Many businesses that are eligible for the Employee Retention Tax Credit, also known as the ERTC or ERC, have still not applied for it, including businesses in the fitness industry. Gyms, fitness centers, and related businesses can certainly benefit from the ERTC and use it to make major improvements to their facilities.
The Fitness Industry May Benefit from the ERTC
The ERTC is generally available to qualified employers that paid wages to some or all employees after March 12, 2020, and before January 1, 2022. (In September 2021, however, the Infrastructure Investment and Jobs Act retroactively ended the ERTC, with exceptions made for Recovery Startup Businesses that were still eligible to claim wages through the end of December 2021.)
Businesses that qualify to claim the ERTC could potentially receive a refund of $26,000 per employee, which can mean a massive influx of money for employers who can claim it for a number of employees. Eligible businesses qualify if they operated in 2020 or 2021 and experienced either a full or partial suspension of operations as a result of a governmental order limiting certain operations due to COVID-19, or if they encountered a significant decline in gross receipts when compared to the same quarter in 2019.
If you own a company in the fitness industry and think it qualifies for the tax credit, you may want to consider working with a tax attorney to complete an ERTC application before upcoming deadlines. Even the IRS advises going this route to turn in an accurate claim.
IRS Commissioner Danny Werfel noted in an announcement in September 2023 that when it comes to getting help in claiming the ERTC, “The IRS is increasingly alarmed about honest small business owners being scammed by unscrupulous actors…businesses should seek out a trusted tax professional who actually understands the complex ERC rules.”
A tax professional can help business owners in the fitness industry turn in their strongest application so it can best benefit the business. For instance, if a fitness center owner gets the full $26,000 for several employees and receives a healthy ERTC refund, they could use that money to buy new equipment and supplies for the center. Exercise equipment is not cheap, but a sizable Employee Retention Tax Credit refund could potentially fund a whole fleet of new machines to upgrade a gym!
Fitness industry businesses could also use ERTC refund money to pay down debt accumulated during the height of the pandemic or pay rent to open up new locations. Gym owners or other fitness industry professionals could also reward their employees with higher wages or bonuses, or hire new staff like personal trainers to make their facility even more attractive to customers.
There are all sorts of ways businesses in the fitness industry can benefit from the ERTC – and Dayes Law Firm can help them make a strong claim to the IRS to get a robust ERTC refund to make those improvements happen.
Contact Dayes Law Firm for Assistance
If you’re a business owner in the fitness industry who would like some help claiming the ERTC, the team at Dayes Law Firm can help. We will work with you on every step of the application process and can answer any questions you have or discuss your concerns about applying for the tax credit.
Please contact us by calling (800) 503-2000 to find out more. Our firm offers a free consultation, and you’re under no obligation to work with us after that initial evaluation. Give Dayes Law Firm a call today to learn more!