How Can ERTC Enhance Employee Productivity and Innovation?
The Employee Retention Tax Credit (ERTC/ERC) isn’t just beneficial to business owners. The tax credit can also be used to enhance employee productivity, in addition to fueling innovation at your business. Business owners who claim the ERTC have the potential to see some massive positive changes in their companies, whether those changes involve revenue, employee retention, or other favorable differences.
Using the ERTC to Enhance Productivity
The ERTC initially acted as a significant financial incentive for employers to retain their workforce during the height of COVID-19. Even when business was down and financial futures were uncertain, some employers chose to keep their employees on staff, and the money you can apply for through the ERTC is sort of a reward for doing that.
Staying loyal to your employees is one way to enhance their productivity because they’ll have more trust that you’ll stick by them when the going gets tough and they may want to work harder when they sense that job security. Keeping your workers on staff long before there was ever even a possibility of seeing ERTC money meant you laid a strong foundation for your employees to stand by you and stay productive in their work.
Since Employee Retention Tax Credit refund money can be used for many purposes, you can also choose to put the funds you receive towards things like employee development and training, which can directly impact productivity. If your staff sees that their career and skill development is a priority to you, they’ll be more motivated, which can lead to an increase in productivity.
Another potential use of your ERTC refund money is to enhance employee benefits. By funding additional incentives, you may inspire your staff to be more committed to their work, resulting in improved productivity.
Using the ERTC to Foster Innovation
In addition to enhancing employee productivity at your company, you can also choose to use Employee Retention Tax Credit funds to support advanced projects for your business. You can fund or build out existing products with the money, which is a clear way of promoting innovation for your company.
As aforementioned, you can also put some of the ERTC money you claim toward training and skill-building for your employees. This can in turn lead to fostering innovation as your employees use their new knowledge to consider innovative solutions in their work and suggest new ideas for the betterment of your business. This training can lead your staff members to offer new, inventive strategies that can benefit your company overall.
Your potential ERTC funds could end up paying for entirely new projects or new departments within your business, which could ultimately lead to expanded innovation. The very definition of innovation is about introducing new ideas or projects, which new departments inherently do. Since your ERTC refund can be used for so many things, the sky’s the limit when it comes to using the tax credit to boost innovation.
How Dayes Law Firm Can Help
If you’re a small business owner, or really the owner of just about any business, you’ve probably got a lot going on. Adding everything involved in applying for the Employee Retention Tax Credit to your list of to-do’s might feel overwhelming. Fortunately for you, a trusted team of tax professionals – like the one at Dayes Law Firm – can help.
To date, the Dayes team has assisted businesses in filing for over $250 million in ERTC claims and our clients have already received over $25 million in ERTC funds. We can help you and your business by determining if you’re eligible for the ERTC and filing the appropriate amended quarterly payroll tax returns on your behalf to claim your funds.
We understand that you may have questions about the Employee Retention Tax Credit, and we’re more than happy to answer them for you! Dayes Law Firm offers a free, no-obligation consultation to discuss your unique situation. Please contact us by giving us a call at (800) 503-2000 to learn more today.