ES Bancshares, Inc. Receives First Employee Retention Credit Installment
ES Bancshares, Inc. (OTCQX: ESBS), the holding company for Empire State Bank, has made an important financial advancement by receiving the first installment of its Employee Retention Tax Credit amounting to $268,000. This initial installment is set to be reflected in the second quarter earnings for the year.
Financial Background and Impact
The company previously filed a claim with the Internal Revenue Service (IRS) for a total of $1.2 million in Employee Retention Credits obtained through an application process initiated in 2023. This claim pertains to the years 2020 and 2021, during the period of the COVID-19 pandemic when many businesses were eligible for refundable payroll tax credits due to qualified wages paid.
Understanding Employee Retention Credit
The Employee Retention Credit is a vital support measure designed for businesses that retained employees during challenging economic conditions. Generally classified as non-taxable income, receiving these credits does also require ES Bancshares to amend previous tax returns for the years 2020 and 2021. This adjustment will consequently affect their payroll tax deductions from those years, leading to an increase in federal income taxes owed.
Future Expectations for ES Bancshares, Inc.
Looking ahead, the company anticipates receiving further installments of the Employee Retention Credits throughout 2025 and 2026. This financial support gives ES Bancshares, Inc. a stronger foundation as it continues its focus on stability and growth following the disruptions caused by the pandemic.
Company Overview
ES Bancshares, Inc. operates as the holding entity for Empire State Bank and is registered under the laws of Maryland. The bank was established in 2004 and is now a national bank subject to oversight by the Office of the Comptroller of the Currency, later transitioning to a New York State commercial bank in 2009. Its primary business encompasses gathering commercial and retail deposits and investing those funds into loans, including commercial real estate and consumer mortgage loans.
The Role of Empire State Bank
Empire State Bank plays a crucial role within the company structure, operating through various banking center locations and serving a vital purpose by facilitating deposits and loans. This structure not only stabilizes the company's financial standing but also strengthens the local commercial real estate market significantly.
Corporate Communication
For inquiries or more information, the public can reach out to the company's corporate secretary, Peggy Edwards, directly at (845) 451-7825. The official website of the company, www.esbna.com, provides access to annual reports and press releases, ensuring transparency in their operations.
Frequently Asked Questions
What is the Employee Retention Credit?
The Employee Retention Credit is a refundable payroll tax credit provided to businesses that retained employees during the challenges posed by the COVID-19 pandemic.
How much did ES Bancshares, Inc. receive in the first installment?
ES Bancshares, Inc. received $268,000 as the first installment of its Employee Retention Tax Credit.
When was the claim for the Employee Retention Credit filed?
The claim for the Employee Retention Credit was filed in 2023 for the years 2020 and 2021.
What is the expected outcome of the ongoing ERC installments?
The company expects to receive multiple installments of the ERC throughout 2025 and 2026, enhancing its financial resources.
How can I get in touch with ES Bancshares, Inc.?
You can contact the corporate secretary, Peggy Edwards, at (845) 451-7825 for further inquiries.
