COVID-19 Joint Information Center Update: May 7, 2021

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Current Regulation Clarifies and Expands CARES Act Worker Retention Credit score

The Inner Income Service urges employers to make the most of the newly-extended worker retention credit score, designed to make it simpler for companies that, regardless of challenges posed by COVID-19, select to maintain their workers on the payroll.

 

The Taxpayer Certainty and Catastrophe Tax Reduction Act of 2020, modified and prolonged the Worker Retention Credit score (ERC), for six months by June 30, 2021. A number of of the adjustments apply solely to 2021, whereas others apply to each 2020 and 2021.

 

Efficient January 1, 2021, employers are eligible in the event that they function a commerce or enterprise throughout January 1, 2021, by June 30, 2021, and expertise both:

  1. A full or partial suspension of the operation of their commerce or enterprise throughout this era due to governmental orders limiting commerce, journey or group conferences attributable to COVID-19, or
  2. A decline in gross receipts in a calendar quarter in 2021 the place the gross receipts of that calendar quarter are lower than 80% of the gross receipts in the identical calendar quarter in 2019 (to be eligible primarily based on a decline in gross receipts in 2020 the gross receipts have been required to be lower than 50%).

 

On account of the brand new laws, eligible employers can now declare a refundable tax credit score in opposition to the employer share of Social Safety tax equal to 70% of the certified wages they pay to workers after December 31, 2020, by June 30, 2021. Certified wages are restricted to $10,000 per worker per calendar quarter in 2021. Thus, the utmost ERC quantity out there is $7,000 per worker per calendar quarter, for a complete of $14,000 in 2021.

 

For extra data, see:

 

Minority Enterprise Fund Based by 4 Neighborhood Banks:

4 banks have collectively dedicated as much as $1 million in interest-free loans to assist each startup and present minority-owned small companies throughout the sponsoring neighborhood financial institution markets. The financial institution serving Washington County is the Financial institution of Charles City. For particulars take a look at the hyperlink.  https://www.mybct.financial institution/banking-on-diversity/  

 

Please ahead this e mail to any minority-owned enterprise you could know that may very well be helped by this funding alternative. In case you or another enterprise wants assist with the mortgage course of please be at liberty to achieve out to Herb Melrath, SBA at [email protected] 

 

UNEMPLOYMENT INSURANCE FRAUD

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