Can Businesses Use the ERTC as a Recruitment Tool?

October 12, 2023
Dayes Law Firm

The job market has been inconsistent for talent acquisition and employees in recent years. This issue is only exacerbated when you’re working in a competitive talent market. 

The Employee Retention Tax Credit (ERTC) helped business owners and employees when the COVID-19 pandemic was at its height. It’s evident that the credit helped retain employees, but can you also use the ERTC as a recruitment tool? The answer is yes. Continue reading to find out how.

What Is the ERTC? 

The Employee Retention Tax Credit is a refundable tax credit the government introduced through the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020. It incentivized qualifying businesses to keep employees on their payroll by refunding them 50% of qualifying wages up to $10,000 per employee.

In 2010, the Consolidated Appropriations Act expanded this credit to more businesses and allowed them to collect 70% of qualifying wages up to $10,000. 

Now that businesses are open for business as usual again, how can you continue to use tax credit opportunities to your benefit?

The ERTC as a Recruitment Tool

How do you use the ERTC as a recruitment tool? The ERTC benefits you, but it also benefits current — and future — employees. 

Economic Boost

Your ERTC benefits can give you the financial boost to hire more employees or raise the salaries of the positions you’re trying to fill. When competing with other employers, offering competitive wages is a must as one of your hiring incentives.

If you can expand your team, you can expand your business’s potential. 

Create a New Position

Some businesses are filling positions specifically for the ERTC. If you’re a business owner who just doesn’t have the time to go through your 2020 and 2021 records, you can hire an ERTC team to do it for you. They can:

  • Review your records
  • Determine eligibility
  • Help you file for the credit and track its progress
  • Guide you through the auditing process if necessary
  • Help you manage the funds 

Dedication to Your Employees

Finally, you can use the ERTC as a talking point when recruiting new employees as proof of dedication to your staff. Yes, the ERTC offers the employer tax benefits, but it also directly benefits employees. It allows you to continue paying them fairly and retain the people who ensure your business runs smoothly. 

The ERTC also covers some healthcare benefits, so you can use this to explain your investment in your employees’ wellness. Employees want an employer who cares about them as an individual, not just a number. You can use your claim of the ERTC to prove this and explain how you use the funding to benefit your employees as well. 

Does Your Business Qualify for the ERTC?

Before you can use the ERTC as a recruitment strategy, you first need to know if your business is eligible for the tax credit. 

To qualify for the ERTC in 2020, you must have seen a 50% gross revenue loss when comparing quarters from 2020 to 2019. Alternatively, you can qualify if you had to partially or fully suspend operations in response to a government mandate.

To qualify for the ERTC for 2021 wages, you must have seen a 20% loss or a suspension of operations from a government mandate. 

Claim the ERTC With Experienced Tax Attorneys

Now that you know how to use the ERTC as a recruitment tool, you might wonder how to claim it. Don’t worry; our team at Dayes Law Firm is here to help. We’ve assisted hundreds of businesses with claiming the ERTC. Call 866-567-4510 to get started.