ERC for Hotels and Motels

IRSplus Helps Hotels and Motels Maximize their Employee Retention Creditы

In March 2020, travel came to an abrupt halt. Hotels and motels were among many U.S. businesses that were heavily impacted by the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) contains an important provision called the Employee Retention Credit (ERC). It allows businesses that operated during COVID-19 to recover up to $26,000 per worker.

At IRSplus, we help hotels and motels nationwide secure the maximum Employee Retention Credit (ERC)—guaranteed. Our team is solely focused on the ERC. If you have any questions or concerns about applying for the ERC as a hotel or motel, we can help. Contact us at 1-888-210-8870 to find out more about how our ERC specialists can help.

What Hotels/Motels Should Know About the Employee Retention Credit (ERC)

The Employee Retention Credit (ERC) is a refundable tax credit for employers equal to a certain percentage of wages paid to certain workers during periods of the COVID-19 pandemic. It is one of the most important—and least appreciated—aspects of the federal government’s economic response to the crisis. Every business that qualifies should file for the ERC—that includes every hotel and motel nationwide. Here are four of the most important things that hotel and motel owners should know about the ERC:

1. A Fully-Refundable Tax Credit for Up to Six Quarters: The Employee Retention Credit covers the final three quarters of 2020 and the first three quarters of 2021. Hotels and motels can apply for all six quarters.
2. The Greatest Benefit is $26,000 Per Employee: Your company’s ERC refund will depend on many different factors. The maximum possible benefit for each employee is $26,000. We have helped many companies secure a six figure ERC tax refund.
3. Hotel/Motels Can Obtain for the ERC and the PPP: Did your hotel or motel already get approved for PPP funds? You can and should still claim your ERC benefits. These are separate federal economic programs.
4. Businesses Must Apply to Get the ERC: Hotels and motels cannot wait for the government to send them a check for the ERC automatically. You must apply for the Employee Retention Credit to get the full and proper tax refund.

Qualifying for the ERC as a Hotel or Motel Business

The entire travel economy came to a screeching halt in the United States in March of 2020. It affected hotels and motels especially hard. According to data from the American Hotel & Lodging Association (AHLA), virtually every hotel nationwide saw major vacancy drops. Many motels and hotels have still not recovered to pre-COVID booking rates. The Employee Retention Credit is an important economic tool for the industry. You may be wondering: How does a hotel or motel qualify for the ERC? There are two different ways that hotel businesses and motel businesses can qualify for the ERC:

1. Your business must have seen a substantial revenue loss; or
2. Your business must have been subject to a government order restriction causing a partial suspension such as below.

Every Hotel and Motel Can Qualify for the ERC Due to a Government Shutdown

While virtually every hotel/motel nationwide saw revenue declines due to COVID-19, no revenue decline is required to qualify for the ERC. Every hotel and motel can file for benefits based on a partial or full government shutdown. Examples include:

• Cleaning/sanitizing requirements;
• Social distancing and capacity rules;
• Outright government shutdowns, including no-travel orders.
• Supply chain disruptions.

Hospitality Businesses Still Have Time to Apply for the ERC for Both 2020 and 2021

As explained above, the ERC is available for six quarters in total—the final three quarters of 2020 and the first three quarters of 2021. Does that mean you missed your chance to qualify for the tax refund? The answer is no. There is still time to apply for the Employee Retention Credit for hotels and motels. Federal law holds that there is a three year window to submit revised documentation to get your ERC. Hotels and motels can still claim the ERC for both 2020 and 2021. We can help.

How Our ERC Specialists Help Hotels & Motels Maximize their Benefits

We are exclusively focused on helping clients navigate the ERC application process so that they can maximize their tax refund. The ERC is a critically important form of financial support for hotels and motels that were operating in 2020 and 2021, during the most challenging days of the COVID-19 pandemic. We have the skills and experience to serve hospitality and tourism industry businesses nationwide. With IRSplus, hotels and motels get:

• A Free and Comprehensive Assessment of Your ERC: Do you have questions about applying for the ERC? We are more than ready to help. Our team provides free and comprehensive case evaluations to hotels and motels. There are no upfront fees.
• Calculation of Your Full Tax Refund for Every Quarter: Calculating the ERC is complicated. We will make sure that you know exactly how much your hotel or motel qualifies to receive. Our team has a proprietary system to calculate the ERC for all quarters.
• Support With the Entire Application Process: Taxes are complicated—and the ERC is no exception. We have deep experience with the tax credit. Our ERC specialists for hotels and motels will guide you through every step of the application process.
• Up to Six Checks from the IRS: Our goal is to get your business the maximum tax refund without any unnecessary delay. By filing within 7 days, We help our clients get their payment as quickly as possible—the ERC is up to six checks from the federal government.

We Help Hotels & Motels Apply for the ERC Nationwide

At IRSplus, we are focused exclusively on helping our clients maximize their tax credit for employee retention. If you have any specific questions or concerns about applying for the ERC as a hotel, motel, or any other type of hospitality business, we are here to help. Call us now at 1-888-210-8870 or contact us online to set up a confidential initial appointment with an ERC specialist. We help hotels and motels secure the maximum ERC tax credit nationwide.