Transforming Workforce Challenges Into ERTC Advantages

January 4, 2024
Dayes Law Firm

If your business has claimed the ERTC, also called the Employee Retention Tax Credit, you may wonder what to do with the money. This generous credit provides up to $26,000 per employee, and the IRS places no restrictions on what you do with the funds.

Struggling business owners can benefit from quite a few ERTC advantages. Learn more about ERTC incentives and business benefits of the ERTC program below.

Attract New Talent With an Improved Benefits Program

Have you listed job postings for months with barely a nibble? A lackluster benefits program could be to blame for the lack of interest.

One of the advantages of the ERTC tax credit is that you can build out an impressive benefits program that will have strong candidates flocking to you for an interview. Your program could include:

  • Additional PTO
  • Fitness memberships
  • Telehealth visits with doctors and nurses
  • On-site daycare
  • Meal stipends
  • Bonuses for referring potential hires

Improve Morale by Rewarding Your Employees

Do your employees feel underappreciated and overworked? Consider using the ERTC to reward them.

Your employees will be pleasantly surprised by seeing a nice bonus attached to their next paycheck. You could also reward employees with parties, gift cards, and prizes.

Build Your Cash Reserves

It never hurts to have extra cash on hand for a rainy day. If a vital piece of equipment fails or you’re hit with an unexpected bill, you’ll breathe a sigh of relief knowing that there’s money available to pay for it.

Replace Aging Equipment

Business equipment can cost thousands, so many owners are reluctant to replace outdated items even though they’d benefit from an upgrade. With money from the ERTC, you can buy new equipment that’s far more reliable.

Invest in More Office Space

Do your employees complain about their cramped cubicles? Don’t have enough space in your waiting area or dining room? It may be time to consider moving to a bigger location with help from the ERTC.

Every business owner strives for growth, but the bigger you become, the more space you’ll need. Thanks to ERTC advantages, you could even consider opening another location across town or in a neighboring state. Doing so brings many exciting opportunities, such as the possibility of franchising your business to others.

Pay Off Debts

It’s normal for businesses to have debts, but if you’ve maxed out your credit cards and collection agencies are knocking at the door, your company could end up in real trouble. Talk to a financial planner or accountant to learn how to use the ERTC to pay off your debts.

Launch a New Product

Have you always dreamed of launching a new product but lacked the capital to do so? If you’ve claimed the ERTC, now’s your chance. You can use the credit to invest in research, design, testing, advertising, and everything else needed to bring your product to market.

How to Claim the ERTC

If you’re excited about all of these ERTC advantages but haven’t claimed your credit yet, you can do so with Form 941-X: Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund.

You must meet one of these requirements to qualify:

  • A significant drop in gross receipts (at least 20% for 2021 and at least 50% for 2020)
  • Your business partially or fully closed because of a government order

Call Dayes Law Firm to Claim the ERTC

Want to learn more about ERTC advantages or find out whether you qualify for the credit? Call Dayes Law Firm at (800) 503-2000 for a free consultation with our Employee Retention Tax Credit pros.