How the ERTC Supports Small Business Growth and Recovery
There are many ways the Employee Retention Tax Credit (ERTC/ERC) can benefit a small business. This government program has already been claimed by many businesses, and there’s limited time to put in an application if your company qualifies to claim it.
To help employers better understand the benefits of the ERTC, here are a few ways the ERTC supports small business growth and recovery in the aftermath of the early years of the COVID-19 pandemic.
What is the ERTC?
The ERTC was designed to give relief to businesses that kept their employees on staff during the height of the COVID-19 pandemic. It is a fully refundable payroll tax credit that businesses can claim on qualified wages paid to their employees and is available to claim for quarterly payroll tax filings from 2020 and 2021.
If your business experienced either a full or partial suspension of operations during any quarter of 2020 and 2021 as a result of a governmental order limiting certain operations, and/or if it experienced a significant decline in gross receipts when compared to the same quarter from the year 2019, it could qualify to claim the Employee Retention Tax Credit.
The maximum amount for the ERTC per employee is $7,000 for each employee per quarter in 2021, potentially totaling $21,000. That’s in addition to the maximum credit of $5,000 per employee in 2020, which means your business could potentially claim up to $26,000 per employee as an IRS tax credit.
That sort of influx of cash could be a total game-changer for small business growth and recovery. At the very least, ERTC funds could help your business in the short term by allowing you to pay off debts you may have taken on during the first months of the pandemic to stay afloat.
In the long term, the ERTC could help your business expand by allowing you to invest in more employees or more projects. Reinvesting the money back into your business to buy updated equipment or fund new product lines could make all the difference when it comes to seeing your company thrive for years to come.
The money you could receive thanks to the ERTC program could allow you to reward employees who stuck around during the tough times with raises or bonuses. Or, you could improve your benefits package as both a “thank you” to current employees as well as to attract new, skilled talent to your team to invest in your workforce’s future.
How the Team at Dayes Law Firm Can Help
If you’ve decided you’re interested in applying for the ERTC to see how it could help you invest in the growth and recovery of your small business, Dayes Law Firm can help.
The Dayes Law Firm team and the partners we work with have already helped a number of businesses with filing for over $250 million in Employee Retention Tax Credit claims so far. In fact, our clients have already received more than $25 million in funds for ERTC claims.
We can help walk you through the process of applying for the ERTC and answer any questions you may have about the program or how your business may benefit from the ERTC. Dayes Law Firm offers a free, no-obligation consultation to potential clients, so please feel free to contact us by giving us a call today at (800) 503-2000 to learn more.