A Small Business CPA Can Save You Money On Your Taxes - Palma Financial

Don’t miss out on the Employee Retention Credit! A small business CPA can ensure that you are able to cash in.

The employee retention credit (ERC) is an excellent way for small businesses to save on payroll and taxes. It’s hard to imagine that they wouldn’t qualify for some or all of the credits!

And remember, this is a tax credit—one of the very best things that tax law has to offer.

And you can be looking at big bucks. The possible ERC is $5,000 per employee for 2020 and up to $28k by 2021. That’s a total of around 33 grand – not bad!

But here’s the deal – unless you have a qualified small business CPA, you might miss out. We are here to make sure you get all the money you can.

For 2020, you have two ways to qualify:

1- You had a gross receipts drop during a calendar quarter of more than 50 percent compared to the same calendar quarter of 2019. The 50 percent test is the trigger for the ERC, and you automatically qualify in the next 2020 quarter.

2- You suffered from a federal, state, or local government order that fully or partially suspended your operations.

For 2021, you have three ways to qualify:

1- You suffered a federal, state, or local government order that fully or partially suspended your operations (under this rule, you qualify for the ERC on the days you suffered the total or partial suspension, even if you did not lose any money).

2- Your gross receipts for a 2021 calendar quarter are less than 80 percent of gross receipts from the same quarter in the calendar year 2019.

3- As an alternative to number 2 above, using the preceding quarter to your 2021 calendar quarter, your gross receipts are less than the comparable quarter in 2019.

You can see by the rules that the government wants to help your small business. Work with a small business CPA (like us!) to ensure that you get the money you deserve.

One final note. You may not double-dip. Wages you use for the ERC may not be used for the P.P.P., family leave credit, or similar COVID-19 programs.

Let us take care of your tax and accounting needs, so you can concentrate on what you do best running your business!! Let’s discuss more in a strategy session. Book Your Free Assessment Here.