Employee retention credit

Restaurant Owners: Claim Up To $26,000 ERC Tax Credit Per Employee!

Get the support you need with the employee retention credit program

Included in the CARES Act, the Employee Retention Credit (ERC) is a wholly refundable tax credit tailored for restaurants facing government-mandated reductions in operation or significant revenue decreases during 2020 and 2021. While it stands apart from the Paycheck Protection Program (PPP), restaurants that tapped into PPP resources can still claim the ERC. In fact, the ERC's value can surpass that of the PPP for numerous restaurants.

ERC for Restaurant Financial Recovery

ERC Restaurant Eligibility Icon

ERC Restaurant Eligibility

Restaurants can access the Employee Retention Credit if they faced government-imposed capacity restrictions or experienced substantial drops in gross receipts.

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Compatibility with Other Aids

Organizations that have availed of PPP loans, Restaurant Revitalization Funds, or Shuttered Venue Operator Grants are still eligible for ERC benefits.

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Provisions for New Businesses

Establishments that commenced operations post-February 2020 may be eligible under special startup rules, allowing them to claim up to $100,000 in refundable credits for 2021.

Restaurants Are Eligible For The Employee Retention Credit (ERC)

ERC Eligible

Qualification Can Be Achieved Through Two Main Avenues:

  1. Demonstrating a significant revenue loss
  2. Providing evidence of adherence to government-issued partial or full shutdown mandates. Every restaurant experienced such directives, which encompassed measures like:
    • Heightened sanitization protocols,
    • Social distancing mandates,
    • Capacity restrictions,
    • Takeout-only models, and
    • Supply chain challenges.

Every restaurant should explore this refund avenue. The experts and Peach Capital ensure restaurants have the necessary evidence to stake their claim for the ERC.

Missed the initial window? It's not too late! Restaurants can still apply for the ERC for the years 2020 and 2021. Even if tax filings for those years are complete, amended returns remain a viable option, given the ERC's three-year lookback provision. Peach Captial is ready to assist U.S. restaurants in updating their 941-X forms to ensure they harness the full benefits of the ERC for both years.

The eligibility conditions for the ERC can be consistent across various restaurant franchises, provided the same circumstances are present. Nonetheless, mandates at the state and local levels may vary, underlining the need for precise credit calculations.

The process can be more time-consuming and demanding when addressing multiple franchises, but the potential financial gains should more than compensate for the added effort. Collaborating with Peach Capital can significantly ease this complexity, enabling franchisees to maximize the credit advantages across all their outlets.

It's crucial to remember that owning multiple can increase the total number of employees, influencing both the rules and the credit amount claimable for payroll. This highlights the importance of consulting with experts like Peach Capital who are familiar with aggregation rule intricacies.

FAQs on Employee Retention Credit (ERC) for Restaurants

  • The ERC is a refundable tax credit designed to help businesses, including restaurants, that retained employees during the economic challenges of the COVID-19 pandemic. It provides a credit against certain employment taxes to qualifying businesses that maintained their payroll.