ERTC and SCorp owner - Spidell

ERTC and SCorp owner

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Message Board ERTC and SCorp owner

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    • #287057
      Pamela Mora
      Participant

      Can a 100% S Corp owner with no employees qualify for the credit?.  I thought I read somewhere that related parties don’t qualify

    • #287119
      Lynn Freer
      Participant

      It doesn’t qualify for owners

    • #287147
      Mary Cheek
      Participant

      Can you give me a reference to where it says that?  i have not seen that.

    • #287163
      Mary Cheek
      Participant

      under faq#48, it says,” For an Eligible Employer that averaged 100 or fewer full-time employees in 2019, qualified wages are the wages paid to any employee during any period in the calendar quarter in which the business operations are fully or partially suspended due to a governmental order or any calendar quarter the business is experiencing a significant decline in gross receipts.”

      This sounds like scorp owner/employee wages would be allowable.

    • #287176
      Lynn Freer
      Participant

      <span class=”fontstyle0″>Wages paid to related individuals, as defined by IRC §51(i)(1), are not taken into account for
      purposes of the Employee Retention Credit. (FAQ #59)</span>  A related individual includes the corporate owner of more than 50% of the stock either directly or indirectly

    • #287177
      Lynn Freer
      Participant

      Actually I was just told that there are differing opinions on this issue. We’ll report on it via a a podcast and/or a flash email. If you aren’t signed up for them, go to caltax.com

    • #287278
      Pamela Mora
      Participant

      Hi Lynn, not to rush you but any update yet?   I would love to finish up the payroll tax returns that may qualify.  I scoured the internet and can’t seem to find an answer.

    • #287329
      Lynn Freer
      Participant

      No I haven’t and it may be we’ll have to wait for guidance

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