Economic Relief for Hard-Hit Industries:The Employee Retention Tax Credit

by | Dec 4, 2022 | Blog | 0 comments

The COVID-19 pandemic had a devastating effect on businesses across the US. And while the crisis created stress and uncertainty in every sector, some industries were hit harder than others.

To provide relief, the Employee Retention Credit (ERC) was created as part of the CARES Act of March 2020 to support businesses struggling with lost revenue. While many companies have already taken advantage of the opportunities available, there are still financial benefits to be had.

Here are a few examples of companies in different industries that may still qualify for the ERC:

  • Law firms: The legal community was significantly impacted by the pandemic. Law firms were forced to send their attorneys home to quarantine, and courts across the country either fully closed or partially shut down due to government orders. Many law firms are still feeling the effects of the loss of revenue.
  • Real estate management companies: The financial consequences of the pandemic have been severe for the property management industry. The increased unemployment rates for renters and the federal government’s eviction moratorium created a major shortfall in rent collection for landlords.
  • Non-profit agencies: Non-profits were also hit hard by the pandemic, with fundraisers limited due to mass gathering ordinances and room capacity limitations. As a result of these restrictions, many non-profits saw a 7.2% decrease in total donors.
  • Hospitality: State-mandated lockdowns, travel restrictions, and health concerns set the hospitality industry back 10 years. Hotels, restaurants, and other establishments in the industry have lost nearly 4 million jobs and a combined $15 billion in revenue in the last two years. And they’re not expected to fully recover until 2024.

A growing number of Americans are ready and eager to transition toward normalcy. But the economic effects of the pandemic still linger for many business owners. With so many industries affected, it’s critical to understand the different ways businesses can qualify for and benefit from the ERC.

At Miami CFO, we have helped numerous business owners collect millions of dollars, and we can do the same for you. Use this link to schedule a meeting: https://calendly.com/miami-cfo.