Photo of bread in two bags

A Case Study of the Employee Retention Tax Credit The Employee Retention Credit can be a very useful rebuilding tool for many of the hotels and restaurants in the US. What follows is a typical case study of how the credit works. The Bread Basket is a family style restaurant that has two locations.  Each location is roughly the same size, and has family style seating able to accommodate 250 guests.  The staff of each restaurant consists of a mix of cooks, wait staff, hosts, and managers, totaling about 14 people per day.  They serve a wide variety of home-style food

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A photo of a start up business

Recovery Startup Businesses are eligible for the ERC for 3rd and 4th quarter 2021 The American Rescue Plan Act of 2021 passed by Congress in March of 2021 expanded the Employee Retention Credit by introducing a new eligible category of employer – The Recovery Startup Business. A Recovery Startup Business is defined as a business that started operating after February 20, 2020 and has “average annualized receipts” of less than $1,000,000. Recovery Startup Businesses are automatically eligible for the Employee Retention Credit in the third and fourth quarters of 2021. The American Rescue Plan Act did scrap the Employee Retention

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Tax breaks for businesses

Were you required to limit your business due to Covid-19? If your business was affected during 2020 or 2021, you may be entitled to apply for the Employee Retention Tax Credit. This is a large refundable tax credit provided by the federal government to give relief to fully or partially locked down businesses that kept employees on the payroll.   There are eligibility rules limiting the number of businesses that can participate in these programs, including if your business was forced to close, fully or partially, by order of a government mandate. Did the state or local government mandate businesses

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