ERTC Credits Rebates: Qualify $773K in 6 Weeks for Franchisees

Key Takeaways

• Franchisees can qualify for up to $773,000 in ERTC rebates within six weeks.
• The Employee Retention Tax Credit (ERTC) program is designed to help businesses keep employees on payroll during the COVID-19 pandemic.
• Eligibility depends on factors like business size, employee count, and revenue decline.
• Accurate documentation and consulting experts are crucial for maximizing rebates.
• Real-life success stories highlight the effectiveness of the ERTC program for franchisees.

Introduction to ERTC Credits

In the wake of the COVID-19 pandemic, many businesses faced unprecedented challenges. The Employee Retention Tax Credit (ERTC) program emerged as a lifeline, offering significant financial relief to businesses that retained employees during this difficult period. For franchisees, understanding and leveraging this program can mean the difference between struggling and thriving.

In this article, I will walk you through the process of qualifying for ERTC credits and how you could potentially receive up to $773,000 in rebates in as little as six weeks. This isn’t just about getting through the pandemic, but about laying a solid foundation for future growth.

ERTC Program at a Glance

The ERTC program was launched as a component of the 2020 CARES Act. It was designed to incentivize businesses to retain employees by offering a refundable tax credit against specific employment taxes. This credit applies to wages paid after March 12, 2020, and before January 1, 2021. The program has been expanded and altered multiple times, making it more widely available to a variety of businesses.

“I was completely unaware of the Employee Retention Tax Credit until I had a conversation with Traci at ERTC.com. In a little over 6 weeks, we found out that we were eligible for $773k in rebates!” – Michael, Multi-location Retail Franchisee, Georgia

Understanding the eligibility requirements and how to apply is crucial to take full advantage of the ERTC program. Let’s get into the details.

Qualifying for ERTC Credits Rebates

Company Size and Number of Employees

The first thing you should look at is how big your company is. The ERTC program is open to companies of all sizes, but the amount of benefits you can get changes based on how many employees you have. Usually, companies with less than 500 employees can claim a larger portion of qualified wages.

For instance, if your franchise has less than 100 employees, you are eligible to claim 70% of qualified wages up to $10,000 per employee every quarter. This suggests that you could get up to $7,000 per employee every quarter in 2021.

How COVID Affected Your Business

Eligibility for the ERTC is also determined by how your business was affected by COVID-19. To qualify, your business must have experienced one of the following:

• Operations were fully or partially suspended because of government orders that limited commerce, travel, or group meetings.
• There was a substantial decrease in gross receipts in comparison to the same quarter in the previous year.

If your franchise was required to shut down or restrict its operations due to local or state mandates, you may be eligible for the ERTC. Likewise, if your revenue fell by more than 50% in a quarter compared to the same quarter in 2019, you may be eligible for the credit.

The Importance of Revenue Decline

Another key factor to consider when determining ERTC eligibility is the revenue decline requirement. This means that a business must have experienced a significant drop in gross receipts during a calendar quarter. For 2020, this translates to a decline of more than 50% compared to the same quarter in 2019. For 2021, the threshold is a 20% decline.

Let’s quickly compare:

If your franchise fulfills these requirements, you’re on track to qualify for the ERTC credits.

Additional Eligibility Factors

In addition to the main requirements we’ve already covered, there are other factors that can determine whether you’re eligible for the ERTC program. For example, new businesses that started operating after February 15, 2020, may also be eligible under certain circumstances. These startups can claim up to $7,000 per employee, with a maximum rebate of $50,000 per quarter.

“The ERTC program has been expanded to include new businesses established after February 15th, 2020. This means Startups & New Businesses are also eligible.” – ERTC.com

So, even if your franchise is new, you could still qualify for a substantial financial rebate through the ERTC program.

First Steps: Assessment and Consultation

Before you start the process of applying for ERTC credits, you need to first assess and consult. This is where you check if your business is eligible based on the criteria we discussed earlier. You should get your financial records, payroll data, and any documentation that shows you had a government-mandated shutdown or revenue decline.

At this point, it can be extremely helpful to talk to a tax professional or someone who specializes in ERTC. They can help you understand the ins and outs of the program and make sure you’re doing everything you need to do. They can also give you tips on how to get the most out of your rebate.

Getting Your Paperwork in Order

After you’ve confirmed that your franchise qualifies for ERTC credits, the next thing you’ll need to do is collect and organize the necessary paperwork. This will include:

• Records of payroll for the periods in question.
• Statements of finance that show a decline in revenue.
• Any documentation of orders from the government that have affected your operations.
• Records of employees, including the hours they worked and the wages they were paid.

It is crucial to have accurate and thorough documentation for a successful ERTC application. If there are any discrepancies or information missing, the process can be delayed or the amount of the rebate can be reduced.

Submitting and Getting Approved

Once you’ve gathered all the required paperwork, you’re ready to send in your ERTC application to the IRS. You’ll need to fill out some forms, like Form 941, which is the Employer’s Quarterly Federal Tax Return, and Form 7200, the Advance Payment of Employer Credits Due to COVID-19.

The IRS will evaluate your application and the supporting documents to decide whether you are eligible and the amount you should receive. This process may take a few weeks, so it’s crucial to submit your application as soon as you can to speed up the approval process.

How to Get the Rebates

After your application gets the green light, the ERTC rebates will be given to you as a refundable credit that goes against your employment taxes. Sometimes, you might get an advance payment of the credit, which can give your franchise quick financial help.

Franchisees need to be aware that the ERTC is a refundable tax credit. This means you can receive the full amount even if it is more than your total employment tax liability. The ERTC program is therefore an extremely valuable resource for franchisees who are looking to recover from the financial impact of the COVID-19 pandemic.

Case Study: Franchisee Triumphs

Let’s consider the power of the ERTC program by examining some actual triumphs from franchisees who have reaped the rewards of the program. These instances underscore how the ERTC can offer substantial fiscal aid and enable businesses to prosper in the face of adversity.

Georgia-based Retail Franchise with Multiple Locations

Michael, who owns a retail franchise with multiple locations in Georgia, had no prior knowledge of the ERTC program. However, after speaking with Traci from ERTC.com, he found out that his business was eligible for a significant rebate. In a mere six weeks, Michael’s franchise was awarded a total of $773,000 in rebates, which provided a crucial financial lifeline during a challenging period.

“I had no idea about the Employee Retention Tax Credit before speaking to Traci at ERTC.com. In just over 6 weeks, we learned that we qualified for $773k in total rebates!” – Michael, Multi-location Retail Franchisee, Georgia

BBQ Restaurant in Missouri

Bob, the CFO of a BBQ restaurant in Missouri, had a similar experience. After working with the team at ERTC.com, his restaurant was able to secure over $400,000 in tax credits in less than three weeks. This financial relief allowed Bob’s restaurant to keep its doors open and retain its employees during the pandemic.

“Working with the team at ERTC.com was a great experience for our restaurant. In less than 3 weeks, we found out we were eligible for over $400k in tax credits! I still can’t believe this is real!” – Bob, BBQ Restaurant, Missouri

Church Financial Manager in Virginia

In Virginia, a church financial manager named Jane discovered that her organization was eligible for substantial ERTC rebates. The church was able to continue its community outreach efforts and support its staff during a difficult time thanks to the program.

“It took us just a little over 6 weeks to find out that we were eligible for a total of $773k in rebates! I must confess that we had no clue about the Employee Retention Tax Credit until we had a chat with Traci at ERTC.com.” – Jane, Church Financial Manager, Virginia

How to Get the Most Out of ERTC Rebates

There are a few key tips to keep in mind if you want to get the most out of the ERTC program. Following these best practices can help you avoid any mistakes during the application process and ensure you receive the maximum possible rebate.

Keeping Records Straight

The key to a successful ERTC application is keeping your records straight. Make sure you have all your financial records, payroll data, and any other relevant documents and that they are complete and current. This will help you avoid any potential hiccups or delays during the review process.

Moreover, maintaining tidy paperwork can simplify the process of answering any additional IRS inquiries. This can speed up the approval process and help you get your rebate as soon as possible.

Expert Consultants

Due to the intricacies of the ERTC program, it’s highly recommended to consult with experts. Tax professionals and specialized ERTC advisors can help you navigate the program and make sure you’re ticking all the boxes.

Most importantly, these experts can provide valuable insights into maximizing your potential rebate. They can help you identify eligible wages, navigate the application process, and avoid common pitfalls that could result in a reduced rebate amount.

Important Points to Remember

• Franchisees have the potential to qualify for ERTC rebates of up to $773,000 in as little as six weeks.
• The Employee Retention Tax Credit (ERTC) program is a measure put in place to help businesses retain their employees during the COVID-19 pandemic.
• Whether a business is eligible for the program depends on a variety of factors, including the size of the business, the number of employees, and how much the business’s revenue has declined.
• Keeping accurate records and seeking advice from experts is crucial in order to maximize the amount of rebates a business can receive.
• There are numerous examples of real franchisees who have successfully used the ERTC program.

What are ERTC Credits?

The COVID-19 pandemic has presented businesses with a number of unique challenges. The Employee Retention Tax Credit (ERTC) program has been a lifeline for many of these businesses, providing substantial financial assistance to those that have managed to keep their employees on the payroll during these trying times. For franchisees, understanding this program and how to take advantage of it can be the difference between barely getting by and being successful.

This article will take you through the process of qualifying for ERTC credits and show you how you could potentially get up to $773,000 in rebates in just six weeks. It’s not just about getting through the pandemic, it’s about laying the groundwork for future growth.

ERTC Program Summary

The ERTC program was launched as a component of the CARES Act in 2020. It was designed to incentivize businesses to retain employees by providing a refundable tax credit against specific employment taxes. This credit applies to wages paid after March 12, 2020, and before January 1, 2021. The program has been expanded and altered multiple times, making it more widely available to businesses.

“Before I spoke to Traci at ERTC.com, I didn’t know anything about the Employee Retention Tax Credit. In just a little over 6 weeks, we found out that we were eligible for a total of $773k in rebates!” – Michael, Retail Franchisee with Multiple Locations, Georgia

Understanding the eligibility requirements and the application process is crucial to fully take advantage of the ERTC program. Let’s get into the details.

Who Can Qualify for ERTC Credits Rebates?

How Your Business Size and Number of Employees Affect Eligibility

The first thing to look at when determining eligibility for the ERTC program is the size of your business. This program is open to businesses of all sizes, but the benefits can change depending on how many employees you have. Generally, businesses with fewer than 500 employees can claim a larger percentage of qualified wages.

Let’s say you have a franchise with less than 100 employees. You’re eligible to claim 70% of qualified wages up to $10,000 per employee every quarter. So, for 2021, you could get as much as $7,000 per employee every quarter.

How COVID Affects Eligibility

The impact of COVID-19 on your business is another important factor in determining eligibility. In order to qualify for the ERTC, your business must have been affected in one of the following ways:

• Operations were fully or partially suspended as a result of government orders restricting commerce, travel, or group meetings.
• There was a substantial decrease in gross receipts compared to the same quarter in the previous year.

If your franchise was required to close or limit its operations due to local or state mandates, you may be eligible for the ERTC. Similarly, if your income fell by more than 50% in a quarter compared to the same quarter in 2019, you may be eligible for the credit.

Requirements for Revenue Decline

The requirement for revenue decline is another crucial factor to determine ERTC eligibility. To be more specific, your business should have seen a substantial drop in gross receipts during a calendar quarter. In 2020, this means a decrease of more than 50% compared to the same quarter in 2019. In 2021, the threshold is a 20% decrease.

Let’s do a quick comparison:

If your franchise fits these criteria, you’re well on your way to qualifying for the ERTC credits.

Additional Qualification Criteria

In addition to the main requirements listed earlier, there are other elements that can impact your ability to qualify for the ERTC program. For example, new businesses that were established after February 15, 2020, may also be eligible under specific circumstances. These startups are able to claim up to $7,000 per employee, up to a maximum of $50,000 per quarter.

“The ERTC program has been designed to be inclusive. It has been expanded to include new businesses that were established after February 15, 2020.” – ERTC.com

So, even if your franchise is new, you could still be eligible for substantial financial assistance through the ERTC program.

First Steps: Assessment and Consultation

Before you start the application process for ERTC credits, it’s important to do an initial assessment and consultation. This means looking at your business to see if it’s eligible based on the criteria we talked about earlier. You will need to have financial records, payroll data, and any documentation about government-mandated shutdowns or revenue declines.

It can be very helpful to consult with a tax professional or a specialized ERTC advisor at this stage. These experts can help you to understand the intricacies of the program and make sure that you’re fulfilling all the necessary requirements. They can also provide insights into how to maximize your potential rebate.

Gathering Your Paperwork

After you’ve confirmed that your franchise qualifies for ERTC credits, the next step is to collect and prepare the necessary paperwork. This includes:

• Payroll records for the applicable periods.
• Financial statements that demonstrate a decrease in revenue.
• Any government orders that have impacted your business operations.
• Records of employees, including hours worked and wages paid.

Proper and comprehensive documentation is key to a successful ERTC application. Any inconsistencies or lack of information can slow down the process or lead to a smaller rebate.

Application and Acceptance

Once you have all your paperwork ready, you can send in your ERTC application to the IRS. You’ll need to fill out certain forms like Form 941, the Employer’s Quarterly Federal Tax Return, and Form 7200, Advance Payment of Employer Credits Due to COVID-19.

The IRS will take some time to go over your application and documents to see if you qualify and how much you will get back. This can take a few weeks, so you should send in your application as soon as you can to speed up the process.

Getting the Rebates

After your application has been approved, the ERTC rebates will be given to you as a refundable credit against the employment taxes you owe. In some instances, you may be given an advance payment of the credit, which can provide immediate financial relief for your franchise.

The ERTC is a refundable tax credit, which means that you can get the full amount even if it is more than your total employment tax liability. This makes the ERTC program a very valuable tool for franchisees who are trying to recover from the financial effects of the COVID-19 pandemic.

Case Study: Franchisee Triumphs

Let’s take a look at some success stories from franchisees who have taken advantage of the ERTC program. These stories show how the ERTC can offer substantial financial assistance and help businesses flourish even in difficult situations.

Georgia-Based Retail Franchisee with Multiple Locations

Michael, who owns a retail franchise with multiple locations in Georgia, was not initially aware of the ERTC program. After speaking with Traci at ERTC.com, he found out that his business was eligible for a sizable rebate. In just six weeks, Michael’s franchise was awarded a total of $773,000 in rebates, providing a significant financial lift during a challenging period.

“Before I talked to Traci at ERTC.com, I didn’t know anything about the Employee Retention Tax Credit. But in a little over 6 weeks, we found out we were eligible for $773k in total rebates!” – Michael, Multi-location Retail Franchisee, Georgia

BBQ Restaurant in Missouri

Bob, who is the CFO of a BBQ restaurant in Missouri, had a similar experience. After collaborating with the team at ERTC.com, his restaurant managed to secure over $400,000 in tax credits in less than three weeks. This financial aid allowed Bob’s restaurant to stay in business and keep its employees during the pandemic.

“Working with the ERTC.com team was a great experience for our restaurant. We found out in less than 3 weeks that we were eligible for over $400k in tax credits! I still can’t believe this is real!” – Bob, BBQ Restaurant, Missouri

Financial Manager of a Church in Virginia

In Virginia, Jane, a financial manager of a church, found out that her organization qualified for a significant amount of ERTC rebates. By taking advantage of the program, the church was able to continue its community outreach efforts and support its staff during a difficult time.

“Within just over a month and a half, we discovered that we qualified for a total of $773k in rebates! I confess we were clueless about the Employee Retention Tax Credit before our conversation with Traci at ERTC.com.” – Jane, Church Financial Manager, Virginia

Advice for Maximizing ERTC Rebates

In order to ensure that you receive the largest possible rebate from the ERTC program, it’s crucial to adhere to some best practices. These pieces of advice can guide you through the application process and help you avoid typical mistakes.

Proper Record-Keeping

Keeping your records accurate is a key element in a successful ERTC application. Make sure all your financial records, payroll data, and other necessary documents are complete and current. This will help you prevent delays and possible problems during the review process.

Moreover, maintaining well-organized records can simplify the process of answering any further inquiries from the IRS. This could speed up the approval process and make sure you get your rebate as fast as possible.

Expert Guidance

With the intricate nature of the ERTC program, it can be very advantageous to consult with experts. Tax professionals and specialized ERTC advisors can help you navigate the program’s complexities and make sure you’re satisfying all the necessary requirements.

Essentially, these professionals can offer precious advice on how to get the most out of your potential rebate. They can assist you in pinpointing wages that are eligible, guiding you through the application procedure, and steering clear of typical blunders that could lead to a smaller rebate sum.

“We guide you through the complicated filing procedure to ensure you get the biggest rebate you’re eligible for under the Employee Retention Tax Credit Program. BUILD. GROW. SCALE.” – ERTC.com

Keeping Up with the Rules

There have been many changes to the ERTC program since it was first introduced, and it’s important to keep up with the latest rules to get the most out of your rebate. This means being aware of any new qualifying conditions, changes in the amount of the credit, and changes in how to apply.

Staying up-to-date with the ERTC program can be as simple as signing up for newsletters from trusted tax advisors or keeping an eye on the IRS’s updates. Being informed about any changes to the program will allow you to make the most of the benefits available and steer clear of any possible problems.

Common Questions

What exactly is the ERTC Program?

The Employee Retention Tax Credit (ERTC) program is a tax credit that can be refunded. It was created to assist businesses in retaining employees on their payroll during the COVID-19 outbreak. The credit is applied to certain employment taxes for wages paid after March 12, 2020, and before January 1, 2021.

What’s the Maximum Amount I Can Claim for Each Employee?

In 2020, companies could claim a credit of 50% of the qualified wages for each employee, with a limit of $10,000 per employee for each quarter. This means that the maximum credit a company could claim for each employee was $5,000. In 2021, the amount of the credit was increased to 70% of the qualified wages for each employee, with the same limit of $10,000 per employee for each quarter. This means that companies could claim a maximum credit of $7,000 for each employee for each quarter.

Can Startups be Eligible for ERTC?

Yes, startups that were established after February 15, 2020, can be eligible for the ERTC program under specific conditions. These businesses can claim up to $7,000 per employee, with a maximum rebate of $50,000 per quarter.

Is There a Cut-Off Date for Applications?

The ERTC program has a set period in which you can claim the credit. However, it’s crucial to keep an eye on any deadline extensions or changes. To make sure you meet all the deadlines and get the highest possible rebate, you might want to consider consulting a tax professional or an ERTC advisor.

What If My Business Didn’t Completely Close?

Even if your business did not fully close, it can still qualify for the ERTC program. If your operations were partially suspended due to government orders or if you had a significant decline in gross receipts, you could be eligible for the credit.

To sum it up, the ERTC program is a big help for franchisees that were affected by the COVID-19 pandemic. If you know the qualifications, follow the right steps, and ask help from the experts, you can get the highest possible rebate and gain up to $773,000 in just six weeks. This financial help can make your franchise survive and even succeed in these difficult times.