January 27, 2023
The backlash of COVID-19 has been far-reaching, affecting healthcare, the economy, business, and more. Now in 2023, we’re still recovering, and many businesses are still trying to get back on track. One bill helping with this effort is the CARES Act, which we’ll discuss here.
What is the CARES Act?
The Coronavirus, Aid, Relief, and Economic Security (CARES) Act is a stimulus bill that was passed in March 2020 worth $2.2 trillion. Its purpose was to “provide emergency assistance and healthcare response for individuals, families, and businesses affected by the 2020 coronavirus pandemic.” This package has been instrumental in recovery efforts and has helped offset much of the economic fallout that resulted from COVID.
With the economy trending toward a recession during the height of the pandemic, the CARES Act was a large-scale bill designed to bolster the US economy, helping everyone from employees to families to independent contractors to small and large businesses.
In the context of for-profit and non-profit organizations, the CARES Act serves several purposes, including providing:
- Emergency loans to small businesses
- Economic injury disaster loans to small businesses
- Economic stabilization loans to mid-sized and large businesses
- Employee Retention Credit (ERC) tax credits to mid-sized and large businesses
You can learn more about the CARES Act and find helpful data in this resource from Investopedia.
Who is Eligible?
The bill was put into place as a way to reward employers who kept employees, and Employee Retention Tax Credits (ERTC) are CARES Act money. For an organization to be eligible, it must have full-time W2 employees who work 30 hours or more per week and be paying taxes and contributing to the economy.
Note that the majority of eligible organizations are still in operation. However, many are no longer operational because of the pandemic. Even if an organization has since closed, it may still be eligible for funding because they were open and operating when the CARES Act was passed. In this case, the money can be used to start up again or invest in other business ventures.
How JCA Specialist Can Help
A few different qualifications and facts are needed to determine if your specific organization is eligible, including your industry, the number of employees you retained while you lost money, how you add up losses, and more. Because of the complexities and nuances of ERTC money, it’s helpful to turn to a professional team of CPAs that know the ins and outs of the process.
At JCA Specialist, we’re a subsidiary of the national Jorns Act Association and help clients throughout the entire country. And we’ll be glad to help you determine if your organization is eligible, and if so, maximize your credits. We’re located in Rochester, NY and can be reached by visiting our secure contact form or by calling 888-335-1552.