The omicron variant of the coronavirus is one of the latest waves that humanity is experiencing. The virus has spread all around the globe instantly, which caused a sense of fear and trauma among the people. This has further led to new cases and lockdown extensions. However, this new variant is more contagious than the previous ones, and fully vaccinated people are also getting infected by this. Under this background, you may be wondering about the Covid impact ERC deadline to safeguard your business. Well, if that’s the case, then this blog is for you. Since the pandemic, the government has introduced various Covid relief packages, including the CARES Act, Consolidated Appropriations Act, and the American Rescue Plan. Several initiatives were also taken for the businesses which avoided laying off employees, such as the Employee Retention Credit. Although these were some of the spectacular measures by the government in one way or the other, these are impacted by the new omicron variant, and its significance may get hampered. It is, however, crucial for business owners to take advantage of such programs before the deadline. In this blog, we present you some of the vital details about the ERC, like what it is and how employers can be prepared to deal with the omicron variant and its impact on businesses.
Why Should You Apply For The Employee Retention Credit
This new omicron variant signifies new guidelines for American business owners. Here are some of the reasons to apply for the employee retention credit before the Covid impact ERC deadline:
Change In Deadlines Or Legislation
December 2021 is the deadline for the Employee Retention Credit. However, this could not change as the virus and its spread is unpredictable. If you want to reap the benefits, apply for the ERC as soon as further restrictions are added to the law. There are no assumptions right now regarding the deadline extension in 2022, so it’s better to take advantage of the credit now.
Continue With Your Business
With the employee retention tax credit, you can keep your employees on the payroll, and you don’t have to fire anyone. Against the omicron variant, this credit is very fruitful for your business. With this, you can get a potential of $5,000 per employee for the 2020 quarter and $28,000 per employee for the 2021 quarter.
Relief In The New Covid Precautions
For a safer workplace, you should implement mask requirements, sanitization use, vaccination mandates, and other such protocols. For this, you may require an additional PPE to follow the guidelines. Therefore, it’s better to get tax relief to focus on these expenses.
It’s better not to put off claiming the ERC, especially when the omicron variant is omnipresent and can cause a great amount of harm to your business in the long run. If you are dwelling on how to get started with this? Then talk to our tax experts now.
How Should Businesses Cope With The Omicron Variant?
This new virus is spreading rapidly; therefore, it’s better to be prepared if your business or community is unaffected by it. This omicron variant is the best example of how we cannot control what happens next. This is what the employers should do to continue their business and cope with the new variant.
Keep Your Employees On Payroll
You won’t continue taking advantage of tax relief measures such as the employee retention tax credit if you have to let your workers go. Instead, try to keep your workers on payroll to meet all the qualifications for such government programs.
Monitor Omicron Cases
Keep an eye on the rising omicron cases and the latest trend regarding the virus. For such latest updates, please pay attention to the news and your industry, what measures they are adopting and what new they are doing. It is always better to develop a robust communication process to keep your employees informed about your initiatives and what is happening around them.
The Q4 Season
The retailers and restaurants business may often surge in the Q4, especially during holidays. Try to retain your employees during these busier times by taking advantage of all the Covid relief programs you are eligible for.
Take Note Of The ERTC Deadline
You can apply for the Employee Retention Credit if you are eligible. It’s better to take advantage of the existing programs, as you don’t know which relief program will stay and which will go. You must have experienced complete or partial shutdowns because of the government orders, which lead to many business losses and other repercussions. For the ERC, businesses can claim it up to three years from filing their applicable return. Keep an eye on the changing legislation which could change the credit in the future.
Take Advantage Of Other Relief Programs
Apart from the ERC, there are other Covid relief programs you can apply to this year. For instance, the paycheck protection program (PPP) offers loans to qualifying businesses; however, the program ended in may 2021, it can always come back as the omicron variant continues. In addition, the Economic Injury Disaster Loan, the Shuttered Venues Grant, and the Restaurant Revitalization Fund are some of the relief measures by the government to help businesses during the time of Covid.
The scope of your business depends on whether you are claiming tax credits like the employee retention tax credit. Always remember that preparation can go a long way during the coronavirus pandemic. So you better be acting instead of waiting to see what happens with the new omicron variants or the new legislation.
CPA Due Diligence Is Here To Rescue You
Against the backdrop of this Covid outbreak, many business owners struggle with determining the eligibility for tax benefits or claim relief when they qualify. You don’t have to worry much regarding this because our tax experts provide you with the best professional help. CPA Due Diligence is well equipped with the ins and outs of the ERC and breaks everything down for you.
We help you get quick with the Covid impact ERC deadline and start with the application process with easy and flexible assistance. CPA Due Diligence provides consulting and application support, and we store your information in a safe and secure client portal. Start your ERC application today with CPA Due Diligence; for further information, visit our website.