Various programs represented by acronyms could produce money for your business!
ERTC: Employee Retention Tax Credit.
Who? If you pay federal and/or state payroll taxes, you may be able to get a refund.
- The tax credit covers any employees working for you from Jan. 1, 2020 to Dec. 31, 2021 for whom you paid payroll taxes.
- For 2020, you may qualify for a refund of up to $5,000 per employee for the year.
- For 2021, you may qualify for a refund of up to $7,000 per employee per quarter.
- If you already filed your 941, you file an amendment to get your refund.
- If you have not filed your 941, you can ask for an advance for a month in that quarter. For instance, in Q1 2021, you can file Form 7200 for an advance on payroll taxes for January, February, and/or March.
- See your payroll processor, bookkeeper, or accountant for more details or contact me.
WOTC: Work Opportunity Tax Credit
What? WOTC is a federal tax credit for employers who hire individuals who found it difficult to get hired. These include veterans, the long-term unemployed, and ex-felons.
- The tax credit covers any qualified employees hired between Jan. 1, 2018 and Dec. 31, 2025.
How do you claim the credit? File Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit with your state workforce agency within 28 days after the eligible worker begins work.
File Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans as a credit against your employer’s share of Social Security tax.
RRF: Restaurant Revitalization Fund
Who? If you own a restaurant, bar, food truck, wine tasting room, a bakery, or brewery, you may apply for this grant which could be a large as the difference between your 2019 and 2020 gross revenue.
SVOG: Shuttered Venue Operators Grants
Who? Live performance venue operators, live performing arts organizations, museums, aquariums, movie theater operators, live venue promoters, theatrical producers, and talent representatives impacted by the pandemic. (For more info, see Journal of Accountancy).
Can you get the PPP and the SVOG?
- If you won your PPP on or after December 27, 2020, then your SVOG is reduced by the amount of any PPP you received.
To apply, go to www.svograntportal.sba.gov/s/
PPP: Paycheck Protection Program
What? A forgivable loan to pay your payroll and other necessary expenses.
To apply, contact Kathy Bazan for a list of lenders.