Virtual Event Series 

Carolinas Chapter Summinar

Brad Steele / Private Club Consultants

Thursday, September 3 at 2:00 pm

With Congress' previous responses to the pandemic in full force and additional executive orders being implemented shortly, club leaders have been overwhelmed with new requirements and benefits coming from Washington. Unfortunately, many of these legislative and executive initiatives (like the FFCRA, PPP and ERTC) have been enacted with little or no guidance – causing more questions than answers.  

This interactive webinar will provide clarity regarding what it all means and what you must do to ensure your club is in compliance with the law. Most importantly, this session will help you get the most from what the government has to offer – allowing you to better assist your employees and members while protecting the financial health of your club.  

Brad will explain the ERTC (Employee Retention Tax Credit) and how it affects private, tax-exempt clubs among other legislative issues.

Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_CrIedGp3QQq-eB2fwq48ZQ

After registering, you will receive a confirmation email containing information about joining the webinar.

The Employee Retention Tax Credit 

In the meantime, here's a description of the ERTC from the IRS website:

The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. Also, if the employer's employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.

For each employee, wages (including certain health plan costs) up to $10,000 can be counted to determine the amount of the 50% credit. Because this credit can apply to wages already paid after March 12, 2020, many struggling employers can get access to this credit by reducing upcoming deposits or requesting an advance credit on Form 7200, Advance of Employer Credits Due To COVID-19.

Employers, including tax-exempt organizations, are eligible for the credit if they operate a trade or business during calendar year 2020 and experience either:

1. the full or partial suspension of the operation of their trade or business during any calendar quarter because of governmental orders limiting commerce, travel, or group meetings due to COVID-19, or
2. a significant decline in gross receipts. 

A significant decline in gross receipts begins:

• on the first day of the first calendar quarter of 2020
• for which an employer's gross receipts are less than 50% of its gross receipts
• for the same calendar quarter in 2019.

The significant decline in gross receipts ends:

• on the first day of the first calendar quarter following the calendar quarter
• in which gross receipts are more than of 80% of its gross receipts
• for the same calendar quarter in 2019.

The credit applies to qualified wages (including certain health plan expenses) paid during this period or any calendar quarter in which operations were suspended.

Qualified wages

The definition of qualified wages depends on how many employees an eligible employer has.

If an employer averaged more than 100 full-time employees during 2019, qualified wages are generally those wages, including certain health care costs, (up to $10,000 per employee) paid to employees that are not providing services because operations were suspended or due to the decline in gross receipts. These employers can only count wages up to the amount that the employee would have been paid for working an equivalent duration during the 30 days immediately preceding the period of economic hardship.

If an employer averaged 100 or fewer full-time employees during 2019, qualified wages are those wages, including health care costs, (up to $10,000 per employee) paid to any employee during the period operations were suspended or the period of the decline in gross receipts, regardless of whether or not its employees are providing services.

CLICK HERE for more information on the IRS website.

CAROLINAS  STRONG !