In this issue of the Monday Morning Messenger, TPGA revisits the employee retention tax credit. Changes made in 2021 make it easier for an employer to qualify for the IRS tax credit. Read more about the changes in our first story of the morning.
While we are the subject of federal relief, TPGA gives an update on the status of the Paycheck Protection Program (PPP). Read our second story of the morning for more about the PPP program.
There are only 15 days left in the Texas Legislative Session. Several bills are close to making the finish line, we report on one that will impact all members that have employees in the Lone Star State. Read our legislative update below for more information on this Texas legislation.
In our last story of the morning, read about a federal proposal that could severely limit alternative fuel highway signage across the nation.
Check out our Quick Links section for some important reminders and links. In this edition, again find a link to more information on the very important Sales of Propane survey from PERC and Frost. As always, we give you fast access to our TPGA store where you can find everything from consumer education materials to propane compliance items. Additionally, find a link to the TPGA scholarship information, the deadline is right around the corner, there are only 2 weeks left to apply. Lastly, find quick access to our annual Convention pages where you can book your hotel and register for the conference and expo.
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In this issue
- In Brief
- Employer Retention Tax Credit 2021 Changes
- PPP Update
- Texas Legislative Update
- FHWA Proposal
- Quick Links
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Calendar
May 17-28, 2021
May 31, 2021
TPGA & RRC
Closed for Memorial Day
May 31, 2021
May 31, 2021
May 31, 2021
Sine Die Texas Legislature
May 31, 2021
June 1, 2021
June 1, 2021
June 3 & 6-8, 2021
June 15, 2021
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Employer Retention Tax Credit
2021 Changes
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The American Rescue Plan Act of 2021, enacted March 11, 2021, extended the Employee Retention Tax Credit through the end of 2021. So, the tax credit is available for all of 2021 (January 1, 2021 – December 31, 2021).
In 2020, the tax credit was limited to businesses with 100 or fewer employees; for 2021, it has been expanded to businesses with 500 employees or less.
To have been eligible in 2020 to the claim tax credit, a business would have had a 50% reduction in gross receipts compared to 2019, but in 2021, a business only needs a 20% reduction in gross receipts a quarter compared to the same quarter in 2019 to qualify to claim the tax credit.
The good thing is one does not have to count stimulus funds received like PPP, EIDL grants when calculating gross receipts so a company can more accurately depict revenue shortfalls.
How much is the credit?
2020 – up to $5,000 per employee for the year
2021 – up to $28,000 per employee for the year
(Limited to up $7,000 per quarter)
How is it calculated for 2021?
70% of the first $10,000 in qualified wages per employee in a quarter thus up to $7,000 per quarter can be taken. Qualified wages include all forms of wages that are subject to FICA tax. Unfortunately, wages paid to related individuals (relatives) who are employees do not qualify for the credits.
How do I claim the credit?
Quarterly Form 941 form (as a refundable tax credit)
Retroactively – Form 941-X, Adjusted Employer's Quarterly Federal Tax Return
Advance – Form 7200
For further information, verify eligibility or to claim credit, talk with a CPA, tax professional, or accountant or visit www.irs.gov.
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Paycheck Protection Program Funds Exhausted |
The Paycheck Protection Program application deadline was supposed to be May 31st; however, the Small Business Administration (SBA) has stopped accepting applications from traditional banks. Funds from the core PPP program were exhausted before the approaching deadline at the end of this month.
The Small Business Administration (SBA) stated they will award outstanding loan applications from traditional banks received as of May 4, 2021.
However, the SBA has reserved $8 billion for community development financial institutions (CDFIs) that help underserved lower-income communities and will continue to accept PPP applications from CDFI's for businesses in those communities.
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TAX TIP: On a somewhat related note, as a REMINDER, as you do your taxes, do not forget expenses covered by PPP loans are now tax-deductible. |
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SB 14 Almost to Finish Line |
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Senate Bill (SB) 14, the Business Freedom & Uniformity Act by Senator Creighton of Conroe, TX was introduced earlier this legislative session to protect businesses from overburdensome local regulations.
The core of the bill states: A municipality or county may not adopt or enforce an ordinance, order, rule, regulation, or policy requiring any terms of
employment that exceed or conflict with federal or state law relating to any form of employment leave, hiring practices, employment benefits, scheduling practices, or other terms of employment.
It will leave it up to employers as well as state and federal regulations to dictate paid leave and other employer benefits and policies.
Last week, SB 14 was voted favorably from the House State Affairs Committee. Next stop is the full House Chamber and then to Governor.
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A Proposal Limits Allowance of
Alt-Fuel Highway Signage
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A recent Federal Highway Administration (FHWA) proposal would severely limit alternative fuel road signage. The federal proposal would only allow gas stations that supply gasoline in addition to an alternative fuel to have signage. If the gas station wanted to promote the alternative fuel, it would have to be a secondary message on the same sign.
What that means is as a propane company, unless you also sell gasoline, you could not be allowed to acquire a highway sign promoting propane autogas.
The proposal negates the Congressional passage of the FAST Act, which is to create a nationwide Alternative Fuel Corridors Program and put alternative fuel signage on major thoroughfares across the country.
In response to the proposal, working with Southern Clean Cities Coalitions, the Texas Propane Gas Association sent formal comments to the Federal Highway Administration opposing the federal measure. Last week, the National Propane Gas Association also reported opposing and commenting negatively on the federal proposal to limit alternative fuel signage.
TPGA will keep members up to date on if the measure gets adopted or if FHWA responds to our opposition.
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COMPLETE THE SALES
OF PROPANE REPORT SO
TEXAS GETS ITS FAIR SHARE
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SHOP HUNDREDS OF ITEMS
AT PROPANE SERVICE CORP
GET MEMBER DISCOUNTS
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DON'T MISS THE DEADLINE
THE DEADLINE IS JUNE 1, 2021
COMPLETE AN ONLINE APPLICATION TODAY!
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JOIN US IN CORPUS FOR THE
TPGA CROSSROADS CONVENTION & EXPO
AUGUST 12-14, 2021
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