Can the ERTC Enhance Employer Branding?

January 12, 2024
Dayes Law Firm

Has your business claimed the ERTC yet? This valuable payroll tax credit provides up to $7,000 per quarter per employee, and the IRS places no restrictions on what you can do with the money. You can use your credit on web design, advertising, market research, and anything else your business may need.

If your business might be eligible, you could use the ERTC to overhaul your branding. Learn whether or not you’re eligible for the Employee Retention Tax Credit (ERTC).

Create a Beautiful Business Logo

First impressions matter, and if your business wants to stand out, you’ll need a powerful logo. Coming up with a great logo can be tough, though, especially if you’re inexperienced in graphic design.

You can use part of your credit to hire a professional graphic designer for logo creation. Or, if you’re the DIY type, purchase design software and let your creative juices flow.

Design (or Redesign) Your Website

Your website serves as the online face of your business. If it’s outdated, unattractive, and hard to navigate, customers will likely leave and check out a competitor instead.

Pro website design can be expensive, particularly if you need a site built from the ground up. With the ERTC, you can pay a web designer to craft you a gorgeous website that works seamlessly on both desktops and mobile devices.

Determine Your Target Audience

Do you know who your target audience is? Think of your target audience as your ideal customer. Depending on your business, that could be young professionals, college students, kids, or the elderly.

To truly understand your target audience, you’ll need to do a deep dive into their likes and dislikes, spending habits, goals, and pain points. If you have ERTC funds to spare, consider hiring a branding consultant to help you with market research.

Invest in Advertising

Even if your branding is on point, customers won’t flock to your business if they’re unaware it exists. Paying for advertising is a smart way to use your ERTC benefits.

If you want the biggest bang for your buck, try online advertising. PPC (pay-per-click) advertising is appealing because you can reach your target audience no matter where on the internet they are. You can bid as much or as little as you like on keywords, and you pay nothing unless someone clicks on your ad.

Also consider offline advertising, such as TV commercials, magazine ads, and billboards. These methods are a smart way to reach local clientele.

Are You Eligible for the Employee Retention Tax Credit?

The Employee Retention Credit (ERC) allows your business to claim a percent of qualified wages paid per applicable quarter. Before you start making plans for using the credit, you’ll need to know whether you qualify. You can do so by meeting one of these requirements:

  • A significant decline in gross receipts compared to the same calendar quarter of the prior year (at least 50% for 2020 and 20% for 2021)
  • Your business closed down, either fully or partially, because of a government order limiting group meetings, travel, or commerce

If you don’t meet either requirement, you might still qualify as a recovery startup business if you launched on or after February 15, 2020. You qualify if:

  • You have at least one W-2 employee (does not include family members and owner-operators)
  • Your annual revenue is less than $1 million for the past three tax years

Both for-profit businesses and tax-exempt organizations can claim the ERTC. If eligible, claim your credit using Form 941-X: Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.

Straightforward ERTC Guidance from Dayes Law Firm

Want to learn more about ERTC benefits or find out whether your business qualifies to claim the credit? Call Dayes Law Firm at (800) 503-2000 for a free consultation now.