Can the ERTC Incentivize Employees to Pursue Further Education?
As an employer, you want your workers to operate efficiently. The more education someone has, the more likely they are to provide you with high-quality work. However, not every worker wants to pursue higher education, so employers may have to find ways to incentivize them.
ERTC benefits offer a unique opportunity for employers. You can use these funds for various business-related needs, including those related to education. Dayes Law Firm offers insight into this credit and how it could benefit your company.
What Is the ERTC?
During and after the COVID-19 pandemic, the government created programs to help impacted individuals. The PPP loan forgiveness program, for example, allowed a borrower to request forgiveness after they’d used their funds. The Infrastructure Investment and Jobs Act, signed into law in 2021, gave funding to help with infrastructure and transportation spending.
The Employee Retention Tax Credit (ERTC) is another such program. Part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, this program aimed to provide relief to businesses impacted by the pandemic. Eligible businesses meet one of two criteria:
- Experienced a decline in gross receipts during 2020 or the last three quarters of 2021
- Experienced a partial or full suspension of operations due to governmental orders
Should a business meet the criteria, it can claim a tax credit based on qualified wages from any employees it retained during the filing quarter. Employers may use their ERTC benefits in any way they like, so long as it supports business operations.
How Can You Use the ERTC To Encourage Employees To Pursue Higher Education?
If you want to encourage employees to expand their knowledge, the ERTC may give you an excellent opportunity. You can use this credit to fund programs or offer bonuses as incentives, helping improve your employees’ lives and business operations.
Invest in Training Programs
Not every worker will want to take the time off to pursue education themselves. Training programs act as good compromises; they help workers further their knowledge without extra inconvenience. The ERTC credit can help you create and fund these programs to improve workers’ skills.
Offer Tuition Assistance Programs
Many individuals hesitate to pursue higher education because of the tuition costs. Not everyone has the money to spend on college, and taking out a loan might not be feasible.
Tuition programs can mitigate this burden. These programs allow an employer to help cover some of the tuition costs, which can make pursuing education more affordable. Using your ERTC credit to help fund a program like this may incentivize employees to consider furthering their education when they’d otherwise hesitate.
Perhaps you don’t believe your ERTC credit will be enough to cover a full tuition assistance program. If so, you may want to consider offering one-time bonuses. Should an employee complete a degree, for example, you could pay them extra money. For certain employees, this may be enough motivation to consider pursuing higher education.
Why Encourage Employees to Pursue Higher Education?
Educated employees offer several advantages to companies, including:
- Increased productivity
- A higher quality of work
- Increased job satisfaction
- Improved adaptability
Discover How You Can Use Your ERTC Credit With Dayes Law Firm
If you want to help your employees pursue further education, you first need to claim your ERTC benefits.
At Dayes Law Firm, we can help you learn more about this credit, assist with your claim, and more. We have extensive knowledge about this program and will go above and beyond to provide you with support. Call 866-875-1005 to request a consultation today.