What are 10 Surprising Benefits of the ERTC?
If your business is like most in the worldwide economy, the COVID-19 pandemic hit you hard. One bright financial spot is the ERTC (Employee Reduction Tax Credit), also known as the ERC (Employee Retention Credit). Designed to help companies retain their staff during the pandemic, the ERTC allows employers meeting certain criteria to apply for a refundable tax credit.
While tax relief may sound good, you might not have thought much about the specific ERTC advantages for your company. The tax credit team at Dayes Law Firm has compiled a list of the many business benefits of the ERTC.
1. Provides Tax Relief
The idea of financial relief from a tax credit may not surprise you, but you might not know exactly how much you stand to gain. Eligible businesses may qualify for up to $7,000 per employee per quarter for 2021 and $5,000 per employee per quarter for 2020.
2. Helps You Keep Experienced Employees
In a tight labor market, employees can choose to work for any number of employers. Even during economic downturns, workers with extensive experience and in-demand skills may have other employment options. One of the advantages of the ERTC program is that it can allow you to allocate funds with a focus on retaining top talent.
3. Lowers Your Turnover Rate
Whether a senior executive retires early or a new employee quits after just a few weeks, turnover is a constant management challenge for every business. Your ERTC credit gives you the financial resources to streamline your processes, addressing rushed hiring, poor onboarding experiences, limited benefits, low workplace morale, or any other weak spot.
4. Reduces Hiring and Training Costs
Every time an employee leaves, you need to start all over. That includes investing time and money in placing ads, reviewing applications, interviewing candidates, and training new hires. The financial benefits of the ERTC can allow you to focus on keeping the workers you have, which saves you resources in finding and training new ones.
5. Lifts Employee Morale
High turnover costs more than just money: it can also damage employee morale. One of the positive impacts of ERTC is an improved corporate culture. In addition to helping you keep your staff, it can allow you to dedicate resources toward a better employee experience, including offering better benefits, additional training opportunities, or more corporate events.
6. Raises Workplace Productivity
Employee Retention Tax Credit benefits can help you improve workplace morale, which often pays off in higher productivity and better work quality. When they don’t have to spend time training new employees, current staff members operate at maximum efficiency.
7. Helps Attract New Talent
No matter how great your current business culture is, you’ll eventually need to hire new staff members. Financial support from the ERTC can enable you to improve starting salaries and benefits packages, and reduce onboarding experiences, which can help you attract new employees.
8. Betters the Customer Experience
Happy, productive, and experienced employees make your workplace run more smoothly. This is good for both your internal corporate environment and your external customer experience. Your business may see the benefits in terms of improved customer loyalty and more word-of-mouth advertising.
9. Increases Cash Flow
ERTC tax incentives can provide your business with up to $28,000 per employee (for 2021), which can give you a much-needed influx of cash during difficult financial times.
10. Improves the Bottom Line
No matter how you look at it — lowered training costs, improved productivity, or happier customers — the ERTC provides resources to improve your company’s bottom line.
Dayes Law Firm: Your ERTC Tax Professionals
At Dayes Law Firm, we’re committed to helping businesses like yours accurately claim the ERTC and explore all the ERTC uses that could benefit their companies. We can help you apply for the ERTC and maximize your credits. Contact Dayes Law Firm today at 800.503.2000 to request your free consultation.