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IRS Updates, Tax Tips, and Program Information. Anything you want to know to help your business get the money is deserves you can find right here.
Declared Disasters
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
Natural Disasters
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
Disaster Readiness
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
Disaster Recovery
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
ClimateTech
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
Program Updates
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
IRS Updates
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
Tax Tips
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
ERC Company News
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
ERTC for Restaurants and Hospitality Businesses: Maximizing Your Claim
The COVID-19 pandemic hit the restaurant and hospitality industries harder than nearly any other sector. From mandated shutdowns and social distancing rules to supply chain breakdowns and staffing shortages, thousands of restaurants, hotels, and event venues experienced significant disruptions. To help offset these losses, the federal government introduced the Employee Retention Tax Credit (ERTC)—a refundable payroll tax credit aimed at helping employers retain staff and survive economic hardship.
If you’re in the restaurant or hospitality business, the ERTC could mean tens or even hundreds of thousands of dollars back in your pocket. But claiming the full amount you’re eligible for requires knowing the rules—and how to apply them to your specific circumstances.
Here’s how to maximize your ERTC claim and avoid leaving money on the table.
1. What Is the ERTC?
The Employee Retention Tax Credit (ERTC) was established under the CARES Act and extended by subsequent legislation to support businesses that kept employees on payroll during COVID-19-related disruptions.
Key Features:
Refundable payroll tax credit
Up to $5,000 per employee in 2020
Up to $7,000 per employee, per quarter for the first three quarters of 2021 (maximum of $21,000 per employee)
Can be claimed even if you received a PPP loan, as long as wages aren’t double-counted
2. Why Restaurants and Hospitality Businesses Qualify
The IRS provides two main ways to qualify for the ERTC:
✅ 1. Government-Mandated Shutdowns
If your restaurant or hospitality business was fully or partially closed due to a government order (indoor dining restrictions, limited capacity, event bans, etc.), you likely qualify—even if you pivoted to takeout or outdoor dining.
✅ 2. Significant Revenue Decline
In 2020, you qualify if your gross receipts declined 50% or more compared to the same quarter in 2019.
In 2021, the threshold was lowered to a 20% decline compared to 2019.
Many restaurants and hospitality venues experienced this drop in revenue, especially during the height of the pandemic.
3. Understanding Qualified Wages
Qualified wages include wages paid to employees during eligible periods, plus certain health plan expenses. The amount of wages you can claim depends on your average full-time employee count:
For 2020, if you had 100 or fewer full-time employees, you could claim wages paid to all employees, working or not.
For 2021, that threshold was raised to 500 full-time employees.
This means many restaurants and hotels with smaller teams can claim wages for all staff retained, regardless of whether they were actively working.
4. Maximize Your Claim with These Tips
🔍 Tip 1: Document Every Government Order
Keep records of:
Indoor dining bans
Reduced capacity requirements
Event limitations
Curfews or hour restrictions
These orders can be used to support eligibility for the credit, especially under the partial suspension test.
💡 Tip 2: Don’t Overlook Non-Tipped Wages
Tipped wages over $20/month per employee are included in qualified wages for ERTC purposes—so your servers' base pay and tips both count (up to the wage cap).
🧾 Tip 3: Avoid Double-Dipping with PPP
If you received a Paycheck Protection Program (PPP) loan, you must segregate wages used for loan forgiveness from those claimed for ERTC.
But good news: you can still claim ERTC, even if you received PPP funds—just be sure you're not using the same payroll for both programs.
👥 Tip 4: Include Health Insurance Costs
Employer-paid health insurance premiums for eligible employees can also be included in qualified wage calculations—boosting your total credit.
📅 Tip 5: Consider the Lookback Rule
In 2021, if your revenue in a given quarter didn’t meet the 20% decline threshold, you could still qualify by applying the Lookback Rule, using the prior quarter’s revenue drop instead.
5. How to Claim the Credit
To claim ERTC, you must:
Calculate eligible wages per employee, per quarter.
File Form 941-X to amend previously submitted payroll tax filings.
Keep thorough documentation in case of an audit.
💼 It’s highly recommended to work with a CPA or ERTC specialist to ensure your claim is accurate, complete, and fully optimized.
The ERTC Can Be a Game-Changer for Hospitality Recovery
The ERTC provides significant financial relief for restaurants, bars, hotels, caterers, and other hospitality-related businesses. But to receive the maximum benefit, you must understand how the rules apply to your operations, staffing, and revenue.
Key Takeaways:
Restaurants and hospitality businesses are highly likely to qualify due to mandated shutdowns or revenue losses.
Tip wages, health benefits, and smaller headcounts can all boost your claim.
PPP recipients can still claim ERTC with careful wage tracking.
You can claim retroactively by amending your payroll tax filings.
How Business Networks Can Aid in Recovery
Click the “Get Assistance” button to begin the process — we are here to help!
Hear What Our Clients Say
Job Search Agency - FL
"The Economic Recovery team was outstanding with our ERC tax credit. They were highly communicative, very thorough, and their attention to details provided us comfort should anything need to be reviewed. We are recommending them to other companies we do business with as well."
Veteran Non-Profit - IN
"Thank you so much for providing your service. As a non-profit the majority of our help is volunteer. We didn't think we would qualify for this program. Thanks to your team we not only qualified, we will also make up for our shortfall from our last 2 years of little activity in our Donor Campaigns."
Medical Facility - FL
"As an essential business there was no thought to applying for the Employee Retention Credit program. Once we explored all of the various companies providing the same service, we knew we made the right decision when they asked to speak with our in-house legal department first, not just pushing a contract."
Tech Firm - NY
"Our CPA said we did not qualify because we broke even in 2020 and made money in 2021 even though we had to change our entire business. When we spoke with Economic Recovery we found out that we qualified and had ERC available above our 2 PPP grants, we were amazed. They understand this program inside and out."
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