• Home
  • Services
    • Accounting Services
    • Bookkeeping
    • Payroll
    • Advisory Services
    • Cash Flow Forecast
    • Consulting for QuickBooks®
    • Training for QuickBooks®
    • Cloud Accounting
  • Products
    • QuickBooks Online
    • QuickBooks Online Advanced
    • QuickBooks Desktop
    • QuickBooks Enterprise Solutions
    • QuickBooks Point of Sale
    • QuickBooks Payments
  • Industries
    • Wholesalers and Distributors
    • Services
    • Construction
    • Real Estate
    • Non Profit
    • Manufacturing
  • Resources
    • Resources
    • Mobile Accounting
  • Blog
  • About
    • About
    • Testimonials
  • Contact
616-610-3750
info@denuylaccounting.com
March 15, 2021

Tax Changes Affecting Businesses from the American Rescue Plan Act

Marti DenUyl Tax

The American Rescue Plan Act of 2021 (ARPA) signed into law on March 11, 2021 by President Biden contains numerous tax provisions which may affect the tax situation for your business in 2020 and 2021.  We’ll provide a general recap of some of the major changes impacting businesses in this article. 

Employee Retention Credit

The Employee Retention Credit (ERC) has been extended through the end of 2021, which adds the third and fourth quarters to the mix. It also allows the credit to be claimed against the 1.45% Medicare or Hospital Insurance (HI) taxes.

The ERC can be a significant windfall for businesses that have had a drop in gross receipts or have been shuttered by a government order. 

Paycheck Protection Program

While the current March 31, 2021 application deadline for First and Second Draw PPP loans has not been extended as of this posting, the ARPA did add more funds to the program, made COBRA eligible for forgiveness, and expanded eligibility to additional entities, including additional covered nonprofit entities, newspapers, and certain nonprofits.  

The Paycheck Protection Program was designed to save jobs by providing forgivable funds to employers and self-employed individuals so they can make payroll and support their ongoing operations during the economic uncertainty of the pandemic. 

Shuttered Venue Operators

Additional monies have been allocated to this program which was initiated by the Consolidated Appropriations Act signed in December 2020. Entities that are eligible for the Shuttered Venue Operators program, which has not opened as of this writing, can now apply for Paycheck Protection Program loans. 

Paid Sick Leave

ARPA extended the sick and family leave benefits that began with the Families First Coronavirus Response Act (FFCRA) to September 30, 2021. It adds the employer’s share of Medicare and Social Security taxes on qualifying leave wages to the credit calculation and increases the per employee limit from $10,000 to $12,000.

The changes also include time for the employee to receive the COVID-19 vaccine and recover from it if needed. Self-employed sick days limit is expanded from 50 to 60. 

Restaurant Revitalization Grant

Certain restaurants, food businesses, and shops located in an airport can apply for a restaurant revitalization grant that will be offered through the Small Business Association. The grant is for $10 million, up to $5 million per location, and can be spent on expenses necessary to keep the business open. A total of $28.6 billion has been allocated.

Businesses cannot have more than 20 locations, cannot be operated by a state or local government, and cannot apply if they received or have pending applications for Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. 

Tax Changes Affecting Individuals from the American Rescue Plan Act of 2021 Tax Deadline Extended for SOME but NOT ALL Tax Returns and Payments

Related Posts

News, Tax

Shuttered Venue Operators Grant Program

Tax

Tax Deadline Extended for SOME but NOT ALL Tax Returns and Payments

Blog, News, Tax

Tax Changes Affecting Individuals from the American Rescue Plan Act of 2021

Monthly Archives

Categories

  • Accounting
  • Blog
  • Bookkeeping
  • Bookkeeping Tips
  • Business Development
  • Business Growth
  • Business Tips
  • Cloud Accounting
  • Cool Tech Tools
  • Cost-Saving Tips
  • Customer Service
  • Customer Service Tips
  • cybersecurity
  • Decision-Making Tips
  • Expense Reduction Tips
  • Finance Management
  • Gadget
  • Management Tips
  • Marketing Tips
  • Money Management
  • News
  • Payroll Tips
  • Personal Development
  • Productivity Tips
  • Profitability Tips
  • Profits
  • QuickBooks Desktop
  • QuickBooks Help
  • QuickBooks Online
  • Tax
  • Technology
  • Time Management Tips
  • Home
  • Services
  • Products
  • Industries
  • Resources
  • Blog
  • About
  • Contact

Contact Us

Accounting Services and Services for QuickBooks®

DenUyl Accounting & Software Solutions LLC

Grand Rapids, MI
United States

616-610-3750

info@denuylaccounting.com

Client Login

Client Login DenUyl Accounting & Software Solutions LLC Grand Rapids MI


Intuit, QuickBooks, and QuickBooks ProAdvisor are registered trademarks of Intuit Inc. Used with permission under the QuickBooks ProAdvisor Agreement.
Copyright DenUyl Accounting & Software Solutions LLC 2021 | Site Design by Accelerator Websites | Privacy Policy