Knowledge Base
The Employee Retention Credit remains one of the best opportunities for business owners to kick-start their recovery from the pandemic, however, some may still be a bit confused as to what qualifies and what doesn’t. Here’s a helpful checklist.
The overarching theme for businesses to focus on is how the coronavirus pandemic impacted our economy as a whole, so even if your business grew or was deemed ‘essential’ during the pandemic, there are multiple facets of your business to consider before disqualifying yourself.
Below, we’ve tried to give you several examples of where the impact may have been felt within your business and how you may have qualified for the credit without even knowing it.
So if your business had 100 or fewer full-time employees in 2019, you would qualify for ERTC in 2020 and if you had 500 or fewer in 2019, you may qualify for the following reasons in 2021:
- Full shutdowns
- Partial shutdowns
- Interrupted operations
- Supply chain interruptions
- Inability to access equipment
- Limited capacity to operate
- Inability to work with your vendors
- Reduction in services or goods offered to your customers
- Cut down in your hours of operation
- Shifting hours to increase sanitation of your facility
- Decrease in revenue in 2020 or 2021 compared to 2019
Whether you are a medical services company whose revenues dropped over 60% in one quarter or a small restaurant whose revenues were disrupted by limited dining space, each would have a case for compensation to varying degrees.
It’s been a challenging enough couple of years for everyone, without leaving money on the table that could help kickstart your recovery, so if you would like more information, please contact our resident CPA and tax expert Kevin Scott, kevin@apluspayroll.com
We hope this will help. Please know your growth and success remains a big part of why we do what we do.