In March of 2021 the American Rescue Plan Act of 2021 was signed into law to continue the efforts to help with the impacts of Covid-19. The passing of this act expanded the employee retention credit from $5,000 in 2020 to up to $28,000 for 2021 with a combined total of $33,000 for both years.
Watch as Rayanne Buchianico shares with us how to qualify for this credit, and what you need to do to apply for this credit with the IRS.
Harry Brelsford 0:06
A Nation Nation around the horn we're back with Rayanne. Before we get to your main topic, quick question, I got my hand slapped by the banker the other day for the first round of the PPP funds, there's a deadline coming up. So Jenny and I have made an appointment, and we're going to complete the paperwork. And we've had that talk. We've had that talk in prior podcast with you just got to do it. What is the story of the deadline? When is it it's pretty important not to miss that deadlines,
Rayanne Buchianico 0:36
it is pretty important not to miss that deadline. You know, because if you have any hope of getting that PPP loan forgiven, you've got to get it into the bank. And I and I think that the deadline is sometime in the fall, and I'm not sure the exact dates either September 30, or October 31st, somewhere in that range. But no matter what Harry listened to your banker, don't wait, do it now. Because if you put it off now before either tomorrow is going to be August 30. And then the day after that is going to be Thanksgiving. So you know, just get the paperwork done. You know, and and, besides, you want to make sure that your payroll service can actually, you know, still produce those reports. And the longer you wait, the more likely the payroll service is going to be the yank those reports from your availability. So just get it done. It really doesn't take that long. You'll see when you get in there, you can be like, what was I procrastinating for?
Harry Brelsford 1:36
I have I have blind spots. So think of those Jennys right there by my side to work with me and this kind of stuff for Jenny. Yeah, absolutely. Well, we're talking ARPA. So main topic, what is ARPA What's going on?
Rayanne Buchianico 1:51
Okay, so back in the cares act in 2020, there was, there was something created called the employee retention credit. And so many, so few people qualified for it, that it didn't make huge headlines, everybody was all about the EDL and the and the PPP loans. So the employee retention credits didn't get a whole lot of press. But the ARPA Act, which was the American rescue plan, act that was passed in March of 21, just this past March, what that did was that expanded the employee retention credit, now listen to this, Harry, because this is really important. There in 2020, you could have gotten a maximum of $5,000 credit per employee for the whole year. But but in 2001, what they did was they expanded it. At first, it was expanded through the end of June of 2001. But now, ARPA, expanded it all the way through the end of December of 21. And so what you can do is, so you have to have a decline in grocery seats for from one year over the next or one quarter over the next. So you actually have alternate quarters that you can use. So whether it's whether it's one year over the next year that we're one quarter over the previous, there's got to be a reduction in your wages are in I'm sorry, in your gross revenue, then your wages start to qualify. And so now you can qualify for up to 10 $10,000 of wages, 70% of $10,000 of wages per employee per quarter. So that's $7,000 per employee per quarter direct cash into your bank account. And so that means that you can get up to $28,000 per employee for the year, the entire year of 2021. And if you will also qualified in 2020, and could maximize the $5,000. Now we're talking about an extra $5,000. So if you've heard on the news, you know, hey, this employee retention credit can get you up to $33,000. That's what they're talking about 28 for 21 and $5000 for 2020. And so what do you do? What do you need to do in order to claim this credit, so you can get the you can get the credit in advance by filing form 7200 you can claim the credit on your 941. And however, let me tell you what I'm running into more than anything else, is that people don't even know that they're, that their revenue dropped far enough to claim that credit until long after that quarters closed. So we're finding ourselves amending forms 941 to get those credits and the IRS is paying. So go to your payroll service and if they are not helpful. If they're not helpful, then go to your accountant. And ask your accountant to help you, you know, manually calculate these credits and get that money back. Because whatever you're going to pay, your accountant is not going to come anywhere close to the amount of cash you're going to get in return.
Harry Brelsford 5:16
So I like that, you know, you always come prepared with really good stuff. Where can people learn more of your about you? Shout out to you, where can they find you?
Rayanne Buchianico 5:27
Oh, thank you. So you can find me at ABCsolutionsFL. com. So it's ABC solutionsFL, like florida.com and go to my resources page, because there's going to be, you're going to find a lot of useful information in the resources page and one of them is going to be all about this credit. So you step over there, go to the services or and then the resources page and that's where you'll find us.
Harry Brelsford 5:54
Alrighty. And in our rehearsal, you were talking about? You're on the docket for some events ASCII group. Is that an ongoing commitment with their tour? Are you a speaker,
Rayanne Buchianico 6:06
not this year No, I was a speaker a couple of years ago, and I was doing the whole SP circuit. This week. I'm heading up to to ASCII. And I'm just a regular attendee, you are okay. Yep. Taking advantage of the opportunity to, you know, it's my first foray back out there in the world. And we had to say, I am looking forward to seeing some, you know, some old friends, you know, that are members and also the vendors. I really built some great relationships with some of the vendors when I was on the speaking circuit.
Harry Brelsford 6:41
Yeah, yeah, absolutely. All right. We'll talk to you next time. Thank you.
Rayanne Buchianico 6:45
Thanks, Harry. Bye.