Multiple Tax Credits/Benefits Available; TIMING CRITICAL
Did you know there are tax credits available for paying employees that are not working?
Did you know there are tax credits available for paying employees that never stopped working?
There are even tax benefits available for individuals. All worth reviewing.
In response to the pandemic pandemonium; the IRS has created a multitude of IRS Tax Credits - available to employers and individuals! In addition to employers that continue to pay employees; even though the employees weren't working (ERC - Employee Retention Credit); there are several other tax credits for employers that continued to work. Some of the credits can be realized quickly; others at year-end; and available through December 31, 2020.
TIMING IS CRITICAL! It must be noted that taking some of these credits, AT THE SAME TIME as utilizing PPP funds, COULD be considered double-dipping; and clearly jeopardize some or all of the forgiveness-factor of the PPP! (Watch JJ the CPA's video!)
At this time, SOP.Solutions is not planning to provide direct support for implementing or managing these tax credits. Instead, we are promoting the services of a professional payroll service. In fact, this seems like an opportune moment to re-post my rant. . .
Please let me digress for a minute . . . I have spent too much of my work-life reconciling bad payroll; even sadder, most payroll managed in-house is off. While I’m good at it😉; trust me, it is worth the payroll ‘cost’ to be able to tell the service – ‘there’s a problem’ and let their team of folks correct it with the EFTPS, SUTA, Child Support/garnishment agencies and all of the required payroll reports! Trust me – it’s also cheaper!
Payroll is such a pivotal area of every business; and in reviewing and gathering this information; I have had to repeatedly reiterate (yes, I did feel the need for this necessary redundancy) how payroll is supposed to happen. If you are THE member of an S-Corp, should you be getting a W-2? Probably so, and warrants another conversation. Are your independent contractors really independent or employees?
Not suggesting they are the best; but ADP & Paychex are certainly the biggest and maintain a WEALTH of great info on their sites! With responsible, knowledgeable and convenient SERVICE being the most important aspects of your payroll provider; they are there - I was on the phone on Christmas DAY one year resolving a paycheck issue! Morgan of ADP and Steven Paul of Paychex excitedly represent their companies; understand their programs and specials; and are there to help!
We are not researching or trying to provide the best payroll solution; but acknowledging when this same information is required for the reporting to support the PPP expenditures; a payroll service will be appreciated. Thank you. I do feel better😉
Get a payroll service! THEY HAVE GREAT SPECIALS DURING OUR SOCIAL DISTANCING! Not limited to ADP & Paychex; we just happen to have GREAT contacts with these groups; but happy to review other services. (Still, don’t hesitate to ask for an introduction. We also have their cell numbers😉
ADP - Morgan Skiba Morgan.Skiba@adp.com
Paychex – Steven Paul Brown firstname.lastname@example.org
Form 7200 - Advance Employer Credit Due to COVID-19