The ERTC as a Financial Lifeline for Struggling Businesses
It’s no secret that the COVID-19 pandemic was rough on businesses. Many had to at least temporarily shut down due to the worldwide health emergency, and small businesses especially may still be having trouble bouncing back even as many pandemic-related restrictions have long since lifted.
What some business owners may not know is that the Employee Retention Tax Credit could act as a real financial lifeline for struggling businesses that still need some economic aid to survive, even as the worst years of the pandemic seem to be over. If your business qualifies to apply for the tax credit, it could really be a boon to your company and employees.
Employee Retention Tax Credit
The Employee Retention Tax Credit, sometimes referred to as the ERC or ERTC, is a refundable payroll tax credit many businesses can claim on qualified wages paid to their employees in 2020 and 2021. Business owners that kept staff on payroll despite major financial setbacks at the height of the COVID-19 pandemic during those years may be eligible to apply for the credit.
If your business experienced a full or partial shutdown of operations due to a governmental order related to COVID-19, or if it encountered a decline in gross receipts in 2020 or 2021 as compared to the same quarter in 2019, the ERTC may be available to you.
The main reason many employers have applied for the credit is because it could result in an influx of cash for their business to the tune of thousands of dollars!
For example, for tax year 2020, you could potentially claim a maximum ERTC refund of $10,000 per employee at a rate of 50 percent, or $5,000 per employee for the entire year. Then, for 2021, the ERTC can be applied to 70 percent of qualifying wages of up to $10,000 per quarter, for a total of $7,000 per quarter.
In total, you could potentially claim up to $26,000 per employee. That’s not an insignificant amount of money, especially for struggling businesses that could use a financial lifeline in the wake of the continuing effects of COVID-19.
Although the Employee Retention Tax Credit was designed to help small and medium-sized businesses keep employees on payroll during the economic difficulties caused by the COVID-19 pandemic, even now, it can help businesses that still need some assistance bouncing back. An ERTC refund could mean the difference between hiring new employees or not, or helping your business pay off debts incurred during the pandemic while fighting to stay open.
Assistance with ERTC Applications
If the ERTC sounds like something your business would benefit from, Dayes Law Firm would love to help. Alongside our partners, we have already helped many businesses file for over $250 million in Employee Retention Tax Credit claims so far, and our team fields new cases for ERTC application assistance on a consistent basis.
Our ERTC team can offer you and your company a free, no-obligation consultation to discuss your unique situation and the needs of your business. Please feel free to fill out the form on this page or give us a call at 602-888-2900 to speak with one of our representatives and learn more.
There is no risk in contacting our firm for a free evaluation. You are under no obligation to work with our firm after the initial consultation, but we think we can prove why we are the best choice to help your business claim this crucial financial lifeline before the ERTC program ends. Give us a call to find out more today!