Los Angeles, California, Jan. 19, 2023 (GLOBE NEWSWIRE) —
SAN FRANCISCO, CALIFORNIA – After all the difficulties experienced by restaurants and similar businesses during the season of the COVID epidemic back in 2020 and 2021 due to the lockdown and many business restrictions, the Employee registration debt (ERC) program offers a way for almost all restaurants to get some cash through a lot of tax refunds says Disaster Advisers (DLA). The ERC was designed to encourage small businesses to keep their employees on the payroll despite the restrictions, especially for restaurants and other food establishments that were ordered to close in whole or in part due to food restrictions in inside the disease. For restaurants, bars, restaurants, and other similar businesses, almost all of them can qualify for the ERC tax credit because they all experienced mandatory closures, in whole or in part, even if they had a Paycheck Protection Program (PPP) loan forgiven.
Employer Guarantees provide additional financial relief for restaurants, bars, cafes, and other small businesses. Image Details: 350jb / 123rf.
To give restaurant owners and other business owners an idea of how much they can get from the tax credit program mentioned above, for 2020, they can claim $5,000 for employees W -2 each on their salary at that time. For 2021, they can claim $7,000 for each quarter for the first three quarters of 2021. This means, for 2021, eligible businesses can receive $21,000. If you add the $5,000 for 2020, the total is $26,000 for all employees on their payroll during the specific period, which is a large amount when multiplied by the number of employees in the business. However, it is important to understand the various limitations, which is why it is good to have the help of an ERC professional in determining the eligibility and then filing the revised 941-X.
“The rules and regulations for the ERC tax credit have changed many times, so they can be confusing. for employee tax withholding credit. The reason for this confusion is that there are many changes in the laws and regulations. And, only tax and financial professionals like us who choose to focus on the ERC program can provide accurate and up-to-date advice,” said Marty Stewart, Chief Planning Officer (CSO ) and Disaster Advisers (DLA).
There are two ways restaurants and other businesses can qualify for the tax credit. The first way is if they were ordered to close their activities during the period of disease, whether it is a complete closure or a partial closure. This is why all restaurants can qualify for the ERC because almost everyone has experienced legal restrictions that prevent people from going out to eat in restaurants. And it doesn’t matter if their income doesn’t drop much during a particular period or if their income increases. As long as they were forced to close, at least in part, they are eligible for ERC tax refunds during those periods when they were not allowed to operate at 100% capacity.
Another way for a restaurant or business to qualify is if they have suffered a significant drop in their receipts. For the year 2020, the decrease in income is considered significant if it is more than 50 percent compared to the income for the same period in 2019, the year before the disease. For 2021, the decrease in income must be more than 20 percent compared to the same quarter in 2019. It is also important to note that the business must have 100 employees or less in 2020 for those who qualify, and for 2021, they must not exceed 500 workers. For those who have more than 100 employees in 2020 and more than 500 in 2021, it may be a bit difficult, which is why businesses need the help of a professional tax accountant such as Disaster Counselors (DLA) who specialize in knowledge. the ERC / ERTC program.
Fortunately for restaurants and other businesses that need some guidance in determining whether they qualify for the Credit check of restaurant workers or not, as well as in calculating the amount to be made for each employee on their wages during the period of disease, there are groups Tax professionals specialize in understanding the complex laws and regulations that govern these programs. These professionals can also offer assistance in properly filing 941-X revisions to receive tax refunds.
For more information about Disaster Loan Advisors™ (DLA), contact the company here:
Disaster Adviser™ (DLA)
877-463-9777 ext. 3
CONTACT: Lisa Stein