CLA Offers On-Demand Webinar Focusing on Employer Tax Credits
Members seeking to learn more about the federal Work Opportunity Tax Credit (WOTC) or wishing to review the dynamics of the Employee Retention Credit (ERC) and related Internal Revenue Service (IRS) audits may want to view a recent webinar presented by CliftonLarsonAllen (CLA). The presentation, Navigating Credits & Incentives: ERC, WOTC, and More, is available on demand here. ERC insights included the fact that in terms of gross receipts, a prior quarter’s qualification automatically qualifies the immediate next quarter (such as: Q4 of 2020 saw a more than 20 percent loss in gross receipts; therefore, Q1 of 2021 is qualified). ERC applicants were reminded that employers cannot ‘double dip’ and use the same wages claimed for the Paycheck Protection Program (PPP) to also qualify for ERC and that not-for-profits with grant-funded payrolls are excluded from ERC eligibility for those specific wages. The discussion also included a description of how the ERC’s qualifying standards changed between Fiscal Year (FY) 2020 and FY 2021 along with considerations on qualifying for a government-ordered shutdown under the supply chain disruption criteria. Information and resources on the ERC are also available on the LeadingAge National website.
Members may recall that the IRS established a Voluntary Disclosure Program (VDP) for employers who filed ERC applications in good faith which were subsequently determined to be of questionable veracity. Applications for that program are due by March 22nd. The webinar emphasized that if an employer feels that an ERC claim was submitted and funds received in error, participating in the VDP would yield a better financial outcome than the result of an audit. More information on the VDP is available here.
The webinar also covered the WOTC, a program designed to incentivize employers to hire employees who traditionally and statistically have greater difficulty finding and retaining work. Through the program, an employer can claim up to a $9,600 tax credit per new hire for hiring from these identified groups. However, it appears that not-for-profits may only qualify for the program by hiring those in the qualified veterans group.
The webinar can be viewed here, while the slides can be downloaded here.
Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841