Employee Retention Credits—ERCs—have been a surprising silver lining during the pandemic. Businesses were faced with difficult decisions at the start of the pandemic. With shutdowns and reduced business, many wanted to keep their employees but didn’t know how. Fortunately, the CARES Act introduction of ERCs provided a way forward. Now, we know that not only did ERCs help businesses survive—they actually helped many companies thrive and grow. Chances are that you’ve heard a success story or two about ERCs helping businesses in your area.
Here are some of the success stories we’ve helped with:
Engineering Consulting Firm Refund
One of our clients, an engineering consulting firm, was devastated by COVID. They faced a significant decline in revenues, putting the jobs of their seven full-time employees on the line. They were committed to keeping those seven workers in their jobs, and managed to do so throughout the entire pandemic. Royce CPAs helped calculate their eligibility, and they are receiving a $35,000 ERC refund!
Construction Trade Contractor Refund and Loan Forgiveness
Construction ground to a halt in the early part of 2020, and job sites shut down all over the country. Our client didn’t want to let 25 employees go during the pandemic, and instead found work for them to do around the office, and periodically paid employees to stay home to ensure everyone was safe. Royce CPA worked with them to line up their PPP loan with the ERC, and as a result, not only did they have a $144,000 PPP loan fully forgiven, but they also received a $105,000 ERC refund!
Athletic Facility Refund
A local athletic facility was forced to close, which created an opportunity to claim the ERC. We are working with them on ERCs, and although the numbers are still be calculated, this client should receive at least $25,000 for 2020 and more for Q1 of 2021.
What could ERCs mean for you? If your records are already in the OBO at The Royce CPA Firm, we’re already tracking you and will let you know if you are eligible. If not, reach out to us to find out about sharing your records and to learn more about how we can help. Dial (520) 321-4626 to reach our CPA firm in Tucson today.