By now, if you’re a business owner, you may have heard of the Employee Retention Tax Credit (ERTC/ERC). It was implemented through the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 and is a refundable tax credit. It was created as an incentive for businesses that kept W2 staff on the payroll even as business owners encountered major financial setbacks during the height of the COVID-19 pandemic.
But did you know that small retailers can use ERTC funds to make their business more competitive? The funds you could potentially receive thanks to the ERTC can be used for many things – including to support your business in a competitive market.
The ERTC Supports Small Retailers in a Competitive Market
For 2020, employers can get a credit of up to 50 percent of $10,000 in qualified wages paid ($5,000) per employee for the ERTC. Employers can also claim a credit of up to 70 percent of $10,000 ($7,000) of qualified wages paid per employee per quarter for the first three quarters of 2021 for a total of $21,000 for the year.
That means if your business qualifies to claim the ERTC, you could claim a refund of up to $26,000 per employee for the eligibility period. That could result in a serious influx of cash for your small business depending on the number of employees and their wages you’re able to claim!
The ERTC can support small retailers in a competitive market because the funds you receive through the program can go toward initiatives that make your business more competitive. You can use the money to upgrade equipment, for instance, which could make you more efficient or able to provide new and better products.
Or, you could use Employee Retention Tax Credit funds to increase your marketing budget, which can expand your reach and help you get new customers in your market. You could also choose to make your company more competitive by attracting stronger talent, thanks to the salary and benefits you can offer your employees. Better, happier employees can certainly improve your ability to compete in your industry.
Another area you might want to consider allocating ERTC funds is to invest in new or better technology like software enhancements or stronger digital tools. This has the potential to increase productivity at your company which, again, can make it more competitive overall.
The sky is kind of the limit when it comes to the ERTC. Its ability to support small retailers in a competitive market is relatively unmatched, but ERTC funds don’t come to small businesses automatically. You need to apply for the ERTC and make sure your application is as strong and accurate as possible to avoid issues with the IRS later. Luckily for you, Dayes Law Firm can help.
ERTC Team at Dayes Law Firm
Dayes Law Firm can help you apply for the ERTC and answer any questions or address any concerns you may have about the tax credit. Our firm offers a free, no-obligation consultation of your situation to make sure you qualify to claim the Employee Retention Tax Credit in the first place, and we can help you with the claims process after that.
We are proud to say our team and our partner firms have already helped hundreds of business owners file for the ERTC and the filings represent more than $100 million in tax credits. Our firm has assisted businesses in filing for over $250 million in ERTC claims and we help new businesses all the time.
Please reach out to us to see why we’re the right choice to help you with the ERTC and get you significant funds you may be entitled to – funds that could help your business be more competitive in a tough market. Please call us at (800) 503-2000 to learn more!