Business owners are familiar with stimulus incentives offered by the U.S. Federal government during the COVID-19 health emergency. The Paycheck Protection Program (PPP) helped American business owners save jobs, and remain staffed during the difficulties imposed by the global pandemic. But there is one tax credit that is not as well known. It’s called the ERTC.
The Employee Retention Tax Credit can provide a tax benefit of over $20,000 per employee, depending on eligibility. The incentive was provided through the CARE Act, and allocated approximately $80 billion in tax credits for businesses impacted by COVID-19.
How Did COVID-19 Impact the American Cannabis Industry?
The cannabis industry saw record sales in 2020 and 2021. In fact, medical and adult-use dispensaries on average, earned over $17 billion in 2020 alone. But the pandemic also caused many MSOs and cannabis SMEs to lose revenue.
At the start of the COVID-19 pandemic, medical cannabis dispensaries were designated as an ‘essential service’. Along with other important retailers and providers who delivered medical and health services that patients relied on.
Unfortunately, adult-use (recreational) dispensaries did not share the same designation. Recreational dispensaries were not considered an ‘essential service’ and that forced repeated closures of retailers to comply with federal and state requirements.
A new study conducted by the National Cannabis Industry Association (NCIA) reported the findings of a survey provided to 396 American business operators. The study revealed that 37% of cannabis businesses are operational, but not at a profit, according to the “Whitney Economics U.S. Cannabis Business Conditions Survey”. The effects of COVID-19 are still being felt.
The American cannabis industry (like other sectors) is still recovering from economic hardship caused by the global pandemic. In 2022, for example, California reported a reduction in sales to $1.17 billion in the first quarter of this year. Despite remaining the largest legalized cannabis market in the world, according to a recent report from the CDTFA.
If you are a business owner, whether you are an SME or a corporation, your business may qualify for the Employee Retention Tax Credit (ERTC). And we would like to share five reasons why you should consider applying for it.
1. The ERTC Rewards Businesses Who Kept Americans Employed During the Pandemic
The first impact from COVID-19 was seen in skyrocketing unemployment rates. As businesses saw revenues contract, cost cutting measures were immediate. That included reduced hours, and in some cases, employee layoffs.
Recognizing that massive job loss would be an economic blow, lawmakers moved quickly to create a tax incentive to help businesses. Specifically, U.S. based entities that maintained hourly and salaried staff. Even when the business saw revenue loss.
While job loss still occurred during the pandemic, one of the reasons America was able to navigate the difficult economic period was because many employers chose to keep staff employed. The Employee Retention Tax Credit benefits those businesses.
2. There Are Many Ways to Qualify for the ERTC
Regardless of the size of your business, you may be eligible to receive the Employee Retention Tax Credit (ERC). It is available to all businesses in the United States, including:
- Small and medium enterprises (SMEs)
- Tax-exempt businesses
- Large corporations
If your business realized a decrease in revenue by more than 20% in 2021 (compared to the previous year or preceding quarterly earnings, you may be eligible for the ERC.
3. If Your Business Received PPP You May Still Be Qualified
Did your business participate in the Paycheck Protection Program? If you received funding through the PPP program, you may still be qualified for the Employee Retention Tax Credit. Our advisors can provide more information.
You took care of your people during the most difficult parts of the global pandemic. Now Congress wants to reward businesses for doing their part. Act now to see if you are eligible to receive the ERC before time runs out.
4. Get an Accurate Calculation of Your Eligible Tax Credit
We won’t waste your time providing a service, if we do not think your business will qualify for the Employee Retention Tax Credit. Our experts have helped small, medium size and corporate entities successfully complete and receive the ERC credit. And you’ll know the amount of your qualifying tax credit before the documentation is submitted to the Internal Revenue Service (IRS).
5. Help is Available to Apply for the Employee Retention Tax Credit
With billions of dollars in tax credits available, it makes sense to explore whether your business can qualify for the ERC incentive. However, there are steps required to provide the right information during the application process.
Our team will help expedite the process. We’ve helped organizations cut through the red tape, and submit an accurate application with favorable results. We do the hard work to make applying for the Employee Retention Tax Credit easy for business owners.
Time is Running Out to Apply for the ERTC
Businesses may still claim for wages paid to employees after March 13, 2020. And for each quarter for the year of 2021 (with the exception of Q4). Businesses may submit amended tax returns that can be filed up to three (3) years after the qualifying quarter ended.
Our team specializes in providing assistance to businesses who would like to apply for the Employee Retention Tax Credit. With expert help, you can optimize and amend previous 2020 and 2021 tax returns. And submit your application for this valuable tax incentive.
We do the discovery, information gathering, accurate reporting and packaging of your application to the Internal Revenue Service (IRS). And you do not pay for our services until you have received your business tax refund.