Topic: Employee Retention Tax Credit

Speaker: Reuven Rubinson, longtime FENG member, owner of his own public accounting firm, provider of interim CFO services
 

Presentation:
The Employee Retention Tax Credit (the ERTC, or sometimes just the ERC) is aa payroll tax credit introduced by the federal government to provide help to companies hurt in specific ways by the pandemic and, looked at more broadly, to provide a boost to the overall economy which was in danger of going into the tank due to the multiple shocks brought on by Covid-19.  It is intended to provide financial relief to employers who were adversely affected by the pandemic, either based on a significant decline in revenue or due to government orders restricting business activity. The tax credits are based on the amount of qualified wages that were paid during the period March 12, 2020, through September 30, 2021.

For a number of reasons, many eligible employers have never claimed the ERC, and those employers are potentially leaving a lot of money on the table. 

One impediment to claiming the ERC has been confusion regarding the interaction between the ERC and the Paycheck Protection Program (PPP). At the outset of the ERC program, employers were not allowed to claim both the PPP loan and the ERC. This rule was later reversed, allowing employers to claim credits on qualified wages to the extent they were not included in PPP loan forgiveness calculations. 

If an employer is eligible for  the ERC but did not apply for it during the initial period, they can apply for it retroactively.  If they do it right, it is "found money" to their bottom line.

At the same time, just as with any governmental benefit program with wide application, there have been companies claiming ERC credits to which they were not entitled.  And as always happens in such cases, that resulted in the IRS tightening up some of their procedures to prevent the improper payout of undeserved benefits.

Employers retroactively filing for the ERC should be aware of the risks involved and the kinds of issues getting federal scrutiny.  With a little knowledge and care, employers can ensure that they fully develop the facts and calculations needed for a rigorous submission to the IRS.

In this presentation, Reuven Rubinson will give us an overview of the program, as well a the basic logic and rules for benefiting from it, and will walk us through a number of examples.  He will be fully open to respond to any and all questions that arise when people hear and see the specifics -- i.e., the questions that will arise when dealing with ERC issues in the real world.

By the end of the discussion we should all have a much better understanding of:

- What is the Employee Retention Credit and who can get it?

- What kind of pandemic-related business disruptions qualify a company for the credit?

 - Is the ERC only for well-established companies, or can startups also be eligible?

- Is a drop in company income a requirement for filing for the ERC and, if so, how much of a drop?

 - If a company had to suspend some operations, or pivot to ensure company survival, can that be a factor in establishing eligibility?

-  Can the IRS apply penalties to a company improperly requesting ERC funding?

 - What key pitfalls should a company avoid in preparing its submission?

 - What key principles should guide a company in navigating its way through the ERC requirements?
 

Reuven has helped a number of companies work their way through successful ERC filings, and has taught many others how to do it as well.  You will leave this meeting with a deeper and more relaxed understanding of what's required for guiding your own or client companies through the ERC process.

Speaker's bio:
Reuven Rubinson is an MBA/CPA, hands-on financial executive, with a wealth of skills in many areas. He has worked within companies as CFO or Controller, and has consulted to companies from the outside.  He has consistently enabled his companies and his clients to increase profitability and operational efficiency through systems design, development and implementation and technology upgrading and training.

His experience has included implementing and maintaining accounting, IT and internal control systems, including Sarbanes-Oxley (SOx) compliance; assisting with acquisitions, reorganizations, reverse-mergers and restructuring of startups and joint ventures; ensuring companies meet their compliance responsibilities, including SEC, SOx and other governmental reporting requirements; and documenting, streamlining and managing departmental operations for maximum effectiveness.

In his CPA practice, Reuven has provided ongoing part-time and interim CFO and controller services; provided accounting, business and computer consulting services; developed financial models and business plans; prepared tax returns for businesses, nonprofits and individuals; developed, implemented and monitored internal control systems; and assisting with mergers and acquisitions.

He served as the Executive Vice President of a publicly traded pharmaceutical company; assisted a local company in becoming public via a reverse merger, subsequently serving as their CFO for three years, later providing accounting and tax services for an additional two years. He has taught accounting, federal income taxes, auditing and business plan preparation classes at Fairleigh Dickenson University in New Jersey, DeVry University and Keller Graduate School of Management, and is currently an adjunct professor teaching accounting and federal taxation at Southwestern Community College.

Reuven got his BA from Colorado College and his MBA from New York University.  He has been licensed since 1979 as a CPA, and worked the initial years of his career at several CPA firms in the New York City area, before achieving partner status and then moving out to California to establish his own CPA practice.

In his spare time, Reuven has served on the board and acts as the treasurer for numerous nonprofit organizations, and volunteers as an usher Captain at the La Jolla Playhouse, Old Globe, Cygnet and North Coast Rep Theatres, and volunteers at numerous other theaters and venues in the San Diego area. 

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CPE credit:  for those members maintaining their professional certifications - we offer the documentation for Continuing Professional Education (CPE) credits for our speaker presentations. 

1.0 hour will be given to all participants requesting it, and who are present for the presentation

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To Attend:
Meetings are for members, prospective members and invited guests only. For non-members, RSVP is required by writing to chapter chair, Dan Ruchman at [email protected]. Please include a one or two sentence description of who you are, and your interest in attending the meeting. Thank you.

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