Vending Machine Industry

If you own or distribute vending machines, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.

How we help

Often forgotten among the Employee Retention Credit (ERC), the vending machine industry was heavily impacted by the COVID-19 pandemic. With capacity mandates and other government-imposed operations restrictions, many vending machines saw a decrease in sales due to less foot traffic. Some machines may have even been located in areas that had no access permitted. Thankfully, vending machine owners may qualify for the ERC, part of the 2020 CARES Act, which can provide significant relief per employee for already paid wages. 

If you are the owner of a vending machine business and have at least one full-time W-2 employee, then you may be eligible for ERC. Speak with a qualified Certified Public Accountant (CPA) at Strategic Tax Planning today to learn more about ERC and if your vending machine business may be eligible.

How Do I Know If My Vending Machine Business Qualifies For the ERC?

Every vending machine business is unique and experienced different circumstances during the COVID-19 pandemic, so it is important to consult with an experienced CPA or tax professional about your business’s eligibility. If you own or distribute vending machines, have W-2 employees, and were impacted by a COVID restriction, then you most likely qualify for the ERC program.

To be eligible for the ERC, your business typically has to fall into at least one of the two following categories:

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

Examples of government mandates affecting your business may include, but are not limited to:

  • Supply chain disruptions
  • Sanitation requirements
  • Limited access to locations in order to restock machines
What If My Vending Machine Business Had Increased Sales in 2020 and 2021?

With many supermarkets, convenience stores, or other food and beverage retailers experiencing their own restrictions and odd hours, it is possible that your vending machine business had an increase in sales during the COVID-19 pandemic. Despite increased revenue, many of these vending machine businesses still experienced the hardships of the pandemic. Vending machines located in facilities (e.g. hospitals, schools, malls, etc.) that were affected by hourly or capacity restrictions may still be eligible for ERC due to these mandates.

If your vending machine business saw an increase in sales but was affected by a government mandate, reach out to a qualified CPA to learn more about your ERC eligibility.

How Long is the ERC Refund Processing Timeline?

Business owners who have already filed for Employee Retention Credit are probably wondering when they can expect to receive the tax credit. With such a large number of businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is different and will have a unique 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 Your ERC Claims

Claiming the Employee Retention Credit can be a needed relief for many vending machine owners and distributors, 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. Submitting a claim with falsified 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.

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