Can your essential business get the employee retention tax credit? (yes!)
Can an essential business get the employee retention tax credit? Well, at first glance, it would seem like, no. I mean, after all, the IRS guidelines say an essential business is not qualified. Upon further investigation of those guidelines though, we see there’s actually a lot of qualifiers for an essential business that may allow it to still take advantage of the employee retention tax credit.
According to the IRS, even if all of your operations were allowed to continue as an essential business, but were subject to modifications; then your business may qualify.
Here are the types of modifications that apply to an essential business that can still qualify for ERTC credit
Did state mandates for your essential business include?
- Limited capacity
- Limited occupancy
- Contactless pick-up
- Contactless drop-off
- Enforcement of social-distancing
- Enhanced cleaning measures
- More stringent sanitization guidelines
- Many more based on region
Upon review of the effect, these mandates have on businesses we often find that the effect is more than nominal. In fact, they actually have a pretty significant impact on the business.
Were you forced to significantly change the way you run your business? If so, you qualify.
If you operate an essential business in your area and were forced to comply with government mandates that limited capacity/occupancy or otherwise changed the way you do business; then you might be eligible for these credits. The IRS has recognized that even if you were open, even if your revenues increased, these mandates still significantly altered the way you interacted with customers and operated your business. With this in mind, there are exemptions to allow you to use these credits!
Don’t miss out when you could just reach out!
Sorting through all exemptions to figure out if you could qualify can be a pain! With vague wording and often seemingly conflicting answers, you will often find it more trouble than it is worth and move on before finding the answer for yourself.
Don’t let this keep you from taking advantage of the employee retention tax credit when all you have to do is reach out to me and I’ll quickly help you determine if you qualify.
For a layman’s guide to the employee retention tax credit check out our roadmap below:
Have questions that aren’t answered in the article or video? Book time with Brad today by clicking here!