Supported Industries
Organizations retaining employees during the COVID-19 crisis may be eligible for up to $26,000 per employee through the ERC under the CARES Act. Many eligible entities haven’t claimed this benefit, but it’s not too late. Let’s ERC specializes in assisting businesses and nonprofits across various sectors. Talk with our ERC team today!
Most sectors can qualify for ERC, even without revenue losses. Eligibility depends on government directives related to cleaning, capacity, travel, vendor-client interactions, supply chain disruptions, or event participation.
*Note – These are some examples of the industries that have been successful – but these are not all the industries that can take advantage of this.
Healthcare Industries
COVID-19 impacted various medical sectors, causing financial strain and loss of revenue. The Employee Retention Credit (ERC) is available for hospitals, nursing care facilities, therapists, home healthcare agencies, dentists, chiropractors, and medical transportation companies. Most businesses that paid employment taxes in 2020/2021 can potentially receive a tax refund through the ERC.
Manufacturing Industries
Manufacturing companies impacted by COVID-19 can claim Employee Retention Credit (ERC) if they experienced revenue loss, partial shutdowns, or supply chain disruptions. Partial shutdowns due to government mandates or supply chain issues, like material shortages and increased shipping rates, can qualify businesses for ERC. Most manufacturers are eligible, even if they remained open during 2020 or 2021.
Construction Industries
The construction industry faced slowdowns during COVID-19, making them eligible for Employee Retention Credit (ERC). Qualifying factors include shutdown orders, quarantine protocols, job cancellations, capacity limitations, safety measures, and staffing shortages. The industry lost 1 million workers initially and faced a shortage of nearly 250,000 workers in early 2022, contributing to project delays.
Restaurants Industries
The COVID-19 pandemic severely impacted the restaurant industry, with many facing closure or revenue losses. Almost every restaurant in the U.S. can qualify for the Employee Retention Credit (ERC) by demonstrating a significant revenue loss or being subject to a partial or full government shutdown order. Shutdown orders encompass sanitization requirements, social distancing restrictions, capacity limitations, take-out only mandates, and supply chain disruptions.
Retail Industries
The COVID-19 pandemic significantly impacted brick-and-mortar retail stores, shifting consumer spending to e-commerce. Retailers can qualify for the Employee Retention Credit (ERC) by showing a substantial loss in revenue or being affected by government restrictions, including partial shutdowns. Examples of such restrictions include cleaning rules, social distancing regulations, stay-at-home orders, and supply chain disruptions. Almost every retail store in the U.S. could potentially qualify for the ERC.
Educational Industries
Almost every U.S. educational institution could qualify for the Employee Retention Credit (ERC) by meeting at least one of two criteria: a partial government shutdown or a significant fall in revenue. The term “partial government shutdown” is broad and encompasses enhanced cleaning, social distancing regulations, capacity restrictions, remote learning requirements, supply chain disruptions, and complete shutdowns. All types of educational institutions, including childcare centers, schools, universities, tutoring schools, and trade schools, can apply for the ERC.
Non-Profit Organizations
Non-profit organizations faced challenges during COVID-19, with many making budget cuts. Almost every non-profit in the U.S. can qualify for the Employee Retention Credit (ERC) based on a full or partial government shutdown or a major revenue decline. Shutdown orders affecting non-profits include cleaning requirements, social distancing regulations, capacity limitations, work-from-home rules, and supply chain disruptions.
Hotels & Motels
Hotels and motels impacted by COVID-19 can qualify for the Employee Retention Credit (ERC) without showing revenue decline. They can file for benefits based on partial or full government shutdowns, including cleaning/sanitizing requirements, social distancing and capacity rules, no-travel orders, and supply chain disruptions.