Level 4

Question

ppp and erc

Forum|Forum|4 years ago
May 4, 2022
5 replies
35 views

I last week I had a meeting with a Paychex Rep, they are offering a filing of PPP and ERC to employer with payroll who did not take credits on 941 forms or get the PPP loan, claiming rather large refunds. Also, saying that the business did not have to experience a reduction in overall revenues, but only a major change in the way buisness was conducted. This I did not know.

During this meeting we talked about a specific cleint of mine that has been doing their own payroll for decades, with no intention of signing on to a payroll service. Of course, I was excited about this since I know that this client has been struggling to maintain revenue stream and any additional influx of cash would be most helpful. Based on the conversation (rep with his manager), it appeared as though Paychex was adding another product/service line.

I filled out the initial questionnair on behald of my client, was told that they qualify. I then asked about fees and time line......

Today, Paychex says ... only for Paychex customers. I am frustrated, bordering on angry.

So..... does any one know about this? Applying for tax credits because of the change in business proceedures? Can someone point me in the right direction to apply for this on behalf of my client? Has anyone applied for this? What is the proceedure? And a whole bunch more questions I dont know to ask

Thank you in advance for your kind attention to my questions

Business

This topic has been closed for replies.

sjrcpa

Level 15

irs.gov has a lot of info the ERC.

It's a bit narrower than a "major change in the way buisness was conducted" but your client could qualify.

And the rules are different for 2020 and 2021.

The more I know the more I don’t know.

R

rivkahAuthor

Level 4

I looked through irs.gov for ERC.... maybe I am missing something, but can you be more specific?

sjrcpa

Level 15

Use Employee Retention Credit as your search term.

The more I know the more I don’t know.

dkh

Level 15

Have you read through this ? https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

dkh

Level 15

Maybe something in here will help https://www.adp.com/spark/articles/2021/01/irs-guidance-on-how-to-claim-the-employee-retention-credit-for-2020.aspx

T

TaxGuyBill

Level 15

@rivkah wrote:

to employer with payroll who did not take credits on 941 forms

That is done on amended 941s. So the largest source of information is to read the Instructions for 941. Have you done that?

https://www.irs.gov/pub/irs-prior/i941--2020.pdf

https://www.irs.gov/pub/irs-prior/i941--2021.pdf

https://www.irs.gov/pub/irs-prior/i941x--2020.pdf

https://www.irs.gov/pub/irs-prior/i941x--2021.pdf

(On the links for 2020, you need to look on the left side for the Instructions for various quarters. If it does not show up, then try a different internet browser or download the file and open it with Adobe (NOT your internet browser).

R

rivkahAuthor

Level 4

@TaxGuyBill , @abctax55 , @dkh

Thank you so very much for all your efforts on my behalf. I have read through those items which you had linked, in fact I must have printed out 1/2 ream of paper to re-read and highlight. There is a lot of information out there... and the rules for 2020 are different from 2021, which makes it all more mind boggling, keeping it all straight.

I admit when preparing income tax returns (1040, 1120, etc), I will put my toe on the legal line, but never cross it... occassionally, have leaned way over it. The nature of tax does lead to "interpetation" and, of course, searching for loopholes and gaps.

But this could lead to jeopardy if I get it wrong. And I am having a hard time trying to determine if this small vet client even qualifies --- contradictory information about whether or not an "essential business" qualifies at all (2020 vs. 2021). What is the meaning of "fully or partically shut down" under "govenment mandate" ? Depending upon what you read or to whom you speak with... "partical shut down" might mean that the Vet Client, which still operated, but who completely changed their method of operation, qualify. Example I was given: a restaurant who no longer had indoor seating, (only take-out) qualifies, even though their revenues increased. But, a restaurant is/was not an essential business... the Vet clinic is/was.

I have already stacked on my desk all the information and forms to do all the necessary amendments. Doing the amendments is just boring and tedious. It's the underlying assumption I am having the problem with. Does the Vet clinic even qualify?

Any opinions?

T

TaxGuyBill

Level 15

As was mentioned above, the rules changed several times so you need to look at each quarter's rules.

If you don't usually do payroll, it really is in the best interests of your client if you refer out this to somebody that is already knowledgeable about the rules.

abctax55

Level 15

These guys have many 'free' webinars on ERC (many of which I took two years ago...)

https://www.cpaacademy.org/search_webinar

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