Let’s get real, the past two years has been excruciating difficult for bars & restaurants.
COVID-19 wrecked the industry, forcing many to layoff staff or shut doors all together. If you’re still operating, congrats! You weathered a storm we haven’t seen in generations. Just being able to keep operating is, in some ways, it’s own reward, but you deserve and can get more.
And you can get a lot of money back from the Feds via the Employee Retention Tax Credit (ERTC).
What is the Employee Retention Tax Credit (ERTC)?
The ERTC is a refundable credit that businesses can claim on qualified wages, including certain health insurance costs, paid to employees. It was designed to incentivize companies to keep staff on their payroll during the sweeping shutdowns of 2020 and 2021 — including bars & restaurants.
Simply put, if you paid staff during 2020 and/or 2021, you can get money back from the Federal Government — up to $26,000 per employee.
Take us for example.
The Rail Media had to partially suspend operations during 2020 but, with a lot of pieces moving, were able to keep our staff on payroll for most of 2020 and all of 2021. We’re just a small company of three folks, but this meant we were able to get more than $14,000 per team member. That’s not an insignificant amount.
There’s no reason why your restaurant shouldn’t also get money back from the Feds for looking after your team and keeping them on payroll.
How Restaurants Can Take Advantage of the ERTC
In a recent survey, 92% of restaurants said they had to close operations in 2020 due to health mandates. That same group experienced a sales loss of more than 20%!
Despite that, nearly 60% of bars & restaurants admitted to not have taken advantage of the of the Employee Retention Tax Credit yet.
That’s so much money left behind — money restaurants desperately need to operating. If you haven’t gotten money back from the ERC program, you’re missing out. Fortunately, the ERTC process is pretty simple and we can help your restaurant get started.
The Rail & Eldorado Tax Solutions are offering free ERTC consultations for any bar or restaurant. We’ll walk you through the process and help you figure out exactly how much money your restaurant could get back.
You worked hard to stay afloat and looked after your team. You owe it to yourself to get some much needed cash back into your hands.
Some ERTC Quick Facts & Stats
Credits are up to $5,000/employee for 2020 & $7,000/ employee per quarter for 2021
Total potential of $26k per employee
There are three different ways to qualify:
Reduction in gross receipts
Full or partial suspension of operations (mandates)
Recovery startup
You can get ERTC money back even if you received PP and/or SBA loans
Our average ERTC for clients in the restaurant industry is $146,565.34.
We calculate the credits free-of-charge.