Assistance for workers and employers affected by COVID-19-related layoffs in Iowa was announced by Governor Reynolds on March 16. Included in the guidance is information on unemployment insurance claims and available programs for employers like the Voluntary Shared Work program.
“Iowa has incredible employers accommodating the needs of Iowans during the disruption caused by COVID-19,” said Gov. Reynolds. “The state of Iowa is doing everything we can to ease the process and shorten the time it will take for Iowans to receive unemployment benefits. All of our state agencies continue to work as one team to lessen the impact COVID-19 will have on our economy and our people.”
Amid the COVID-19 pandemic, various government relief programs were passed to aid individuals and businesses during these unprecedented times. If you are a business owner, there is a chance you’ve likely heard of one or all of the relief programs aimed at helping businesses, including the Employee Retention Tax Credit (ERTC).
ERTC, first introduced through the Coronavirus Aid, Relief and Economic Security Act (CARES), was created to provide business owners with provisions to help counteract losses in revenue the company may have endured due to government restrictions and mandated shutdowns.
Eligibility and qualified wages
Since ERTC was originally passed in March 2020, there has been multiple adjustments and changes made to the tax credit eligibility rules, therefore increasing the ERTC qualification pool to more businesses.
Some of the key indicators of whether a business qualifies for ERTC to some extent includes if the business was fully or partially shutdown due to government mandated restrictions, the business either experienced a 50% or more gross receipt decline in 2020 compared to 2019, experienced a 20% or more gross receipt decline in 2021 compared to 2019, or if the business was started in 2020/21.
ERTC eligible businesses could potentially receive up to 70% of the paid qualified wages and in 2021, through the Consolidated Appropriations Act (CAA) and the American Rescue Plan Act (ARPA), eligibility rules were expanded, increasing the number of qualified wages per quarter. Additionally, for businesses with 500 or less full-time employees all wages now qualify for ERTC. However, for businesses with over 500 employees, qualified wages include only wages for non-rendering services. These eligible wages also include employees sent home due to government restrictions or decline in business activity but are still received benefits from the employer (such as insurance).
For wages already covered by the Paycheck Protection Program (PPP), the ERTC cannot be used. Additionally, wages covered under the Families First Coronavirus Relief Act (FFCRA) do not qualify for ERTC. However, don’t let this discourage you from claiming these available programs.
To apply for the ERTC, eligible employers can report their qualified wages for the quarter typically on the Form 941. It is recommended to have this done by a tax professional, so you don’t miss any important steps and lose out on the benefits.
For more information regarding ERTC and other government relief programs, contact Honkamp director of sales, Ben Yunt at email@example.com or 888-556-0123.
This article was previously published in Franchising USA.
DUBUQUE, Iowa (September 30) — Honkamp Krueger & Co., P.C., a Top 10 Midwest CPA and business advisory group, has changed its name to Honkamp, P.C.
Greg Burbach, Honkamp’s CEO, states, “We are very excited about our new look. In celebration of the firm’s 75-year anniversary and to stay modern and relevant with industry and marketplace trends, we decided to revitalize the appearance and feel of our brand. Although we have a new name and logo, the way we do business remains the same.”
The firm was founded in 1947 by John and Peg Law when they established an affiliate office of Mail Me Monday. After 12 years, John Law became entirely independent, changing the name of the business to the John W. Law Company. In 1985, the partners at John W. Law Company decided to identify the organization as a certified public accounting firm, revising the name to Honkamp Krueger & Co., P.C. to reflect the names of shareholders Arnie Honkamp and Al Krueger.
Honkamp, P.C. is a Top 10 Midwest CPA and business advisory group (Accounting Today, 2022). Serving client organizations from coast-to-coast, our clients range from privately-held organizations to individuals and nonprofits. We specialize in various industries including construction and real estate, dental practices, franchises, health care, and manufacturing and distribution. Honkamp is headquartered in Dubuque, Iowa, with additional locations in Waukee, Hiawatha and Davenport, Iowa, Geneseo, Ill., and Madison, Platteville and Oshkosh, Wis.