We hope you had a great Labor Day Weekend!
Here's what to pay attention to this September...
This newsletter will cover:
Employee Retention Credit (ERC) Extended
2nd Round PPP Forgiveness
Estimated Tax Payments
Corporate Return Due September 15th
Employer Retention Credit Extended Until End of 2021
As a refresher, the ERTC is a refundable payroll tax credit that was introduced as part of the original CARES Act in March 2020 and allows businesses to receive up to $5,000 per employee in their tax refund if they can prove they had a revenue reduction in 2020 (or other types of qualification). In early August, the Internal Revenue Service (IRS) released guidance on the extension and modification added by the American Rescue Plan Act, providing more info on how businesses can claim the ERTC in the third and fourth quarters of 2021.
We have calculated the credits for the first quarter of 2021, and it appears that everyone at this point has started getting their Q1 refunds. When you get a refund, make sure to deposit the check to your business account. Additionally, you should deposit this check separately from any other check so that we are able to track it. It would be helpful if you would also photocopy the check and send it to us for our records. Q2 has just wrapped and we are calculating those credits. Keep in mind that amendments can take up to 3 months. Please remember to send us any and all information pertaining to this credit that can help us file on your behalf.
2nd Round PPP Forgiveness | Portals Open
The second PPP loan came from the second stimulus bill passed on December 27th, 2020. The deadline for submitting forgiveness is 10 months after your covered PPP period.
If you haven't already, we encourage you to forward us your PPP loan information and documentation ASAP.
This includes any and all communication you have received from your bank. Bank communications contain unique links that we will have to click to fill out the information on your behalf. You can forward any emails to our team.
Portals for the 2nd round of PPP should be open, and the Small Business Administration says to file forgiveness through your bank, but it does depend on which bank.
We know this is a complicated subject, so please know that we are here to help you. We want to make sure everything is filed correctly for you so that deadlines are met and forgiveness can be achieved.
Any questions, please let us know, we are happy to help.
Estimated Tax Deadlines
Estimated taxes for businesses will be due soon, 9.15.2021. If we do not have the information for the first seven months of the year, please get it to us as soon as possible.
Estimated taxes are due four times during the year. We can help you prepare and send these when they are due, but we need all information ahead of time to do so. Thank you!
Corporate Return Due September 15th
If your business requested an extension to file corporate tax returns, this is a reminder that they are due September 15th. This means we need all information ahead of time to file for you before the deadline.
If these taxes are not filed before the deadline, you could incur penalties, interest, and/or any remaining tax.
Thank you!