Borrowers are encouraged to consult with their lawyers, CPAs and Financial Advisors regarding PPP loan forgiveness. Although we will be monitoring and updating this as new information becomes available, please do not rely solely on this for your financial decisions. Please keep in mind that official guidance around PPP loan forgiveness is changing rapidly and that this information is based on our current understanding of the programs. It does not store any personal data.These FAQs are for informational purposes only, are general in nature, and should not be relied upon or construed as a legal opinion or legal advice. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. The cookie is used to store the user consent for the cookies in the category "Performance". This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. Contact us if you have questions about these changes or how your tax status could be affected. Your BMF Advisor can help you determine the applicability of your unique situation. The Department of Treasury and IRS have stated in this Notice that they will continue to monitor potential legislation related to the ERC that may impact this notice and ERC guidelines. An individual (other than a spouse) who has the same principal place of abode and is a member of the household.Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.Brother, sister, stepbrother, or stepsister.Under the existing guidance, wages paid to employees with the following relationships to a majority owner of a corporation or partnership are not Qualified Wages: The Notice provides additional examples and clarification on whether wages paid to majority owners, their spouses and other family members may or may not be qualified wages. The Notice clarifies the wages of majority owners and their spouses do not qualify for the ERC if either the owner or the spouse has any living relative. Whether wages paid to majority owners and their spouses may be treated as qualified wages.The timing of the qualified wages deduction disallowance and whether taxpayers that already filed an income tax return must amend that return after claiming the credit on an adjusted employment tax return, and.The treatment of tips as qualified wages and the interaction with the section 45B credit,.The definition of a full-time employee and whether that definition includes full-time equivalents,.This guidance responds to various questions that the Treasury Department and the IRS have been asked about the employee retention credit, including: Notice 2021-49 also provides guidance on several miscellaneous issues with respect to the employee retention credit for both 20. The ERC does not apply to qualified wages considered as payroll costs in connection with a shuttered-venue-operators grant, restaurant-revitalization grant, paycheck protection program or other similar programs. We’ve summarized the key items included in the notice for claiming the credit in the 3rd and 4th quarters of 2021. providing that the ERC does not apply to wages considered as payroll costs in connection with a shuttered venue grant under section 324 of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, or a restaurant revitalization grant under section 5003 of the ARP.modifying the definition of qualified wages for “severely financially distressed employers,” and.expanding the definition of eligible employer to include “recovery startup businesses,”.making the credit available to eligible employers that pay qualified wages after June 30, 2021, and before January 1, 2022,.These clarifications include, among other things: The IRS released Notice 2021-49 on August 4, which amplifies and clarifies guidance from the two previous Employee Retention Credit (ERC) Notices (see here, and here) and provides additional guidance on the American Rescue Plan (ARP) extension of the ERC for the 3rd and 4th quarters of 2021.
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