b'CODING Update ComplianceLEGAL NUTRITIONUpdateANJC NewsANJC Leadership ANJC News! NUTRITION Cares Act Employee LEGAL EASERetention Credit By Jeffrey RandolphANJC Legal Counsel EligibleQualified health plan expenses areREHAB Update Employers forANJC Scholarshipsamounts paid or incurred by an eligible the purposesemployer that are properly allocable to of the ERC areemployees qualified wages to provide employers thatand maintain a group health plan, but carry on a tradeonly to the extent that these amountsCHIRO Assistor business duringare excluded from the employees gross 2020, includingLEGAL calendar yearincome. Q&AApplying for and qualifying for the ERC Executive Directors Update tax-exemptand its interaction with the PPP is a organizations, that either: i) fully orvery complex and financially intensive2020 ANJC AWARDSpartially suspendprocess so it is highly recommended operation duringthat you consult with your accountant or any calendartax preparer to determine if the ERC is quarter in 2020a program that you qualify for and will benefit you related to any other relief due to orders fromLegislative Updateprograms you have received funding INSURANCE Update INSURANCE Update an appropriatefrom. There is no bright-line rule for all The Employee Retention Credit (ERC)governmental authority due to COVID- employers and it is a fact specific inquiry was implemented by the recent CARES19; or ii) experience a significant declinethat must be undertaken by you and yourTECHNIQUE UpdateAct passed by Congress in late 2020in gross receipts during the calendarfinancial advisors.in response to the ongoing COVID-19quarter. pandemic. The ERC is a fully refundableA significant decline in gross receiptsJeffrey Randolph, Esq. (the author of Legal tax credit for employers equal to 50% ofbegins with the first calendar quarterEase and Legal Q&A) is an independent qualified wages (including allocable quali- in 2020 in which an employers grossperson of the ANJC and his views are not authorized, sponsored, or otherwise MedicareQ&Areceipts are less than 50% of its grossapproved by the ANJC. The information fied health plan expenses) that EligibleMedicare Update provided is for general guidance on matters Employers pay their employees. Thisreceipts for the same calendar quarterof interest only and may not take intoOUR HEALTHERC applies to qualified wages paid afterin 2019. The significant decline in gross March 12, 2020, and before January 1,receipts ends with the first calendaraccount particular facts relevant to your 2021. The maximum amount of qualifiedquarter that follows the first calendarindividual situation. The application and wages with respect to each employeequarter in which the employers 2020impact of laws and health care can vary for all calendar quarters is $10,000, soquarterly gross receipts are greater thanwidely based on the specific facts involved. that the maximum credit for an eligible80% of its gross receipts for the sameGiven the changing nature of laws, rules and employer for qualified wages paid to anycalendar quarter in 2019, or with theregulations, there may be omissions or inac-curacies in information contained in these employee is $5,000. first calendar quarter of 2021. Pleasematerials. Accordingly, the information you A critical aspect of the ERC is thatnote that gross receipts varies whetherreceive is provided with the understanding previously an employer could only opt foryou chose the cash or accrual basis ofthat the author and the ANJC are not herein accounting for tax purposes.engaged in rendering legal, accounting, a Paycheck Protection Program (PPP)tax, health care or other professional advice loan OR the ERC. The law has now beenQualified wages are wages andand services nor are they providing specific amended to permit both PPP and ERCcompensation paid to some or alladvice with regard to your practice, the provided that PPP monies are not utilizedemployees after March 12, 2020, andtreatment of any specific illness, disease, to obtain the ERC. For example, if anbefore January 1, 2021. Qualified wagesdeformity or condition, or any other matter that affects trade, commerce, or legal rights employer paid an employee $10,000 ininclude the eligible employers qualifiedof others. As such, this article should not be wages obtained from the PPP programhealth plan expenses that are properlyused as a substitute for consultation with these wages cannot be used for the ERC.allocable to the wages. For employersprofessional accounting, tax, legal, health However, once the employer uses its ownwith less than 100 employees, qualifiedcare, or other competent advisers. Before funds to pay an additional $10,000 inwages are the wages paid to anymaking any decision or taking any action, you should consult an appropriately trained wages it could qualify for the ERC creditemployee during any period of economicprofessional. up to $5,000, subject to the eligibilityhardship described in (i) or (ii) above. provisions discussed below. 6 I Winter 2021 www.anjc.info'