A lot of companies work hard to retain employees during times of COVID, but many don’t think of how they can claim the Employee Retention Credit. What is it? It’s an incentive for employers who have retained their employees on the payroll during COVID. The credit is in the form of a dollar-for-dollar reduction of an employer’s tax liability.
This credit is designed to help employers pay for certain wages and other employment costs that they have incurred during COVID. No matter which industry you belong to, despite all industry differences, all types of businesses can qualify for ERC. You can seek the help of an ERC specialist to check whether you meet the eligibility criteria for ERC in California.
Here are different types of businesses that can claim ERC.
- Healthcare
Healthcare institutions were affected by the government-imposed COVID restrictions. Medical institutions like health clinics, dental clinics, and pharmacies can check their eligibility for ERC to enjoy tax benefits if they had kept their employees on payroll during the government-imposed COVID restrictions.
- Educational institutions
In California, educational institutions like schools and universities were also affected by COVID. Educational institutions can check their eligibility for the ERC provided they had kept their employees on the payroll during COVID.
- Manufacturing
Manufacturing companies in California were also impacted by government-imposed restrictions during COVID. They might be eligible for ERC if they had kept their employees on payroll or incurred other employment costs during the COVID period.
- Transportation services
Employers in the transportation sector were also impacted by the government-imposed restrictions during COVID. So, if you have a transportation business, you can check your eligibility for ERC if you had kept your employees on the payroll during COVID.
- All retail stores
If you’re a retail store owner, check your eligibility for ERC if you had kept your employees on payroll during COVID. Some retail stores had to completely shut down their operations due to COVID restrictions.
- Restaurants
Many restaurants were also negatively impacted by the COVID restrictions. If you had kept your employees on payroll during COVID, you can claim ERC.
- Personal care businesses
Personal care businesses were also impacted by government-imposed restrictions during COVID. These included businesses like barber shops, beauty salons, and spas that had kept their employees on payroll during the COVID period.
- Construction industry
The construction industry was also negatively impacted by COVID. Construction businesses that had kept their employees on the payroll or incurred other employment costs during the COVID period can claim ERC.
