![]() ![]() Proper planning is necessary to ensure the long-term success of a business, but planning is difficult even in “normal” times. WK Member Owners Mark Gingrich, CPA, JD and Jeremy Morris, CPA discuss the changes to the ERC, including planning opportunities to assist your business in meeting the qualification requirements and strategies on how to optimize the ERC and PPP benefits for businesses eligible for both programs.ĭECEMBER 2020 Business Planning and Key Performance Indicators: What can they do for your business? Thus, the ERC is back in play for many businesses, including those that would not have qualified previously due to obtaining a PPP loan but are now retroactively eligible to claim a 2020 ERC. At the same time, Congress extended the ERC into 2021 with less stringent requirements to qualify and an enhanced credit calculation. The Consolidated Appropriations Act (CAA), signed into law on December 27 changed that by retroactively making the ERC available to businesses that received a PPP loan. As most businesses gravitated toward another program designed to help them continue paying employees – the Paycheck Protection Program (PPP) – the ERC was largely an afterthought because its benefits were unavailable to businesses with a PPP loan. Nearly one year ago the CARES Act introduced the Employee Retention Credit (ERC) as a way to encourage businesses to keep employees on payroll. MARCH 2021 SPECIAL SEMINAR Maximizing the Employee Retention Tax Credit: Planning effectively to receive maximum benefit from this recently expanded program. ![]() Kjersti Cory, Senior Vice President of GreatBanc Trust Company, Trevor Monnig, CFO of PFS Brands, and Steve Storkan, Executive Director of Employee Ownership Expansion Network drew on their respective experiences as an ESOP advisor and as a leader of a company that has made a successful transition to ESOP-ownership to discuss the benefits and challenges of implementing an ESOP strategy. An ESOP is not for everyone, however, and the benefits must be weighed against the complexities and costs. In addition, attributes of an ESOP can make it an attractive business strategy even in situations where succession planning is not a primary motivation. An ESOP can provide a tax-efficient exit strategy for a business owner, while maintaining local ownership of the business and creating an additional benefit for employees. One such option is an Employee Stock Ownership Plan, or ESOP. Making the transition of a business successful (no matter how success is defined – maximizing the value of the buyout, creating a seamless transition to the next generation, maintaining local ownership, etc.), requires a business owner to establish what goals are important to them in an exit, review their business’s strengths and weaknesses, and evaluate those goals and business attributes against the exit options available to them. SEPTEMBER/OCTOBER 2021 SEMINAR Preparing Your Business to Prosper With or Without You – The ESOP Solution WK Member Owners Mark Gingrich, CPA, JD and Jeremy Morris, CPA reviewed rules for claiming and calculating the credit, examined common eligibility arguments in the light of IRS guidance, and reviewed a timeline of government orders in our communities. ![]() As various companies have emerged in recent months making aggressive claims regarding broad eligibility of the credit, how can a company position itself to take advantage of legitimate opportunities in a way that minimizes the likelihood of a bad IRS audit outcome? Although Williams-Keepers LLC (WK) has been evaluating credit eligibility with clients and providing ERC planning guidance for over a year-and-a-half, much confusion still exists regarding the credit, particularly as misinformation regarding eligibility continues spread. Unfortunately, those navigating the credit have had to deal with changing rules, minimal IRS guidance, and significant delays in processing of refund claims. Since December 2020 when the Consolidated Appropriations Act (CAA) allowed Paycheck Protection Program (PPP) recipients to also participate in the Employee Retention Tax Credit (ERC) program, the ERC has been an important COVID-relief provision for many businesses. Below are the resources from our previous BOSS seminars.ĪUGUST 2022 SEMINAR Revisiting the Employee Retention Credit: Busting Myths and Maximizing Opportunities WK BOSS Seminars are offered in both Jefferson City and Columbia. The BOSS Series was designed to provide business owners with effective strategies for managing their businesses and addressing key financial challenges through a series of planned informational seminars and associated resources and materials. ![]()
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