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Quiz: PPP and Taxes | Supporting Strategies

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Preparing Your Business Taxes? Take Our Quiz on PPP, ERC and EIDL

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Are you leaving money on the table? Take our bookkeeping business tax preparation quiz with information on PPP, ERC and EIDL.

As businesses prepare for tax season this year, business leaders look to make the most of the CARES Act. From tax credits to loans, this bookkeeping quiz will test your knowledge on new items for this tax season.

In past years, we've tried to have a little fun with this quiz while also giving you a heads-up about important changes that could affect your business. But there was nothing funny about the coronavirus pandemic and the havoc it wreaked on businesses in 2020. So we're going to play it straight this time as we test your knowledge of the many tax-related changes that the pandemic has wrought.

One thing is the same, though: The answers, and your overall grade, are at the end.

1. What percentage of each employee's wages are qualified employers allowed to claim under the Employee Retention Credit (ERC) for the 2020 tax year?

  1. 25%
  2. 50%
  3. 75%
  4. 100%

2. What's the maximum amount of each employee's salary that can count toward the ERC for the 2020 tax year?

  1. $2,500 per quarter
  2. $5,000 per quarter
  3. $7,500 per quarter
  4. $10,000

3. What's the maximum number of employees you can apply to your ERC qualified wage base for the 2020 tax year?

  1. 100
  2. 250
  3. 500
  4. 1,000

4. What does the IRS estimate will be the cost per hour to business owners who file for safe harbor protection for their Paycheck Protection Program (PPP) loan forgiveness?

  1. $95
  2. $195
  3. $495
  4. $950

5. Economic Injury Disaster Loan (EIDL) coverage has been extended to 2021. What's the largest grant your business can receive without repaying it? 

  1. $5,000
  2. $7,500
  3. $10,000
  4. $50,000

6. If you deferred deposits of Social Security taxes last year under the CARES Act, 50% came due on December 31, 2020. When is the remaining 50% due?

  1. March 15, 2021
  2. April 15, 2021
  3. June 30, 2021
  4. December 31, 2021

7. In addition to payroll, the PPP included which of the following expenses?

  1. Interest on a covered mortgage obligation
  2. Qualified rent obligations
  3. Qualified utility payments
  4. All of the above

 

ANSWERS

  1. B
  2. D
  3. C
  4. A
  5. C
  6. D
  7. D

Your Grade
7: You must have good bookkeeping support.
5-6: Sounds like you had a rough year. Here's hoping you have a better 2021.
2-4: Beware: What you don't know about your CARES Act tax obligations can hurt you.
0-1: Apparently you didn't need PPP or EIDL help to get through 2020. Consider yourself fortunate.

Learn More About PPP, ERC and Bookkeeping

At Supporting Strategies, our experienced, U.S.-based professionals use secure, best-of-breed technology and a proven process to provide a full suite of bookkeeping and controller services. Are you ready to learn how you can move your business forward? Contact Supporting Strategies today.

Jane Lvovskiy

Author:

Jane Lvovskiy

Jane Lvovskiy, Managing Director of Supporting Strategies | Brooklyn - Staten Island, provides bookkeeping and controller services to businesses throughout Brooklyn and Staten Island, NY.

Legal and Tax Disclaimer

This website is created by Supporting Strategies to provide general bookkeeping and accounting information only. Supporting Strategies does not provide tax, legal or accounting advice, and the information contained herein is not intended to do so. As such, the information provided should not be used as a substitute for consultation with professional tax, legal, and accounting advisors, and you should consult with a tax, legal and accounting professional before engaging in any transaction.