There is still access to a considerable amount of money even if you applied for and received the PPP loan. Changes in the second spending bill passed in December expanded the scope and size of the Employee Retention Credits Program.
While all industries have been affected by the pandemic, those forced to shut down by the government for an extended period were inevitably affected the most. That includes restaurant groups, individual restaurants, hotels, and other hospitality-related businesses.
If you own such a business or have a relationship with someone who does we can help them access additional funds through the Employee Retention Credits (ERC) Program.
Unlike the PPP, which looked to aggregate business groups and capped relief at $2 million, the ERC is based on a business’ tax ID number. What does this mean? Here’s an example:• A restaurant that employs 20 people will see a credit of $100,000 ($5000 per employee)• A restaurant group with 15 restaurants and 20 employees per restaurant will see a $1.5 million credit ($5000 per employee)• Starting January 1, 2021, the government increased the credit from $5,000 to $7,000 per qualifying employee for the first two quarters of 2021.
The expanded ERC program assists companies with a SIC code 72, meaning those whose business model primarily involves providing services – to automatically qualify for these credits. Businesses experiencing a drop in revenue of at least 50% compared to the same quarter in 2019 also qualify.
The not so good news is that it’s not a simple process. It’s slow and arduous and not available to file electronically. The application has to be submitted by paper to the IRS. The good news is that we can complete the process for you from beginning to end.
Let’s set a time for when I can explain the steps and get all the information I need to get started. Use this link to schedule a meeting https://calendly.com/miami-cfo.