanted to act quickly. If you simply talked to one CPA and didn’t go ‘on the internet’ it’s just as easy to get fricked.


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VABuckeye
Ohio State Fan
Naples, FL
Member since Dec 2007
32129 posts
 Online 

quote:

That’s not true anymore. They greatly expanded it. If you had supply issues or had to shut down for a bit you are eligible.


Thank you for the clarification. I just filled out an eligibility survey online.

Is it a full credit for the affected quarters? We were smaller then but it would be almost $40k for us which is huge.


MintBerry Crunch
LSU Fan
Member since Nov 2010
3973 posts

I can help you out. I just did my first ERC. I can walk you through the process or do it for you for a fee.


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MintBerry Crunch
LSU Fan
Member since Nov 2010
3973 posts

its up to $5000 per employee in 2020 and up to $7000/quarter for employee in 2021. Have to have a sig. decline in business or a full or partial govt shutdown.


MintBerry Crunch
LSU Fan
Member since Nov 2010
3973 posts

quote:

If your business suffered a significant loss in revenue I believe more than 50% compared to any quarter in 2019 you’d be eligible. I don’t think anyone who got a PPP can apply for this, it would break the system.


Its 50% decline in revenue from Q1,2,3,4 2019 to same quarter 2020 and 20% decline from 2019 to same quarter 2021.

PPP companies are eligible. Just helped one get a little more in ERC credits that they got in PPP funds.


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