Restaurants & Bars

If you operate a restaurant or bar, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.

How we help

As a restaurant or bar owner, you know that managing your finances is an important part of keeping your business running. However, the COVID-19 pandemic has made that much more difficult, causing significant challenges for the food industry, such as restrictions on capacity and social distancing.However, with the Employee Retention Credit, businesses like your own can receive significant relief for retaining employees during 2020 and 2021. This valuable tax credit could help to offset some of your business expenses as it could provide up to $26,000 per employee to restaurants and bars that meet certain criteria.If you might be eligible for ERC, speak to an experienced Certified Public Accountant (CPA) at Strategic Tax Planning to understand the details about your eligibility and gain the maximum credit available to you.

Does Your Restaurant or Bar Qualify for ERC?

As a common place for people to gather, restaurants and bars faced many restrictions due to the variety of government orders during the pandemic. Because of this, there are just as many ways to qualify for the Employee Retention Credit. That is why it is important to speak with tax professionals and CPAs to understand your eligibility. 

If your restaurant or bar experienced any of the following, you may be eligible for ERC:

  • Full or partial shutdown
  • Interrupted operations
  • Supply chain interruptions
  • Limited capacity to operate
  • Capacity limitations
  • Difficulty working with vendors
  • Reduced services or goods offered to guests
  • Decrease in hours of operation
  • Shifting hours to increase sanitation of the facility
  • Decrease in sales

While your restaurant or bar may have already received other aid in the past, such as Paycheck Protection Program (PPP) loans or RRF (Restaurant Revitalization Fund) grants, these do not disqualify you from obtaining relief from ERC. Your business can still claim this uncapped tax credit if you qualify.

What If Your Restaurant or Bar Had Increased Sales in 2020 and 2021?

With all the government mandates restricting operations and interrupting supply chains, many restaurants and bars made less money in 2020 and 2021 than usual. However, it may still be possible that your business experienced an increase in revenue during this time. 

Fortunately, restaurants and bars that received an increase in revenue may still be eligible for ERC if the business was affected by a number of government-mandated restrictions. Speaking with a Certified Public Accountant will help you understand if this kind of qualification applies to you.

How Long is the ERC Refund Processing Timeline?

Business owners who have previously submitted their claims for the Employee Retention Credit are likely curious about the anticipated timeline for receiving the tax credit. Given the significant impact of the pandemic on numerous businesses, the IRS faces a substantial workload in processing these applications.

The timeline for each case varies. While it is possible to get your refund processed within 8 months, it could potentially 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

Claiming the Employee Retention Credit can be a relief for restaurants and bars as it provides a tax credit to help cover wages paid during the pandemic. However, it is important to note that claiming this credit requires careful attention to the eligibility requirements and accurate reporting. The IRS scrutinizes eligibility claims to ensure they are legitimate, and submitting an erroneous claim can lead to audits and other issues.

To avoid these problems and ensure that your business receives the relief you deserve, it is essential to seek professional assistance. Strategic Tax Planning has experienced CPAs who will work closely with you to ensure that all qualifications are met and all facts are accurate. This can help businesses navigate the complex rules surrounding the ERC and avoid costly mistakes.

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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.

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