Forced business closures, capacity limits, and supply chain problems have had a massive impact on business operations and revenue in the US.
For companies in the property management industry, social distancing measures, rent moratoriums, and the move from commercial office spaces to work-from-home arrangements have significantly impacted their balance sheets. In addition, partial and total office closures have also curtailed revenue streams. A surveyed 66.7 percent of property managers claim the Covid-19 pandemic has negatively impacted their business operations.
Unfortunately for one of our property management clients, these issues were a reality for them. That’s why they came to us for help obtaining Employee Retention Tax Credits (ERTCs).
Our property management client’s business was deemed non-essential during the Covid-19 pandemic. As a result, they had to partially close their business operations in 2020 and 2021. With 375 employees on the payroll, they had to pay their workers not to work while the business was running at reduced capacity.
The client took out a loan via the Paycheck Protection Program (PPP). The loan was later forgiven, and they did not have to take a second draw on the program. They contacted us about the employee retention credits and how they could obtain them.
The C&A Approach
Many clients approach us with two reservations:
- They’re worried they won’t be able to get their PPP loan forgiven if they get the ERTC
- Clients think that by taking out a PPP loan, they can’t apply for ERTC anyway
Both of these assertions are false. Even if you’ve received PPP funds, you’re likely eligible for the employee retention tax credit.
Our tax professionals fully audited the analyzed period and revised the client’s 2019, 2020 & 2021 financials and gross receipts.
We performed a qualified wage computation analysis of PPP funds for payment of employee wages to optimize the number of wages qualifying for the employee retention tax credit while preserving PPP forgiveness.
Finally, we completed all federal tax forms and additionally required supporting documentation.
As a result, we obtained $7,748,211.00 — almost eight million dollars — in ERTCs for the client for the 2021 tax year.
Don’t Leave Your Money on the Table. Let Us Help Today.
At Cunningham & Associates, we have over 30 years of experience In tax consulting. We’ve helped over 1,000 businesses claim over half a billion dollars in employee retention credits.
Reach out to us today to explore your options for obtaining ERTCs while preserving PPP loan forgiveness.