How Can the ERTC Benefit the Beauty and Wellness Industry?
The Employee Retention Tax Credit, also referred to as the ERTC or ERC, has the potential to make a huge difference for struggling small businesses, especially after the financial fallout of the first years of the COVID-19 pandemic. This important tax credit can benefit many small businesses, including ones in the beauty and wellness space.
Does the ERTC Benefit Small Businesses in the Beauty and Wellness Industry?
Employers can still retroactively claim the ERTC based on problems their business experienced during 2020 and the first three quarters of 2021. Business owners can claim the ERTC on qualified wages paid to their employees if they kept staff on their payroll despite major financial setbacks during the height of the COVID-19 pandemic at that time.
The Employee Retention Tax Credit is available to employers that experienced either a full or partial shutdown of operations due to governmental orders related to COVID-19, or if a business experienced a considerable decline in gross receipts in 2020 or 2021 when compared to the same quarter in 2019.
For all quarters in 2020, the deadline to apply for the ERTC is April 15, 2024 – just a few months away. For all quarters in 2021, the deadline is April 15, 2025. The credit maximum for the ERTC per employee is $7,000 for each employee per quarter in 2021, and employers can also claim a maximum credit of $5,000 per employee in 2020. That means business owners can potentially claim up to $26,000 per employee.
And yes, that includes small businesses in the beauty and wellness industry. This industry was definitely impacted by the early days of the pandemic when many hair salons, makeup service businesses, and more encountered full or partial shutdowns and other limitations.
Like many other businesses, employers in the beauty and wellness space had to contend with customer capacity limitations, increased sanitation protocols, and so much more. If your small business in this industry managed to stay open with those restrictions and you kept employees on payroll, you might be able to benefit from the Employee Retention Tax Credit.
Depending on the size of your ERTC refund, you could potentially use that money to take steps to improve your business like buying or renting new locations, offering new products to your customers, hiring additional employees, and more. In such a competitive industry, having a little extra money for projects certainly can’t hurt.
Getting Assistance with the Employee Retention Tax Credit
At Dayes Law Firm, our team can help you determine whether or not your small business in the beauty and wellness industry qualifies for the ERTC and just how much you might be able to expect in an Employee Retention Tax Credit refund. Our firm and our partner firms have helped many businesses file for millions in refunds already and we believe we can prove to you that we are the right choice to partner with on ERTC applications.
Dayes Law Firm can offer a free consultation regarding any ERTC questions or concerns you may have. Our fees are contingent upon recovering an ERTC refund for your business, which means you owe us nothing if we don’t recover an ERTC refund for you.
Please contact us today to learn more. Call (800) 503-2000 to find out how the ERTC team at Dayes can give you the best chance of getting the highest possible Employee Retention Tax Credit refund for your small business in the beauty and wellness space. We hope to hear from you soon!