Can You Use the ERTC on Business Risk Management?
As you think about how your business will use the Employee Retention Tax Credit (ERTC), consider whether investing in risk management would be a wise option for your company. Risk management is the process of anticipating and controlling threats to your company. It’s an investment that could save your company hundreds of thousands of dollars.
Learn how you can use the ERTC for business risk management.
How Much ERTC Money Can You Expect?
Before you decide how to use your ERTC money, understand how much you can expect to gain, if anything. This credit is available to eligible employers who experienced a disruption to their operations during the COVID-19 pandemic. If your business’s disruptions qualify as a full or partial suspension of operations, you may be able to regain a certain amount back for qualified wages you paid in 2020 and 2021.
Businesses can claim up to $28,000 worth of credits per employee. You can calculate your credits by taking 70% of the eligible wages you paid to each employee or by using an ERTC calculator.
Ways to Use the ERTC for Business Risk Management
You can use the ERTC for business risk management in a few different ways. Depending on the amount of money your credit is worth, you may want to invest in some or all of the following risk management strategies.
Schedule a Risk Audit
A risk audit helps you understand potential threats to your business’s operations and growth. Often, businesses are unaware of the threats looming over them, and one seemingly small incident can send their business into a serious spiral. With a risk audit, you can better understand how close your business is to disaster, then take measures to mitigate your risk.
Hiring a risk management professional to conduct your audit will likely improve your outcomes compared to conducting the audit yourself. These professionals can help your business identify all of the following types of risks you may be vulnerable to:
- Security risk
- Legal risk
- Operational risk
- Reputational risk
- Technology risk
- Financial risk
- Competitive risk
Hire a Risk Management Consultant
Aside from simply conducting a risk audit, you can hire a full-scale risk management consultant to help your business identify and mitigate risks. By using the ERTC for risk management consultancy services, your business can:
- Evaluate every step of your supply chain and customer journey
- Determine the severity of each threat
- Form detailed plans to mitigate each threat
- Create a plan of action to implement those plans
- Evaluate the performance of your risk management strategies over time
Work With a Tax Attorney
Your business can invest in other forms of risk management aside from hiring a risk management consultant. For example, working with a professional tax attorney can help you avoid tax errors that can cost you a significant amount of money in fees and penalties. They can help you apply for all relevant tax credits and deductions to minimize your tax liability.
A tax attorney can also help you prepare for an audit. Ensuring the accuracy of your taxes now can prevent an audit from disrupting your business operations. If you’re already facing an audit, a tax attorney can help you organize your finances in preparation.
Dayes Law Firm: Your ERTC Tax Attorneys
Using the ERTC for business risk management is a strategic way to prevent costly issues within your company. At Dayes Law Firm, our tax attorneys are committed to helping businesses like yours maximize ERTC money while ensuring the accuracy of your calculations and wage deductions. It’s not too late to apply for the ERTC. Contact us today at 800-503-2000 to request your free consultation.