How Can the ERTC Be Used to Invest in New Technology?

December 6, 2023
Dayes Law Firm

The Employee Retention Tax Credit, also referred to as the ERTC or ERC, has been a game-changer for many businesses. Since employers can potentially claim thousands of dollars per employee through the program, that money can be used to make big changes at all sorts of companies in all sorts of fields. Some employers may even choose to use the ERTC to invest in new technology. 

What is the ERTC?

The Employee Retention Tax Credit is a refundable payroll tax credit many eligible businesses can claim on qualified wages paid to employees if they kept staff on their payroll despite major financial setbacks during the early days of the COVID-19 pandemic, back in 2020 and 2021.

The tax credit is available to qualified employers that experienced a full or partial shutdown of operations due to a governmental order related to COVID-19, or if a business experienced a decline in gross receipts in 2020 or 2021 as compared to the same quarter in 2019.

Business owners can claim a maximum ERTC of $5,000 per employee for the entire 2020 tax year and a total of $7,000 per quarter for the year 2021. Since only the first three quarters of 2021 are eligible for the Employee Retention Tax Credit, the credit amount maxes out at $21,000 per eligible employee. That means business owners can potentially claim up to $26,000 per employee.

With that sort of money, employers who qualify for and are approved to get ERTC funds could certainly use it to invest in new technology.

Using the ERTC to Invest in New Technology

If you apply for the ERTC and get a significant amount of money through the program, you could use it for all sorts of purposes for your business. For instance, you might choose to offer new benefits or bonuses to employees who stuck with you in 2020, or you could hire new employees. You could also put that money into things like marketing and research. 

But one area you should strongly consider investing your ERTC money is in new technology. If you have new projects or services you want to get off the ground, upgrading your current technology could make that possible. Having upgraded technology could also mean improvements in communication with clients, from phones to online chat development and more. 

If you upgrade your equipment and technology, it could result in improved efficiency and lowered maintenance costs at your company, which is obviously a huge bonus! Employee Retention Tax Credit funds can impact lots of different aspects of your business for the better, and if you haven’t yet applied for it and are eligible to do so, you should seriously consider claiming the ERTC sooner rather than later. 

Working with Dayes Law Firm

Dayes Law Firm can help you apply for the Employee Retention Tax Credit. Our team and our partners have already assisted a number of businesses with filing for over $250 million in Employee Retention Tax Credit claims so far, and we continue to help additional business owners all the time. 

Dayes Law Firm attorneys are ready to discuss any of your questions or concerns about the ERTC in a free, no-obligation consultation. We can work with you to determine how much you’re eligible to claim, so you can better determine what sort of funds you might expect to receive and what you could use the money for – including investing in new technology. 
Please feel free to contact us today to learn more. Give us a call at (800) 503-2000. We look forward to hearing from you!