Can the ERTC Help Businesses Promote Commitment to Employees?

November 30, 2023
Dayes Law Firm

Beyond claiming your refund through the Employee Retention Tax Credit (ERTC), you can boost your business’s reputation and improve employee satisfaction through ERTC marketing campaigns.

With a strategic internal marketing campaign, you can emphasize your commitment to employee retention and enjoy a range of potential benefits. Dayes Law Firm can help you learn more about the ERTC and how you can use it in your marketing.

Understanding the ERTC

During the COVID-19 pandemic, many businesses had to suspend operations. This may have led to a significant revenue drop — which, in turn, made it harder to keep employees on your payroll.

The government introduced the Employee Retention Tax Credit to combat this. The ERTC is a refundable tax credit for every employee you retained during 2020 and the first three quarters of 2021. In 2020, you could claim up to 50% of qualified wages, and in 2021, you could claim up to 70%.

To be eligible, you must have experienced suspended operations or a decline in gross receipts. Make sure to work with a professional to determine eligibility since IRS examinations have increased due to fraudulent ERTC claims.

Benefits of the ERTC

The ERTC offers several major advantages, including:

  • Employee Retention: The ERTC primarily aimed to encourage employers to retain employees. This benefit extends beyond the pandemic itself; using your ERTC benefits, you can avoid downsizing, helping you improve productivity and avoid the stress of hiring new workers.
  • Tax Savings: The ERTC offers a unique advantage for business owners; because it’s a refundable credit, you can claim it even if you don’t owe any taxes. This, in turn, provides you with extra income that you can put towards growing your business.
  • Financial Support: You can use the ERTC credit for almost anything as long as it supports business operations. This means that you could use it to invest in training programs, buy new equipment, or offer employee bonuses, among other things.

Using the ERTC To Improve Your Reputation

Employee retention is a key aspect of the ERTC — and emphasizing it to fund marketing campaigns can help enhance your business’s reputation. By focusing on retention, your business:

  • Can build trust with your employees. In today’s economy, employment security is important. Focusing on employee retention can reduce your employee’s security, encouraging them to stay longer and work harder for your business.
  • Attract qualified new hires. Because employees want stable jobs, they’ll look for companies that have low turnover rates. As such, by focusing on retention, you may attract more highly qualified professionals for open positions.
  • Build public goodwill. Many customers prefer to work with businesses that treat their employees well. By doing everything you can to keep your employees on staff, you can boost your reputation and potentially increase revenue.

ERTC marketing campaigns can help you really push your commitment to employee retention — but you need to make sure you plan effectively.

Emphasize Where You’ll Allocate Funds

Consider laying out where you plan to allocate funds for your business. Make this information available to both employees and the public; this transparency can boost your reputation and back up your claims.

Make a Statement

Create a blog post, press release, or other statement emphasizing your commitment to employee retention. Public statements help the news reach others, which can boost your reputation.

Use Word of Mouth

Talk about your retention plans and encourage employees to discuss any bonuses they’ve received to boost your brand reputation and show how you are using your ERTC funds to reinvest in your staff.

Request Help With Your Claim by Contacting Dayes Law Firm

Learn more about ERTC marketing campaigns and file your claim by contacting Dayes Law Firm. Call 800-503-2000 to request a consultation.