The Covid-19 pandemic impacted virtually every business, regardless of industry or size. One of our clients, a kayak rental business, came to us for guidance on obtaining employee retention tax credits for 2020 and 2021.
Keep reading to learn how much they obtained with the help of Cunningham & Associates.
How the pandemic affected the kayak rental business
Our client is a kayak rental company that also rents paddleboards, canoes, and bicycles. In addition, the company offers tours, lessons, and children’s summer camps.
As the business was highly dependent on tourism and in-person gatherings, the pandemic travel restrictions and social distancing measures drastically impacted its viability and bottom line.
In 2020, social distancing, travel restrictions, and limited capacity mandate reduced the company’s profits. Then in 2021, supply chain disruptions caused additional revenue problems.
In 2020, the client took out a Paycheck Protection Program loan. However, they did not apply for a loan in 2021.
Obtaining Employee Retention Credit
ERTCs are a tax program meant to help offset some of the losses companies took during the Covid-19 pandemic. With the program, US businesses can claim up to 26,000 dollars in tax credits for every employee they keep on the payroll in 2020 and 2021.
It doesn’t matter what industry the company is in or if the business was essential or not during the pandemic.
Many business owners who schedule a free ERTC consultation with us assume that their PPP loan will impact their ability to apply for and receive ERTCs. But the good news is, that’s not a problem for us.
It doesn’t matter if the company took out a PPP loan or if the loan was forgiven. No matter the PPP loan status, our experienced tax consultants can obtain an employee retention credit for your business.
In this particular case, we obtained a total of $211,477.00 in ERTCs for our client. This total included all of 2020 and Q1, Q2, and Q3 of 2021.
Contact C&A for your free ERTC consultation
Regardless of what type of business you have, if you have even one employee you retained on the payroll, you’re likely eligible for the employee retention tax credit. In addition, if you applied for a PPP loan or had the loan forgiven, you can still get ERTCs.
But what if you want to preserve the ability to get your PPP loan forgiven in the future? You, too, can obtain ERTCs while maintaining PPP loan forgiveness.
Don’t leave money on the table. Instead, schedule a FREE consultation with us today to see how much you can get in employee retention tax credits.