COVID Changed The World
The global pandemic changed everything. The complex, interconnected network of international businesses was transformed in mere weeks and months, in ways that we’re still trying to understand. Businesses, governments, and consumers changed their behaviors in predictable and unpredictable ways. The supply chain*—the lifeblood of moving products and services across the globe and to the end-users, experienced an upheaval not seen since WWII. And, we’re at the beginning of the supply side shake out.
No Industry Was Spared
There wasn’t one industry that was unscathed by significant supply chain disruptions. The auto industry, the food and dining industry, the hospitality industry, retailers large and small, the entertainment and sports industry, the fitness industry, the construction industry**, and more, we’re all impacted by COVID and the resulting supply chain disruptions.
Supply Side Disruptions
One of the other obvious impacts of COVID has been the ensuing supply chain disruptions. These disruptions led to many companies having to make the tough decision of furloughing, laying off, or firing employees. In addition, consumer demand for many items and services waned or disappeared altogether. Many American consumers delayed the purchase of a home, car, durables and stopped spending on many things. That lack of demand caused many employers to halt the hiring of new employees and to shed workers. In some cases, demand increased due to COVID, especially online retail purchases and food delivery.
Relief Is Available
The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains a business relief provision known as the Employee Retention Credit (ERC), a refundable payroll tax credit for “qualified wages” paid to retained full-time employees from March 13, 2020, to Dec. 31, 2021. The purpose of the ERC was to encourage employers to keep employees on the payroll, even if they were not working during the covered, COVID-19, period. If COVID, the slowdown in manufacturing, and supply-side issues caused your business to lay off employees, you may very well be eligible for a generous ERC tax credit from the IRS.
Is Your Business Eligible?
If you had to lay off employees due to COVID and the related supply chain and lack of demand issues, you should check with your AccuPay HCM professional. We know the ERC and how to help businesses of all kinds determine eligibility, assemble the necessary paperwork, and submit it to the IRS in an expedited fashion. If your business was negatively impacted, these valuable tax credits can help your business bounce back and maintain profitability.
We have helped clients determine eligibility, and receive tax credits as high as $300,000. Could your business be one of those that are eligible for this valuable credit? Find out today at https://accupayhcm.com/erc/ or give us a call at 1-800-354-0087