How to Wisely Invest the ERTC for Long-Term Growth

October 23, 2023
Dayes Law Firm

If you’ve taken advantage of the Employee Retention Tax Credit, or ERTC, you may wonder what to do with your windfall. The IRS intended the ERTC to help businesses that struggled during the pandemic, but it doesn’t limit what you can do with the money.

Below, discover some ERTC investing tips and ideas to spend your credit wisely.

Hire More Employees

Many businesses were forced to let employees go during the pandemic because they couldn’t afford to keep paying them. Recruiting, interviewing, hiring, and onboarding employees is an expensive journey, and that’s where the ERTC can be so helpful.

You can use the money to help you find top-tier talent for your company. And if you don’t have the know-how to track down would-be employees yourself, consider hiring a headhunter to find some for you.

Beef Up Your Benefits Program

If employees have left your business because of your lackluster benefits program, now is your chance to make it shine. Adding perks to your program is a smart way to attract desirable candidates to your company.

Consider the following benefits:

  • Free or discounted childcare
  • Fitness memberships
  • Extra paid vacations
  • Free counseling sessions

Wipe Out Business Debt

You may be looking for ERTC investing tips, but growing your business is hard when buried in debt. If you’re struggling under the weight of loans and credit card bills, why not use the money from your credit to pay them off?

Launch a New Product

Do you have big dreams for a product that could take your company to the next level? The ERTC could help make them a reality. You can use the money to invest in research, development, testing, packaging, and anything else you need to bring your new product to market.

Invest in New Office Space

Is your office starting to feel a little too cozy? Hiring new employees is a great sign your business is on the upswing, but you need enough space for them to do their work comfortably. Have so many customers that they can’t find a place to sit or stand? It may be time to find more space.

How Much Is the ERTC Worth, and Do You Qualify?

If you’re eligible for the credit, you may claim up to:

  • $5,000 per employee for 2020
  • $7,000 per employee per quarter for 2021

To qualify, you must have either:

  • Experienced a significant decline in gross receipts (that means a drop of at least 20% for 2021 and 80% for 2020)
  • Had to shut down either partially or fully in response to a government order

To claim the credit, eligible employers can file Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund

Let Dayes Law Firm Help You Claim the ERTC

Now that you’ve learned a few ERTC investing tips, could you use some help claiming the ERTC? If so, reach out to Dayes Law Firm at (866) 567-4510 today. We’ll review your situation and tell you whether you qualify. If you do, you can already start planning how to use that financial boost wisely to ensure your business thrives.