How Can the ERTC Boost a Business’s Competitiveness?

Although some businesses have bounced back after the financial turmoil resulting from COVID-19 in 2020 and 2021, others are still struggling. And let’s be realistic – most businesses could use a little extra cash. The Employee Retention Tax Credit (ERTC/ERC) could result in you and your business getting an impressive ERTC refund, which you could choose to use strategically to boost your business’s competitiveness.

Using the ERTC Strategically to Boost Competitiveness 

Eligible employers can still retroactively file for the ERTC through April 2024 for wages they paid in 2020, or through April 2025 for wages they paid in the first three quarters of 2021. Businesses may be able to claim a refund of up to $26,000 per employee – $5,000 per employee for tax year 2020 and $7,000 per employee per quarter for the first three quarters of 2021.

That’s obviously a lot of money your business could claim from the program, and depending on the number of employees you claim for the ERTC, the maximum amount you are eligible to receive could prove to be a total game-changer for your company. So, how can you use these funds strategically to boost your business’s competitiveness? 

One way you can use the ERTC refund money is to continue to pay your employees competitive wages or offer them more in salary and benefits. The work of happier, more motivated, more secure staff members will be reflected in the products and services your company produces and make you better able to compete in your industry. 

You could also use the money you claim from the Employee Retention Tax Credit to upgrade equipment, which may result in a higher number of products you can produce. Your company could also expand into new product areas to better compete with similar companies, or even grow into entirely new markets. 

Investing in new or better technology could also boost the competitiveness of your business. Software enhancements or stronger digital tools can help you improve productivity at your company and put you in an even better position to compete against others in your industry. 

Another area in which you might be able to invest a good portion of your ERTC refund money to compete more strongly in your field is marketing. Putting more money towards current marketing strategies, or funding completely new marketing teams and campaigns, can result in increased visibility for your business and, hopefully, new clients. 

Getting ERTC Application Assistance 

Even if you’ve decided to pursue claiming the Employee Retention Tax Credit, deciding to claim it and actually going through with the application process are two different things. The process may seem daunting to you, especially if you already have a lot going on as a business owner. 

Fortunately, a team of trusted, experienced tax professionals can help you apply for the ERTC. The team at Dayes Law Firm, for instance, has already helped hundreds of business owners file for the ERTC, and we’re assisting new businesses all the time. We would be honored to help you claim this important tax credit for your business. 

Feel free to contact us to learn more about your eligibility for the ERTC and to ask any questions you may have about the process. We offer a free, no-obligation consultation to any business owners interested in our services. Please call (800) 503-2000 to learn more today!