rivkah
Level 3

@linette 

One other thing to look at is:  the wages of the owner(s) of the business  (S-Corp, partnerships, etc) do not qualify for ERC.  I beleive it is owners with 80% or more, but i will have to check my notes on that.

And because there is also the requirement that the "total or partial shut down" must be govenment mandated, business in certain states would not qualify.  Off the top of my head: florida and texas, which had no mandates.  But, looking through IRS determinations, if a supplier was shut down and that shut down impacted a company that was not shut down, that company may be consider partially shut down for ERC purposes, but there still needs to be in place a govenment mandate even if the mandate did not specially target that company.  Yep... confusing.

Also, 2020 and 2021 have slightly differing requirements and calculations, so keep an eye out for that. (hint: use different colored highlighters)  

Thankfully, in my case, I dont have to deal with PPP loans, so its much more straight forward.

Yes, my first throught about paychex was that this was a new service line, but that is not the case.  Its a marketing tool.  I think I might have gotten a little indigant about the marketing tool and  was given the option to sign up my client for payroll service, they would then do all the amendments, charge $7,000, then after the client receive their refunds, they could cancel the payroll service.  Paychex also is claiming that local accountants are preparing the amendments for their clients and charging 25-30% of the refund. I guess, to convience companies that Paychex is the better deal.

 

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