I wanted to reach out and make sure you have access to this information. The Employee Retention Credits for Businesses Program provides companies with up to $5,000 per employee for 2020 and up to $7,000 per employee per quarter in 2021 excluding Q4. This Credit only applies to companies that have employees on payroll.
Businesses can qualify for the Employee Retention Credits by using the gross receipts test to see if there was a revenue reduction, there is another test where the clients may qualify – the Partial Suspension of Operations Due to COVID-19 Governmental Orders test.
Here are a few examples of companies in different industries that meet the Partial Suspension of Operations test for the Employee Retention Credit for Businesses:
- Construction Firms
– Project locations shut down due to government orders.
– Limitations on site visits due to cleaning, maintenance etc.
– Governmental agencies fully or partially shut down for construction permits. - Real Estate Management
– Conviction moratorium.
– No late penalties on rent. - Law Firms
– Courts fully or partially shut down due to government orders.
– Litigation services requested. - Medical and Dental Practices
– Limitations on elective procedures.
– Room Capacity and spacing limitations due to social distancing mandates. - Non-profit Operations
– Fundraisers limited due to mass gathering ordinances and room capacity limitations.
– Social distancing mandates effecting classroom instruction, boarding, extra-curricular activities, sports field trips, physical education, etc. - Manufacturing
– Disruptions in supply chains that have slowed or disrupted the manufacturing process.
We Partner with a tax consulting firm that specializes in obtaining these refunds. Please email me at rkondler@kondlercpa.com if you are interested. I can facilitate an introductory meeting to see if your business qualifies for this credit program.
