Few industries were more heavily impacted by the COVID-19 pandemic than restaurants. Every restaurant in the country was subject to government restrictions. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) contains a provision—the Employee Retention Credit (ERC)—through which restaurants can qualify for a tax refund. The ERC is important because ERC funds can be three to seven times higher than Paycheck Protection Program (PPP) funds.
At IRSplus, we are exclusively focused on helping businesses qualify for the maximum Employee Retention Credit (ERC). Our team has deep experience working with restaurants nationwide. If you have questions about the ERC application process for restaurants, we are here to help. With us, you will get the maximum ERC—guaranteed. Call us at 1-888-210-8870 or contact us online to set up a confidential appointment with an ERC specialist.
Passed as part of the CARES Act, the Employee Retention Credit (ERC) is a fully refundable tax credit that is available to businesses and organizations that continue to pay wages while being affected by a partial/full government shutdown or a significant revenue decline during 2020 and/or 2021. The ERC is distinct from the Paycheck Protection Program (PPP). Restaurants that filed for PPP benefits can still get an ERC tax refund. For many restaurants, the ERC is actually higher than their PPP funds. It can be as much as seven times higher. Here are three key things to know about the ERC:
How Restaurants Can Qualify for the ERC
The COVID-19 pandemic dramatically changed the restaurant industry. In a matter of a few days, restaurants were forced to transition to take-out only or were shut down entirely. A report from the National Restaurant Association assessed that many restaurants would never make a full recovery to their pre-pandemic state. A study published by the National Library of Medicine estimated that 15 percent of U.S. restaurants went out of business because of the pandemic. Most restaurants suffered losses in the form of reduced revenue or additional expenses.
Every restaurant in the United States can qualify for the ERC. There are actually two different ways to qualify for an ERC tax refund as a restaurant: 1) You can prove a substantial loss in revenue or 2) You can prove your business was subject to a partial or full government shutdown order. Every restaurant was subject to such an order. Examples of restaurant shutdown orders include:
IRSplus has obtained access to the federal, state, and municipal government shutdown orders from their government order specialists. We have the documentation that restaurants need to qualify for the Employee Retention Credit. Every restaurant in the United States was impacted by COVID-19 and should apply for a tax refund.
It is not too late to file for an Employee Retention Credit (ERC) refund for either 2020 or 2021. Even if your restaurant already submitted tax forms for these years, there is still time to file an amended return. By law, there is a three-year lookback period for the ERC. Take advantage of the program as soon as possible. IRSplus helps restaurants throughout the United States submit an amended 941-X form to secure the maximum ERC for both 2020 and 2021.
IRSplus has a proven record of helping businesses obtain the greatest possible Employee Retention Credit tax refund. We have an exclusive focus on the ERC, our team brings true expertise to our clients. Serving businesses throughout the United States, we have helped many restaurants with the ERC application process. Our team is ready to work proactively to maximize your tax refund. Among other things, IRSplus offers non-profits:
At IRSplus, our ERC specialists have the professional expertise that restaurant owners and operators can count on. If you have any specific questions about applying for the Employee Retention Credit as a restaurant, we are more than ready to help. Reach out to us by phone at 1-888-210-8870 or send us a direct message for a strictly confidential initial appointment. We help restaurants secure the maximum ERC benefits nationwide.
