Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Do you know what qualifies for a government shut down under the ERC?

Name: Painting Business Owners: Do you know what qualifies for a government shut down under the ERC?
Uploaded: 2023-12-19T18:33:41+00:00
Duration: 47 s
Channel: Daniel Honan
Description: Painting contractors can claim the Employee Retention Credit for government shutdowns, but only if there's an official executive order from a governor or…

19 Dec 2023 · 1 min

Watch on YouTube

0:47

Painting contractors can claim the Employee Retention Credit for government shutdowns, but only if there's an official executive order from a governor or mayor, not just a recommendation to stay home. Most qualifying shutdowns happened in Q2 2020. You'll need to find and document the specific order, often listed by trade, on state government websites or natlawreview.com.

Chapters

Where people can sometimes get tripped up is what is a government shutdown? It needs to be an actual order. It needs to be from a governmental official, whether that's the governor of the state or the mayor of your county. And it can't just be a suggestion. We are encouraging people to stay at home is not a shutdown. These shutdowns did occur mostly in the second quarter of 2020. We want to make sure that we can actually document the executive order.
There's some resources out there if you don't remember the government shutdown. There's some websites that have kept track of what counties and states had those shutdowns. Because you'll have to find the government order in the appendix that shows that building finishing contractors or painting contractors were unable to do work for this period of time. Go to your state website. They, there's some like natlawreview.com lists of those shutdown orders.