Most business owners are aware of the Paycheck Protection Program (PPP), which has been receiving a lot of news attention and hype. “What you are all probably hearing is the second round of funding that opened on Monday, April 27, 2020 will most likely go very quickly. Plus, there will be much more scrutiny on the businesses who choose to apply and receive the loan,” says Lindsay Martin, Global Account Representative at Synergi Partners. “[But] there is another economic relief option that many restaurant owners do not know about!”
The PPP is part of what’s called the CARES Act that passed legislation on March 27, 2020. This legislation also included the Employee Retention Tax Credit (ERTC), which allows employers who experienced fully/partially suspended operations or a downturn in revenue to receive a refundable tax credit. Synergi Partners specializes in these types of disaster credits and is ready to help the restaurant industry receive some much-needed economic relief.
The ERTC is not a loan but a refundable payroll tax credit that is being offered to businesses of all sizes. This refundable payroll tax credit, capped at $5,000 per employee, is a significant opportunity to infuse cash quickly into your business.
“A lot of my clients think this is too good to be true,” says Martin, “but this is absolutely a part of the legislation and unfortunately only the PPP is getting all of the attention.”
It is safe to assume that all restaurant businesses qualify because they have been partially suspended due to the government mandate of not allowing dine-in services. This is an above-the-line credit, and it will offset your federal tax withholdings, with excess amounts being refunded to businesses in a matter of weeks. Even if you already applied and/or received funds for the PPP loan, you still want to understand this opportunity as there are discussions that may allow you to be able to take both the PPP loan and the ERTC credit in the foreseeable future.
This is the first time in tax credit history that businesses of all sizes can benefit from this one program!
Martin’s family is also in the restaurant industry and owns a small business, The Wing Man Bar & Grill® in East Greenville, Pennsylvania. “I understand the heartaches of dealing with this pandemic and the new guidelines we all have to abide by,” says Martin. “My goal is to help as many businesses as possible during this time.”
While many businesses may try to claim this credit on their own, Synergi Partners has the expertise to maximize and review all credit opportunities. “There are different nuances depending if the employee count is under 100 full time employees or over,” says Martin, “but this is why Synergi Partners is here as a consultant to determine the business’ eligibility and how they can benefit from the credit.”
The reason restaurants and businesses need an expert like Synergi Partners for a credit like this is because the legislation for this credit has so many nuances and unique rules. “We are finding that companies are worried about staying in compliance just in case of an audit,” says Martin.
Synergi Partners’ Government Relations Team has a seat at the table in DC, giving them the ability to react quickly to ongoing changes and to ensure their clients truly understand this opportunity while staying in strict compliance with the law. Synergi is also tracking all appropriate government orders including county and municipal jurisdictions, which have imposed even more stringent regulations. Synergi receives all guidance through a DLA Piper tax attorney who checks the consistency and thoroughness of the processes and methodologies, so all credit packages will stand through audit.
