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Partner-led accounting, tax, advisory, and audit for middle market companies.

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Our seasoned professionals deliver tailored accounting, audit, tax, and finance solutions that drive positive change.

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Full-Service Bookkeeping & Accounting

We run the day-to-day accounting that keeps operations stable. Every engagement is partner-led, so you never have to wonder if someone is paying attention.

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Tax Compliance & Advisory Services

Proactive insight for your compliance and planning cycles. Our senior professionals manage the execution so your risk is minimized and your strategy stays clear.

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Corporate Finance Advisory Services

The technology is smart, but the judgement is human. We build the financial models and deep analysis required for confident leadership decisions.

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Technical Accounting Services

From revenue recognition to complex transactions, we tackle technical accounting with expert analysis and clear documentation.

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Employee Retention Credit: You May Qualify!

For businesses that have been severely impacted by COVID-19, an employer tax credit was provided under Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), called the Employee Retention Credit. The purpose of the Employee Retention Credit is to encourage businesses to keep employees on their payroll during these challenging times. For 2020, the Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that eligible employers pay their employees. The credit applies to qualified wages paid after March 12, 2020, and before January 1, 2021. The maximum amount of qualified wages considered for each employee is $10,000 for all calendar quarters, with a maximum credit of $5,000. This high-level summary of the qualifications and the process for claiming the credit can help you determine if you qualify. Who is an Eligible Employer? As defined under the CARES Act, an eligible employer is any employer that carried on a trade or business during calendar year 2020 and met either of the following criteria during any calendar quarter in 2020: The operation of the trade or business was fully or partially suspended due to government orders limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19. The employer had a significant decline in gross receipts for the quarter as compared to the comparable quarter in 2019. To qualify as having a significant decline in gross receipts for 2020, the business must demonstrate its gross receipts for the calendar quarter were less than 50 percent of the gross receipts for the same calendar quarter in 2019. The significant decline in gross receipts ends with the calendar quarter that follows the first calendar quarter after which the business’s quarterly gross receipts are greater than 80 percent of the gross receipts for the same calendar quarter in 2019. What are Qualified Wages? Qualified wages generally mean wages as defined in section 3121(a) of the Internal Revenue Code and compensation as defined in section 3231(e) of the Code. Qualified wages also include amounts paid by an eligible employer to provide and maintain a group health plan as provided in the CARES Act, but only to the extent those amounts are excluded from employees’ gross income (per section 106(a) of the Code). How Do I Claim the Credit? For most employers, the total qualified wages and the related health insurance costs for each quarter are reported on Form 941. The credit is taken against your share of Social Security tax, and any excess is refundable. You can also retain the corresponding amount of employment tax deposited in anticipation of the credit and submit a Form 7200 to request an advance on the credit. It’s Already 2021. Can I Still Claim the Credit for 2020? If you’re unable to claim for the credit in the previous periods, you can file a Form 941-X (Adjusted Employer’s QUARTERLY Federal Tax Return or Claim for Refund) to request a refund. Generally, you must file this form within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later. Is the Credit Still Available for 2021? Yes, it is. The IRS extended the credit to wages paid after December 31, 2020 and before July 1, 2021 and modified the credit calculation. For 2021, the significant decline in gross receipts is based on an 80 percent threshold for each calendar quarter, the qualified wage limit for any calendar quarter is $10,000, and the credit is equal to 70 percent of qualified wages, allowing a maximum credit of $7,000 for each employee for the first and second quarter of the year. These limits continue to apply in the third and fourth calendar quarters in 2021, but with a separate credit limit applying to “recovery startup businesses.” What is a Recovery Startup Business? Section 3134 of the Code adds a third category of employers that are eligible for the Employee Retention Credit for the third and fourth calendar quarters of 2021: recovery startup businesses. The IRS defines a recovery startup business as one that began carrying on any trade or business after February 15, 2020, has average annual gross receipts less than $1 million for the 3-taxable-year period ending with the taxable year that precedes the calendar quarter for which the credit is determined, and is not otherwise an eligible employer (because it doesn’t qualify based on either full or partial suspension of operations or a decline in gross receipts). The Employee Retention Credit for a recovery startup business can’t exceed $50,000 for each of the third and fourth calendar quarters of 2021. How Does the Credit Interact with the PPP Loan? Even if your business received a Paycheck Protection Program (PPP) loan, you may be eligible for the Employee Retention Credit. However, qualified wages used in the credit are excluded from the payroll costs during the covered period that qualify for forgiveness under the PPP.

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If I had to name the first common mistake I see growing companies make when they tackle ESG reporting, it is foundational: They don't know if the data they are using is complete and accurate.

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We’re excited to announce that Vince De Leon has been appointed as Scrubbed’s Chief Executive Officer. Vince has been with Scrubbed since the beginning, most recently serving as Chief Technology Officer. In that role, he was responsible for the firm’s infrastructure and technology and advised clients on systems that enable consistent execution at scale. He brings more than 20 years of experience across accounting, operations, and technology advisory I’m grateful for the trust the Scrubbed Board has placed in me, and I’m genuinely excited about the opportunity ahead. I’ve been with Scrubbed since its early years, and my diverse background spanning finance, operations, and technology has given me a deep understanding of how every function of our organization connects to delivering exceptional client experiences. I’m ready to lead our organization forward with this talented team. - Vince De Leon Co-founders Mark Pineda and Gani Laguisma will remain active on the board and continue to support Scrubbed’s growth. “We’ve built Scrubbed into a stable, continuously growing organization that’s now poised for scale, and this is exactly the right moment to bring in someone with fresh energy to take us to the next level,” Pineda said. “ Vince is the ideal choice because he’s been with us from the start, he understands our culture and our vision, and he’s proven himself as a leader within our ranks. He has our full support as a board, and I’m confident he’s going to supercharge our growth in a way that’s going to benefit everyone in this organization.” “This leadership transition is intentionally a step forward to a new chapter in the evolution of Scrubbed. The purpose and mission to create a professional service firm from good to great in serving its people, market and the community at large will remain the same,” Laguisma said. “ Vince is exceptionally well-positioned to lead this next phase, and I’m confident he’ll bring fresh perspective and energy to accelerate our growth. As one of the co-founders, I’m honored to support this transition and remain a strategic ally to Vince and the team as we continue building something exceptional.” This transition reflects continuity, not a change in direction. Our commitment to a people-first culture, disciplined execution, and long-term client partnerships remains unchanged. We’re grateful for the trust our clients and partners place in us—and we’re excited about what’s ahead.

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SF Bay Area Headquarter
111 Anza Boulevard, Suite 320, Burlingame, CA 94010, United States

Phone: (800)837-5160
Email: [email protected]

"Scrubbed" is the brand name under which Scrubbed Advisory, LLC and Scrubbed Assurance LLP provide professional services. Scrubbed Advisory, LLC and Scrubbed Assurance LLP practice in an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. Scrubbed Assurance LLP is a licensed independent CPA firm that provides attest services to its clients, and Scrubbed Advisory, LLC provides tax, finance, and support services to its clients. Scrubbed Advisory, LLC is not a licensed CPA firm.

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