Our uptown lease is up at the end of June, so this month we are busy moving offices to the new space Sarah has purchased in downtown Port Townsend, behind Alchemy Bistro. It's a shift of only a few blocks, but a huge undertaking.
We appreciate your patience as we pause non-essential client services and reorient. It is possible that our phone service will be briefly disrupted, so email is (as always!) going to be the best way to reach our team.
Our new mailing address is: 842 Washington Street, #104
Port Townsend, WA 98368
We'll post on our Facebook page when we're fully operational in the new space. We look forward to welcoming you to our new offices with an open house later in the year!
We asked The Business Guides team: What about the new office excites you most?
SARAH: "Improved technology and efficiency of space." LUCIANNE: "Having my own office." CHRISTINE: "The novelty of being downtown and in the thick of things." SHELLY: "Work break work-outs on the Haller Fountain steps." MEGAN: "Getting to paint the walls and decorate my office space." KIM: "Meeting our new neighbors!"
We love your pictures!
THANK YOU to all of you who brightened our tax season by uploading photos of your pets or family along with your tax data. We suggested you do this "for fun" when letting us know you were DONE. Each snapshot was oohed and aahed over by our team.
Says Sarah: "It just makes me smile when I open tax data and there's a picture at the end!"
Here are some of the adorable pet photos we received. You can see why they made our day!
Do you qualify for the ERC?
There's currently a lot of buzz about the Employee Retention Credit (ERC or ERTC, with "T" standing for "Tax"), so here are some facts about this payroll tax refund that can be retroactively claimed for parts of 2020 and 2021.
Legislation passed at the end of last year made the credit more valuable for the three eligible quarters of 2021 (Q1, Q2, Q3), and was intended to help employers still struggling in Year 2 of the pandemic with significant drops in revenues.
Who is the ERC best suited for?
Calculating the credit can be complicated, as it interfaces with other COVID relief programs. The credit is more valuable for businesses with many low-wage employees than for those with a few high-wage employees. It is also helpful if forgiven PPP funds were not used fully for wages, as there's no "double dipping" allowed. (Wages must not have been used for Paid Family Medical Leave credit or SVOG or RFF grant funds, either.)
How would the ERC affect my 2020 or 2021 tax return?
The credit can be claimed retroactively for 2020, 2021, or both. However, the corresponding year's tax return(s) must be amended to reflect the amount of the credit. (This would include the business return and all the owners' personal returns.)
While the ERC is not considered taxable income, you may not deduct the amount of wages upon which you claim the credit. This adjustment occurs in the year the wages were paid – so, a 2021 credit must be reflected in your books for the 2021 tax return, even though the ERC refund is received in a later year.
What's the rush?
If your 2021 tax returns have not yet been filed, you may wish to calculate and apply for the 2021 credit before filing by the extension deadlines and save yourself the expense of amending. You can amend your 941 forms retroactively for up to three years to claim the ERC.
What employers are eligible?
Businesses that paid wages and either had operations partially or fully suspended under government orders due to COVID-19 or experienced a decline in gross receipts as compared to the same quarter of 2019.
What wages are eligible?
Those paid between March 13, 2020, through Sept. 30, 2021. Note: The credit can only be taken on wages that were not paid with funds forgiven or expected to be forgiven under the Paycheck Protection Program (PPP). Owner's wages are typically not eligible for the ERC.
What is the amount of the credit?
In 2020, it's up to $5,000 per employee. In 2021, it's up to $7,000 per employee per quarter.
When can ERC refunds be expected?
According to the latest information from the IRS, amended Forms 941 that have already been filed should expect to see a refund somewhere between 6-10 months from the filing date.
Where can I get help applying for the credit?
This is a challenging credit to navigate even with the help of an experienced bookkeeper, so seeking outside assistance may be prudent. We at The Business Guides have been talking to clients who are clearly eligible and offering our ERC services at $200/hr (minimum $1,000 fee). Our team needs access to your filed 941s, your payroll reports with monthly breakdowns of each employee's wages, your QuickBooks file, and your PPP forgiveness application(s). If your 2021 gross receipts were down by at least 20% in one or more of the first 3 quarters compared to 2019, email Kim to get on our ERC list.
Olympia Tax Service has assisted at least one of our clients with the ERC, and she gave their service a thumbs up. Their fee is $500 for an initial consult and 10% of the credit received (minimum $3,000 fee).
Some ERC specialist firms are taking more aggressive approaches toward eligibility, and will consider applying for the credit even without a reduction in gross receipts. There are a lot of nuances to the ERC, and each business's situation must be evaluated on its own.
Our newest tax preparer, Megan Eisenman, was awarded her Bachelor of Science degree in Accounting from Western Governors University last month. Congratulations, Megan!
She started the distance program in January of 2020 and persevered through the pandemic, while also managing a household with three school-age children.
"I found myself becoming more and more interested in finances and accounting after starting a trucking business with my husband John and working in a credit union," says Megan. "There is always a need for financial experts." We're glad to have her on our team.
Contract renewals are coming!
Our tax service year starts July 1st, and so this month we are also busy preparing to re-quote the fixed price agreements for our bundled services.
Enjoy a streamlined renewal experience for Tax Year 2022! New this year:
We are accepting credit card payments via CPA Charge. (You asked; we heard you!)
We are using Quotient quoting software, so watch your inbox for an email from Shelly via Quotient.
If you are interested in a considering fixed price agreement for your business that is payable in full or in monthly installments and includes your tax returns, a Tax Planning Review, our IRS correspondence service and audit protection, and priority customer service, please email Shelly.
"Something New in 2022" Snapshot
The Business Guides is excited to be moving downtown, with the purchase of a new office space on Washington Street. Here, Client Liaison Kim Collier poses behind the spacious front counter where she will greet you.
These e-newsletters contain important and timely information for our clients and colleagues that is not replicated in other communications. We appreciate your attention to them!
There's currently a lot of buzz about the Employee Retention Credit (ERC or ERTC, with "T" standing for "Tax"), so here are some facts about this payroll tax refund that can be retroactively claimed for parts of 2020 and 2021.
