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Understanding The Classification Between PPP Loans and ERC

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The Covid-19 pandemic has led to the closure of 34% of the small businesses in the United States in 2020. The US government issued the Coronavirus Aid, Relief, and Economic Security (CARES) act, as there were many business losses during the pandemic. In addition, the CARES Act established the Paycheck Protection Program (PPP) and the Employee Retention Credit (ERC). This blog provides an outline of the PPP and ERC. It further evaluates the distinguishing factors between the Paycheck Protection Program and the Employee Retention Credit. And provides a clear line of  difference between PPP and ERC . Know The Paycheck Protection Program  Established in March 2020, the small business administration (SBA) designed the Paycheck Protection Program. The PPP acts as an incentive for small businesses to keep their workers employed during the beginning of the coronavirus pandemic. With the help of this program, the businesses can take out a second loan and the first loan.  You need the following
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Employee Retention Tax Credit Estimate Calculator

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Several business owners worldwide must have struggled to make ends meet during the coronavirus crisis. Still, a tax credit like the Employee Retention Credit must have come into the picture as it is more easily accessible than several popular relief options such as grants and loans. If you have no idea how tax credits work and want to learn more about available tax credits, use our estimator for employee retention tax calculation . But before that, we need to know more about employee retention credit and its significance for business owners.  Read More : Employee Retention Tax Calculation
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Employee Retention Tax Credit: Explained By The IRS Guide

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  Small businesses constitute around 99.9% in the US. Almost half of the private workforce are these business employees of the small business. Unfortunately, this sector got hit during the pandemic, which has caused a drastic impact on the employers and the employees. It started way back in 2019, and many continue to struggle because of the coronavirus. To counter this and soothe the employers' dilemma, then US President Donald Trump made the CARES Act into a fully-fledged law on March 27, 2020, and this CARES act includes the employee retention tax credit IRS guidance. The Employee Retention Credit (ERC) is an economic relief initiated to help businesses throughout the pandemic. As the name suggests, it's a refundable tax credit against certain employment taxes to help keep employees on the payroll. Source : CPA Due Diligence #EmployeeRetentionTaxCreditUpdates #EmployeeRetentionTaxCreditIRSGuidance
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Unknown Impacts Of The Omicron Variants On The ERTC Deadline?

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The omicron variant of the coronavirus is one of the latest waves that humanity is experiencing. The virus has spread all around the globe instantly, which caused a sense of fear and trauma among the people. This has further led to new cases and lockdown extensions. However, this new variant is more contagious than the previous ones, and fully vaccinated people are also getting infected by this. Under this background, you may be wondering about the Covid impact ERC deadline to safeguard your business. Well, if that’s the case, then this blog is for you. Since the pandemic, the government has introduced various Covid relief packages, including the CARES Act, Consolidated Appropriations Act, and the American Rescue Plan. Several initiatives were also taken for the businesses which avoided laying off employees, such as the Employee Retention Credit. Although these were some of the spectacular measures by the government in one way or the other, these are impacted by the new omicron varian
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Employee Retention Tax: How To Prepare Your Business For ERTC Funds?

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At the end of 2021, the employee retention tax credit is set to expire. However, this does not mean all the small businesses are out of time to take advantage of the credit. The precise details of the ERTC have changed since it was created by the Coronavirus Aid Relief and Economic Security (CARES) Act, which came into effect in March 2020. Following covid waves, the ERTC credit got multiple extensions, and there is a suspicion that the ERTC won't be in effect after December 31, 2021. The recent updates regarding ERTC have made it easy for businesses to attain benefits from it. Between the Consolidated Appropriations Act and American Rescue Plan, the IRS has uncomplicated its criteria for which businesses qualify and increase how much businesses affected by covid-19 can claim. This blog presents a breakdown of what has changed for the ERTC and how businesses can claim tax credit before it's too late.  Source : CPA Due Diligence #ERTCTaxCredit #ERTCCredit #HowToApplyForERTC  #H
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What Is The CARES Act? National Covid Relief for Businesses

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  What Is The CARES Act? National Covid Relief for Businesses The Covid-19 pandemic has triggered the worst job crisis in the history of humanity, which has led to an increase in poverty and widened inequalities. Some countries have taken various measures to cope with the covid situation to curb the increasing job crisis. During the lockdown situations, employers have struggled to manage their workforce and run their businesses effectively. As a result, the companies have faced challenges such as tight margins, a smaller workforce.  Another hurdle faced by most companies is implementing safety measures. It is strenuous to ensure the sanitizer application and corroborate that all the employees abide by the new norm. Following this rampant COVID wave, the CARES Act self-employment tax provides a ray of hope to many who have faced job loss or are on the verge of getting there. The CARES Act became a fully-fledged law in March 2020 and this Act was the most extensive economic stimulus pa
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Things You Need To Know About The Employee Retention Credit

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  The CARES (Coronavirus Aid, Relief, and Economic Security) act imbibes a business relief provision known as the employee retention credit. This credit is a refundable payroll tax credit for "qualified wages" paid to retain full-time employees from March 13, 2020, to December 31, 2020. The core aim of the ERC is to encourage employers to keep their employees on the payroll even if they are not working during the covid period.  The coronavirus has hit the business owners and the employees. In such a situation, the CARES act is a ray of hope. However, it is an excellent step in this direction; several queries and doubts are associated with it. Such as, what business owners can apply for the ERC? What are its primary benefits? Which businesses are eligible for this ? and so on.  Source : CPA Due Diligence #EmployeeRetentionCredit
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