Gyms & Fitness

Was your gym, fitness center, or health-related business impacted during the COVID-19 pandemic, and do you have W2 employees? you are likely eligible to receive ERC.

How we help

Gyms, fitness centers, and other health-related businesses were one of the biggest industries to be affected by the COVID-19 pandemic. With partial or full shutdowns, capacity limits, and the need to intensify sanitation procedures, many of these businesses found it difficult to stay afloat. Fortunately, many of these businesses may qualify for the Employee Retention Credit (ERC), part of the 2020 CARES Act, which can provide a significant cash benefit for already paid wages.

If you are the owner of a gym or fitness establishment and wish to discuss your ERC eligibility with an experienced Certified Public Accountant, reach out to Strategic Tax Planning. You can call us today for a free consultation at (202) 455-6010 or fill out our contact form, and we will reach out to you.

Is My Gym Eligible For The ERC?

Many owners of fitness establishments and gyms wonder if their own businesses may be eligible for ERC. Generally, if you have W-2 employees, then your business must fall into at least one of the following two categories:

  • Your business(es) experienced decreased revenue during quarters 1-4 and 1-3 in 2020 and 2021, respectively, compared to 2019
  • Your business(es) suffered from government-mandated restrictions

Government-mandated restrictions may include things like partial or full shutdowns, social distancing requirements, restrictions in services provided (e.g., tanning bed, sauna, jacuzzi, or pool closures), and increased sanitization procedures, among many others.

On top of this, a lot of gyms and fitness centers may have received the Paycheck Protection Program (PPP) loans in 2020 or 2021 and wonder how that affects their ERC eligibility. Regardless of whether you received PPP 1 and/or 2, you may be eligible for ERC. Speaking with an experienced certified public accountant can help you to better understand your own business’ eligibility.

How Long is the ERC Refund Processing Timeline?

Business owners who have claimed the Employee Retention Credit may be wondering when they can expect to receive the tax credit. With so many businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is unique and will have a different timeline. Your refund could be processed in about 8 months, although it may take longer. 

If you wish to check the status of your refund, you may call the IRS, or use the “Where’s My Refund?” feature on the IRS website.

Find a CPA Firm You Can Trust With The ERC

For many gyms and fitness centers, ERC can be a great financial relief, but it is important to make sure you and your tax planners are diligent and thorough when examining your eligibility. It is critical to note that the IRS will carefully examine your claim for this credit. ERC claims with inaccurate information can lead to compliance risks such as ERC audits in the future, setting up a potential disaster.

Strategic Tax Planning’s experienced tax professionals and CPAs will work closely with you and your business, ensuring all of your ERC qualifications and facts are accurate and in order. We are here to help you receive your deserved relief for persevering during difficult financial times. 

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How We Help Businesses Receive the ERC
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Identify Eligibility

We analyze your business to determine if you qualify for the Employee Retention Credit.

Compile Documentation

We will help your gather the essential documentation as comprehensive support for your ERC claim.

Optimize Strategy

Our team will develop a tax planning strategy that optimizes benefits for your unique situation.

Ensure Compliance

We will mitigate your risk by ensuring you stay compliant with regulatory guidelines.

Expert guidance for your every tax move

Meet our Tax Professionals

Managing Director
Director of R&D Tax Credits
Tax Consultant
Senior Tax Research Consultant

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