Synergi Partners has teamed up with Avionté to help employers take advantage of economic relief incentives for businesses impacted by COVID-19. Through the Families First Coronavirus Response Act (FFCRA) and the CARES Act, employers can receive refundable Federal tax credits such as the Sick Leave Credit, Family Leave Credit, and Employee Retention Credit.
Synergi Partners has also helped thousands of businesses find hundreds of millions of dollars through Federal disaster relief programs available to businesses impacted by hurricanes, wildfires, and other natural disasters that happened in 2017-2019. Synergi can also help businesses improve their bottom line by screening and processing for employment-based incentives such as the Work Opportunity Tax Credit.
Does the business have to pay back the credit?
- No. As long as the employer meets the requirements for the credit, the employer does not have to repay the credit or the resulting refunds.
What businesses qualify for the employee retention credit?
- Any employer, regardless of size, is eligible for the credit during calendar year 2020 if the business: (1) is fully or partially suspended due to a governmental order related to COVID-19, or (2) experiences a significant decline in gross receipts (i.e., a reduction of 50 percent of gross receipts from the same quarter in 2019).
Is the credit limited to businesses affected by COVID-19?
- Yes. The credit only applies to qualified wages paid by a business whose operations have been fully or partially suspended pursuant to a governmental order related to COVID-19, or have experienced a significant decline (i.e., 50 percent) in gross receipts during the period from March 13, 2020, through December 31, 2020.
How much is the credit? How is it calculated?
- The credit is equal to 50 percent of the qualified wages paid by the employer with respect to each employee. The amount of qualified wages with respect to any employee for all calendar quarters in 2020 cannot exceed $10,000. In other words, there is a $5,000 total cap on the credit per employee for the 2020 tax year.
Does it matter if the business is a corporation? Does it apply to limited liability companies (LLCs), S corporations, partnerships, and sole proprietors?
- The credit is available to corporations as well as pass-through entities, such as LLCs, S corporations, partnerships, and sole proprietors. The credit also is available to most tax-exempt organizations. Although the credit is available to all entity types, the business must meet the eligibility requirements
Through Synergi’s partnership with Avionté, you will not only be able to quickly infuse cash flow into your business, but you will save time and resources. Contact us today to start leveraging integrated tax credit screening and processing.