The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 has continued some of the existing help for employers through the CARES Act into 2021, but with some notable changes to each program.
FFCRA pay has been extended through March 31, 2021. Everything remains unchanged except for one minor rule: It is no longer mandatory for employers to offer it. Employee limits remain the same, with 2 weeks (up to 80 hours) for sick time and an additional 10 weeks (up to 400 hours) for the extended leave. The time does carry over from 2020, and it does not reset for the new year.
Another round of PPP loans are now being offered to employers. Most of the rules surrounding the loans remain unchanged, except this time loans will also be extended to employers with 500 or fewer employees. You may apply for a second PPP loan if the funds from the first loan have been exhausted. The rules regarding percentages, the time frame, and the 1% interest rate for loans not forgiven remain unchanged.
The employee retention credit has undergone significant changes that will allow more employers to take advantage of this credit.
For example, qualified employers that employ 500 employees or fewer in the first quarter of 2021, regardless of how many are physically working, can use the credit. To qualify, you must have a business whose operations have been partially or fully suspended due to a COVID-19 lockdown order or you have a 20% or greater loss in gross receipts as compared to the same quarter in 2019.
Here’s another change: In 2020, employers could not leverage the employee retention credit if they received a PPP loan. In 2021’s version, you may now use both (but you cannot take the credit on payrolls you are using PPP loan money to fund). The credit has also been extended to 70% on $10,000 gross wages per employee, or $7,000.00 per employee for quarters 1 and 2 of 2021. If you received the full credit for any employee in 2020, you can start over again for that same employee in 2021. You may also retroactively apply for the credit for any time after March 12, 2020. The employee retention credit will end on June 30, 2021.
A new year brings with it a fresh start that can even include an easier transition to a new payroll company! Your decision to choose our payroll services will go smoothly, as our experts are available 24/7 to help you get started! As you switch to PSS, there are some details that you can have lined up ahead for a successful, easy transition. Here are three important ones:
Payroll taxes are based on when your employees were paid, not when they worked. That means that if they got paid January 1 (or after) for work they did in the prior December (or before), those wages are reflected in the new year’s books for tax purposes. That being said, take a look at your last pay date of the year, and if it falls in 2021 for whatever reason, make sure that is taken care of with your new payroll company.
When making the transition to a new provider, make sure that, prior to closing the account, you extract important data, such as employee information, payroll reports, and annual tax forms, to keep your records. A lot of times, after an account is closed, it can be difficult to go back and retrieve this information.
When switching payroll companies, you will need important information to gain access to all your payroll tax accounts to ensure a smooth transition. You are going to need your EIN, state employer identification number as well as other payroll tax account numbers, legal business name, and bank account information.
All of this may seem overwhelming, but you can depend on our team of experts at Payroll Service Solutions to help guarantee a smooth transition throughout the longevity of your business. Call us today to answer any questions and get started!
Take some time today to tell your friends and business associates about Payroll Service Solutions. If their company successfully becomes a new customer, our team will credit your next payment $50 or gift you personally a $50 Amazon gift card (your choice).
This program is unlimited—you are eligible to be rewarded for each referral that becomes a new customer! Click here to get started
Here’s How to Get Your Referral Reward
1. Tell your friends and associates about the company and the services we offer.
2. If they express interest and want to learn more, contact Nicole Christmann at Nicolec@payrollservicesolutions.com or 215-624-0922 and provide their contact information, so she can answer any of their questions and get them signed up.
3. When your referral successfully becomes a new customer, our team will apply your $50 credit or send you a $50 Amazon gift card.
We take pride in consistently meeting—and frequently exceeding—our clients’ expectations. But don’t just take our word for it. Read on to hear from a few of our current “partners.”
“Excellent company to work with. Had a tax issue and spoke to a representative [at PSS]—and the issue was immediately resolved. Been dealing with them for years, and am 100 percent satisfied with the quality of service and staff. Highly recommend for all your payroll needs.”
metro filing services
“This is an amazing company to work with. Our small business has been using Payroll Service Solutions for years, and their attention to detail is top notch. They are eager to help whenever I’ve called, and they are so much more personal than the large chain companies.”
“We are so happy we changed to Payroll Service Solutions, no more headaches or problems”
Cindy, Philadelphia, PA