New CARES legislation NOW allows PPP recipients to capture the Employee Retention Credit.
As your bank sorts through the process for PPP forgiveness and another round of applications, be aware that there is new legislation which allows PPP recipients to also take advantage of the Employee Retention Credit (ERC).
By partnering with Synergi, you can potentially add further government liquidity to your customers relationships and add Non-Interest Income to the bank.
Bradley S. Marcus
Brad Marcus is well known in the banking arena, having spent almost 40 years in the industry. Most recently, Brad serves as Executive Vice President- Cares Act Bank Alliances at Synergi Partners. Synergi Partners is the most knowledgeable firm in their space with an executive team of veteran tax credit experts that possess more than 150 years of combined know-how. Synergi Partners is focused on providing solutions to companies to help build productivity and profitability.
Brad’s interests in tax credits spawned from his many years in economic development and volunteer work for the American Red Cross where he served as chairman of the American Red Cross- Georgia Chapter. He specializes in tax credit applications for banks and building bank alliances to assist banks in providing strategic financial solutions for their customers.
Brad recently retired from Wells Fargo/Wachovia as Executive Vice President of Commercial Banking- Georgia Division with over 30 years in banking leadership experience. He is now focused on establishing CARES Act partnerships with banks as they provide creditable solutions, including employee retention tax credits, to meet the financial needs of their customers.
Updated Stimulus Package Expands and Enhances CARES Act Incentives
On Sunday, December 27, 2020, the President signed a $900 billion COVID-19 relief package into law that includes additional relief for businesses. Specifically, the new legislation amends, expands, and enhances the CARES Act Employee Retention Credit (ERC).
The ERC was previously unavailable as an option for relief to businesses that received Paycheck Protection Program (PPP) loans through the SBA. However, the new legislation explicitly provides a retroactive amendment to March 27,2020 and clarifies these businesses are eligible to receive the ERC—just not on wages paid with PPP loan funds. Other important changes to the ERC include: (1) a prospective credit increase from 50% of up to $10,000 of qualified wages annually to 70% $10,000 of qualified wages per quarter starting January 1, 2021; and (2) public universities and hospitals are now considered eligible employers.
Synergi Partners is prepared to assist in determining eligibility, calculating, and monetizing the ERC. Synergi Partners has an experienced team which has developed a proprietary methodology, proven to be efficient and maximize your credits!
Now your PPP clients can benefit from the new legislation which could mean up to $33,000 per employee via the Employee Retention Credit.
Significant legislation enhancements made in December 2020 & March 2021. They were:
- Businesses that received PPP loans now eligible to receive ERC
- Extension of ERC for 12 months through December 31, 2021
- Enhancement to credit amount and expanded qualifiers
- Increased credit from 50% to 70% of qualified wages
- Increases limit on per-employee creditable wages from $10,000 for the year to $10,000 for ea. quarter
- New max = $33,000 per employee ($5K / 2020 + $7K per quarter in 2021)
- Increased benefits in 2021 for full wages for companies up to 500 employees
- Recovery Startup Business: business startup after 2/15/2020; Gross Receipts < $1M; $50K / quarter max
- Severely Financially Distressed Business: 90% or greater hit in gross receipts over 2019; no employee cap on full wages
Client Success Stories
Bank customer in Southeast
- Quick Serve Restaurant
- 6 locations
- 128 employees
- $1.2M ERC Credits
Bank customer in CA
- Credit Union
- 7 locations
- 65 employees
- $969K ERC Credits
Bank customer in NJ
- 5 Locations (NY & NJ)
- 260 Employees
- $3.2M ERC Credits
Synergi is prepared to guide you through this process. Reach out to us now to get started:
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