Author Topic: IRS Tax Credits Available for Business (FFCRA and ERTC)  (Read 15329 times)

Offline cgr

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IRS Tax Credits Available for Business (FFCRA and ERTC)
« on: May 18, 2020, 02:45:13 PM »
We have a thread for PPP & EIDL as well as for UI. Time to tackle tax credits.
Would be a shame if anyone missed out on these...

To get started:
https://www.irs.gov/coronavirus/new-employer-tax-credits

You can claim FFCRA credits if you received a PPP loan, just not during the same overlapping period.
You cannot claim ERTC if you received a PPP loan.

Offline mgarfin

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #1 on: May 22, 2020, 10:02:36 AM »
FFCRA vs UI

Well no, it's not UI.
UI is between $704 ($104+$600) and $1104 ($504+$600) weekly.
FFCRA can be between $1,000 and $1,400 weekly for those earning $1,500-$2,100+ depending on how days worked are calculated.
UI is for 39 weeks, FFCRA for 12...

Offline mgarfin

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #2 on: May 22, 2020, 10:03:54 AM »
In order to claim FFCRA
Can the employee work anything?

The credit is given for employees that can't work as they are caring for their children.

In case we're the employee can only put in minimum amount of work can we still pay him 2/3 of salary and claim the credit?

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #3 on: May 22, 2020, 10:05:02 AM »
UI is 39 weeks.  But not the federal $600

Correct- thanks for pointing that out.
I guess once the UI drops to regular rates, FFCRA could be an attractive option.

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #4 on: May 22, 2020, 10:05:42 AM »
In order to claim FFCRA
Can the employee work anything?

The credit is given for employees that can't work as they are caring for their children.

In case we're the employee can only put in minimum amount of work can we still pay him 2/3 of salary and claim the credit?

No, the employee shouldn't be working.
If they're working it's intermittent, and only the portions not worked for qualify for the credit.

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #5 on: May 25, 2020, 12:25:00 PM »
The CARES Act added the following provision to the FFCRA laws:
Workers that were laid off after March 1, 2020, but then rehired, are eligible for paid FMLA leave provisions described in the FFCRA immediately instead of needing to be an employee for 30 days.

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #6 on: May 25, 2020, 03:49:01 PM »
Check out my signature for detailed posts on FFCRA and ERTC.
« Last Edit: May 25, 2020, 05:19:02 PM by cgr »

Offline mgarfin

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #7 on: July 29, 2020, 08:55:00 AM »
Anyone filling your Q2 941 don't forget to count your FFCRA credit

There's big money there

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #8 on: August 09, 2021, 05:49:41 PM »
Here's the latest from the IRS on ERTC: https://www.irs.gov/newsroom/treasury-irs-provide-additional-guidance-to-employers-claiming-the-employee-retention-credit-including-for-the-third-and-fourth-quarters-of-2021

Includes details on Startup ERC and eligibility for majority corporation owners and their spouses- the rule is absolutely ludicrous, and basically says that if the majority owner has no living relatives then the owner and spouse qualify, but if there are living relatives (defined as siblings, half-siblings, ancestors, or lineal descendants) then the owner and spouse don't qualify.

Offline TBD

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Offline YitzyS

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #10 on: August 20, 2021, 02:55:05 PM »



Offline 123-Rosh

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #11 on: August 22, 2021, 06:41:59 AM »
How quickly is the IRS processing 941-x?

Offline 123-Rosh

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #12 on: August 22, 2021, 03:44:06 PM »
How quickly is the IRS processing 941-x?
@cgr

Offline TBD

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #13 on: August 22, 2021, 07:49:46 PM »
How quickly is the IRS processing 941-x?
I dont think anyone knows the answer because its just not getting processed :o

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #14 on: August 23, 2021, 10:34:34 AM »
How quickly is the IRS processing 941-x?

https://www.americanpayroll.org/news-resources/apa-news/news-detail/2021/05/27/irs-updates-status-of-processing-forms-941-941-x

As of May 6, the agency had about 200,000 Forms 941, Employer’s Quarterly Federal Tax Return, received prior to 2021 to process and a total of 1.9 million unprocessed Forms 941 from the current and previous years waiting to be opened.

As of May 7, the IRS had approximately 100,000 unprocessed Forms 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund, which cannot be processed until the related Forms 941 are processed.

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #15 on: November 06, 2021, 10:06:31 PM »
The new infrastructure bill ends ERTC as of Q3 2021, so it's no longer available for Q4.
Startup ERC is available through Q4.

Offline Dawie

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #16 on: November 06, 2021, 10:24:17 PM »
The new infrastructure bill ends ERTC as of Q3 2021, so it's no longer available for Q4.
Startup ERC is available through Q4.
I know we were sort of warned about this, but this is insane

Offline TBD

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #17 on: November 07, 2021, 12:09:55 AM »
The new infrastructure bill ends ERTC as of Q3 2021, so it's no longer available for Q4.
Startup ERC is available through Q4.
. Don't write off the libs.
it still doesn't have the presidents signature

Offline AsherO

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #18 on: November 07, 2021, 12:22:49 AM »
. Don't write off the libs.
it still doesn't have the presidents signature

Is there a reason he wouldn't sign it?
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline TBD

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #19 on: November 07, 2021, 12:39:16 AM »
Is there a reason he wouldn't sign it?
if the reconciliation package will fail in senate and the libs will hold him hostage over it