What Role Does the ERTC Play in Sustainability Efforts?
Our world is ever-changing. Environmental concerns are on the rise; countless people worry about how carbon emissions may affect us, now and in the future. As a business owner, you have a responsibility to try and mitigate your carbon footprint.
The government offers many incentives to businesses willing to engage in sustainability efforts. The Employee Retention Tax Credit (ERTC) isn’t usually counted among them, but you can use it to improve your business’s sustainability and corporate responsibility programs. Learn more about the ERTC and corporate responsibility and discover how to pursue more sustainable business operations.
What Is the ERTC?
The ERTC is a refundable tax credit based on payroll taxes. Essentially, businesses can claim the credit if they experienced a full or partial shutdown due to governmental orders or if their gross receipts declined by a certain percentage (50% in 2020 or 20% for the first three quarters of 2021).
Eligible employers may claim up to 50% of eligible wages per employee for 2020 or up to 70% of eligible wages in 2021. To apply, you must amend your business’s income tax return by filing Form 941-X (Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund).
How the ERTC Can Help Your Business’s Sustainability Efforts
The ERTC was an incentive to encourage businesses to retain employees during the COVID-19 pandemic. You can use this money to support just about any area of your business, including sustainability and corporate responsibility efforts. Understanding how the ERTC and corporate responsibility interconnect can help improve your company and reduce its environmental impact.
Purchase More Energy-Efficient Equipment
The less energy you use, the less of an impact you’ll have on the environment. The ERTC allows you to purchase more energy-efficient equipment, helping you to enjoy more efficient work with less wasted energy.
Build a Sustainability Program
If you want to pursue a more sustainable company, you’ll need to have a solid program in place. You could use your ERTC credit to fund and plan a sustainability program, allowing you to invest in new technologies, employee education, and more.
Begin the Transition Away From Fossil Fuels
Burning fossil fuels releases a significant amount of carbon emissions. Unfortunately, many businesses still rely on fossil fuels to operate.
Transitioning away from fossil fuels can be an expensive endeavor. With funds from the ERTC, however, it might be more manageable for your company. Consider looking into electrification options and work closely with industry professionals to determine what might suit your company.
Why Is Sustainability Important?
Companies can have a major impact on the environment. Many operations produce excessive waste, which can pollute the air, water, and land. Unfortunately, this can significantly impact the living conditions of animals and people alike.
Sustainability practices have become an increasing concern for society at large. Companies that pursue sustainability efforts will not only help the environment but also improve their reputations. In addition, they may be more likely to retain employees, receive tax incentives, and reduce energy expenses.
Contact Dayes Law Firm to Learn More
Proper sustainability practices are critical, and the ERTC can help you put these measures in place. By taking advantage of this tax credit, you can fund a sustainability program, pursue more energy-efficient technology, and otherwise improve your business.
To learn more about the ERTC and corporate responsibility, contact Dayes Law Firm. We have extensive knowledge about the ERTC and commit ourselves to assisting our clients. Call 866-875-1005 to speak with an attorney today!