| Financial Impacts, Statements & the Employee Retention Tax Credit (ERC). |
| Hosted by IECRM February 8, 2022 |
| IECRM is honored to provide our members with value-rich forums that pertain to our industry. Below you will find a bulleted recap of the discussion and helpful links to resources. Watch the VIDEO RECORDING of this week’s forum: Financial Impacts, Statements, Private Sector Retainage (HB21-1167) & the Employee Retention Tax Credit (ERC) If you have any questions to ask of our subject matter experts or suggestions for future Member Forums, please contact IECRM CEO Marilyn Akers Stansbury at [email protected] or 303.853.4886. SUBJECT MATTER EXPERTS: ● Reed Sellers, CPA, CCIFP Wipfli, Partner [email protected] | O: 720-531-4458 https://www.wipfli.com/ ● Pete Aden, CPA, CCIFP Wipfli Partner [email protected] | O: (720) 531-4429 https://www.wipfli.com/ Disclaimer – The information discussed on this forum is constantly changing. Please consult with your accountant or tax advisor. RELEVANT RESOURCES ● FAQs for Colorado’s New Contractor Retainage Law ● HB21-1167 ● FAQs: Employee Retention Credit under the CARES Act Please reference the PowerPoint presentation sent to your email or watch the video for this valuable information. This is important new information that may benefit your company financially if you are eligible;we encourage you to share this information with your finance/accounting department and your CPA. Discussion included the following topics: ● Financial Statement Impacts – Netting ● Colorado Retention HB-21-1167 ● Employee Retention Tax Credits ● Q & A (listed below) Q&A ● What are fees that companies should be prepared to pay for a professional handling their ERC?Fees for some professional services are working on a 30-35% contingency fee. Wipfli does not work this way. ● What is qualifying? Employees definitely came and went during 2021 who qualifies? if an employee was only with the company for a couple months do we still file for a credit for those employees?Yes, ERC still applies. ● Did you say 2021 quarters that qualify are Q1-Q3 not Q4?That is correct. The infrastructure act changed and retention credits are not available for quarter 4. ● Is Q1 eligibility based on 20% reduction in revenue of Q4 2020 to Q4 2019? (See reference below) |
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| ● Did you comment on timing for ERC credit receipts? I’ve heard anything from a month or two to a year on timing with IRS, what’s the trend currently?The time frame is about 9-12 months. ● If your PPP period ended in Q2, are you eligible then for ERC in Q3 or Q4?Correct. The double-dip applies to the quarter and not the annual year. Also, please reference the latest Paid Sick Leave and COVID ETS information through Fisher Phillips Resources pages. Please contact Kristin White, Fisher Phillips, with questions.● Employers COVID-19 Compliance After OSHA Pulls Vaccine ETS● Denver Partner Explains New Paid Sick Leave Obligations for Colorado Employers Kristin White, Attorney at Law Fisher & Phillips, LLP [email protected] | O: (303) 218-3658 https://www.fisherphillips.com/offices-denver Legal Updates As of Jan. 1, all Colorado employers—regardless of size—are subject to traditional paid-sick-leave requirements thanks to the Healthy Families and Workplaces Act. Additionally, public health emergency leave is still in effect for all Colorado employers given that the pandemic is still with us in the new year. What do Colorado employers need to know about your new and continuing paid sick leave obligations Healthy Families and Workplaces Act Beginning Jan. 1, the act requires all employers to provide paid sick leave to their employees, accrued at one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours. Employers with more than 16 employees have been providing this leave since Jan. 1, 2021. Employee Rights and Employer ObligationsAn employee: ● Begins accruing paid sick leave when the employee’s employment begins. ● May use paid sick leave as it is accrued. ● May carry forward and use in subsequent calendar years paid sick leave that is not used in the year in which it is accrued. If you already have a more generous paid-time-off (PTO), vacation or sick-leave policy (meaning providing at least 48 hours of sick leave), you do not need to provide additional leave. But the accrual must be as generous as that required in the act and be available immediately and for part-time employees. Additionally, the PTO policy must provide notice to an employee that additional leave will not be provided as the PTO policy meets the requirements of HFWA. Additionally, while the act refers to paid sick leave as “wages,” it specifically provides that unused paid sick leave need not be paid out at termination. Any unused paid sick days must be reinstituted if the employee is rehired within six months of termination. The paid sick leave also carries over to any successor employer. What Can Leave Be Used For? Employees may use accrued paid sick leave to be absent from work for the following purposes: ● The employee has a mental or physical illness, injury or health condition; needs a medical diagnosis, care or treatment related to such illness, injury or condition; or needs to obtain preventive medical care. ● The employee needs to care for a family member who has a mental or physical illness, injury or health condition; needs a medical diagnosis, care or treatment related to such illness, injury or condition; or needs to obtain preventive medical care. ● The employee or family member has been the victim of domestic abuse, sexual assault or harassment and needs to be absent from work for purposes related to such crime. ● A public official has ordered the closure of the school or place of care of the employee’s child or of the employee’s place of business due to a public health emergency, necessitating the employee’s absence from work. Documentation Employers may require documentation from the employee if they take four or more consecutive paid sick days. Public Health Emergency Paid Sick LeaveIn addition to the new paid-sick-leave law that just went into effect, all employers in Colorado have been obligated to provide public-health-emergency (PHE) leave since Jan. 1, 2021. Under state law, all Colorado employers must provide this leave if there is a federal, state or local declaration of emergency. While our state declaration has been lifted, the federal declaration is currently still in place, and therefore the obligation to provide PHE leave is still currently in place. However, PHE leave is a one-time leave obligation. If an employee used all of their supplemental PHE leave in 2021, they must rely on their accrued leave or take any additional COVID-19 leave unpaid. Use of PHE LeaveAs background, the act requires an employer to provide its employees an additional amount of paid sick leave during a public health emergency in an amount based on the number of hours the employee works. There is no documentation requirement for an employee to take this leave for self-isolation due to a positive diagnosis, seeking medical treatment with respect to a disease, caring for a family member or a child, or inability to work due to pre-existing health conditions. Amount of LeaveFor full-time employees, this amounts to up to 80 total hours of leave. For employees who regularly work less than 40 hours per week, employers must provide the greater of the number of hours the employee is scheduled to work in a 14-day period or the average time the employee works in a 14-day period. What Should Employers Do?Employers should make sure they have updated their paid-leave and COMPS posters and are providing COMPS Order #38 to employees with any handbook updates. The paid-leave poster and notice provides employees with a written notice of their rights under HFWA. You should also ensure your policies are up to date, and you should schedule an internal training for your human resources staff and managers on the new and continued requirements. Kristin R.B. White is an attorney with Fisher Phillips in Denver. © 2022 Fisher Phillips. All rights reserved. Reposted with permission. |
| RESOURCES: Colorado HFWA INFO _6B – 12_2021 updates.pdf IECRM Member Forum Financial Impacts Wipfli 2-9-22 (2).pdfMember Forum Packet 2022.0209.pdf |
 Marilyn Akers StansburyCEOIndependent Electrical Contractors – Rocky Mountain (IECRM)11429 Pearl Street, Northglenn, CO 80233Direct: 303.848.2513 | Office: 303.853.4886 | Cell: 404.435.6487 [email protected]www.iecrm.org |
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