ERTC for Restaurants: Are They Eligible

ERTC Program Restaurants

The COVID-19 pandemic has been difficult for all of us to get through. However, for restaurant business owners like yourself, the stress was made even worse due to the responsibility of paying salaries to the staff.

Thankfully, the US government has established several relief programs specifically for local business owners; nevertheless, these programs’ ever-evolving standards, qualifications, and complexities may throw even the most seasoned professionals into a loop.

Even if you’ve already begun to rebuild your restaurant business and are on the way to progressively leaving the economic shutdown in the rearview mirror, there’s still a chance for you to get some financial support from the government; one such scheme is the Employee Retention Tax Credit, ERTC for short. While the program has officially been terminated, you can still claim the Employee Retention Tax Credit 2022. Thus, don’t let this opportunity slip through your fingers.

Are You Eligible For ERTC? Check Your Status Now!

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What is Employee Retention Tax Credit?

The Employee Retention Tax Credit, ERTC or ERC for short, is a refundable tax credit that you, a business owner, can claim on qualified wages. In other words, ERTC enables you to claim a credit against some employment taxes equivalent to fifty percent of the qualifying salaries earned between March 12, 2020, and January 1, 2021, which can later be used against the taxes in question.

The Employee Retention Tax Credit was first formed as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to assist small and medium-sized businesses, like restaurants, in continuing to pay their working staff throughout the COVID-19 pandemic. The objective was to promote employee retention (the number of current workers who remained with the business).

Restaurants ERTC Program

Over the two-year duration, the Employee Retention Tax Credit program has undergone several modifications. The Infrastructure Investment and Jobs Act changed it such that it will only apply to salaries paid before October 1, 2021, except for recovery businesses, particularly startups, which may hold the earlier deadline of January 1, 2022. The good news is that if your restaurant is qualified for ERTC, you may now receive up to $33,000 per eligible employee for both 2020 and 2021.

Do You Need Pay Back ERTC?

The answer is no. ERTC is a completely refundable tax credit that qualifying businesses, like restaurants, may claim as a reduction in some employment taxes. It is not a loan; therefore, there is no need to pay it back at any point. For the vast majority of taxpayers, the amount of the refundable credit is greater than the amount of payroll taxes paid during the period that generated the credit.

How Does ERTC Work?

The first thing that nearly all business owners need to do is investigate whether or not they qualify for the Employee Retention Credit. This is simpler to say than to do since the eligibility requirements and, ultimately, the credits offered have been subject to modification every year. Even though the program has now officially ended, you can still claim ERTC for your restaurant business in 2022.

ERTC Program Restaurants

Traditionally, once a business owner had determined whether or not they were eligible, the next step was to estimate the ERTC for the relevant pay period, deducting the amount from the payroll tax deposit.

Additionally, the employers needed to submit Form 941 within the first thirty days after each quarter’s closing. Mostly, the credit was more than the tax deposit, which meant that an advance payment could be lodged with Form 7200, and the employer would get the excess as a refund.

Even though the program has ended, your restaurant might still be eligible for the tax credit. According to the regulations, you have up to three years after the program’s termination to apply for any eligible quarters, including quarters for which you were granted a PPP loan. Nevertheless, know that applying for ERTC looks slightly different when filling out after September 30, 2021.

As long as the individual payroll and/or company benefits were not paid using the PPP loan, your restaurant business may now obtain Employee Retention Credit for 2020 and 2021 eligible employee salaries. For 2020, you can access a maximum of $5,000 per qualified employee; however, for 2021 and beyond, this maximum will increase to $7,000 per eligible employee for each calendar quarter.

Applicable Period2020 Q1 2021Q2 2021 Q3 2021Q4 2021
Qualified Wages *$10,000 (50%)$10,000 (70%)$10,000 (70%)
Employer (1) AggregationYesYesYes

How to We Can Help You with the ERTC Process

Believe it or not, claiming the Employee Retention Tax Credit is not as easy as it seems. There is a lot of paperwork involved and eligibility requirements to meet. However, it is way too much money, and it doesn’t make sense to pass it up simply because the procedure is complicated.

Thus, joining hands with an ERTC expert like [Company Name] is your best bet. Here’s how we can help you claim the Employee Retention Credit for your restaurant business in just five simple steps.

  • Complete the Questionnaire: Start with the ten simple questions to begin your ERTC claim.
  • Upload Data: Upload PPP documents, 941 returns, and raw payroll data on EE’s secure portal.
  • Credit Calculation: Get an accurate calculation of the credit you can receive from the IRS.
  • Application Package: Get ERTC expert help filing the 941-X Amended payroll returns.
  • Get Paid from IRS: Receive an email from the IRS with your very own ERTC check.

The Final Cut

So there you have it: all the information about ERTC for restaurants. In the following years, the incentives you get through Employee Retention Credits may be a breakthrough in your restaurant business growth. So what are you waiting for? Get in touch with us today.

From assessment and preparation to filing the claim, we take on everything that comes your way when claiming ERTC for your restaurant business. For further queries, visit call: 360-852-4818. Check the ERTC eligibility now.

Are You Eligible For ERTC? Check Your Status Now!

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