February 24, 2023
Tax credits are a form of financial assistance given to eligible organizations that suffered hardships because of the pandemic. They’re part of the 2020 stimulus bill called The Coronavirus, Aid, Relief, and Economic Security (CARES) Act, which is worth a total of $2.2 trillion.
If eligible, organizations can receive a significant amount of money through tax credits like the Employee Retention Tax Credit (ERC) for up to $26,000 per full-time employee to offset the financial backlash stemming from COVID. Here are three specific ways tax credits like these can help your organization.
Keep Employees on Payroll
Perhaps the biggest advantage of this stimulus bill is that it gives eligible organizations a financial cushion to retain valued employees. If, for example, there was a significant decline in sales volume because of the pandemic, businesses and organizations may have been forced to let employees go. But emergency relief tax credits can provide the assistance where it’s needed to keep staff on payroll while the organization gets back on its feet.
Invest in the Organization
Another way these tax credits can help is by allowing companies and organizations to invest in the business by purchasing equipment and real estate. If there is already adequate manpower and enough money to cover payroll, the extra money can present an excellent opportunity to fuel growth and expansion. This can help your organization thrive in upcoming years without having to invest any personal money or look to obtain financing.
Use of Unrestricted Funds
Although these funds are unrestricted, it's important to note the money can be used in a variety of ways beyond business investments. It’s common for companies to have used personal monies that were intended for vacations, homes, boats, and other personal rewards for running a business to keep it open at their sacrifice.
The next step is to see if your organization is eligible. At Jorns CARES Act, we’re glad to assist you and when you’re ready to begin the process to claim your credits. Our team of experts has helped thousands of organizations secure billions in emergency relief. To learn more about our services and how we can help you, we invite you to contact us by calling 888-355-1552 or by filling out our secure contact form.