Unlocking the Benefits of the Employee Retention Credit

Dale J. Venturini
President/CEO, RI Hospitality Association

As we navigate the complexities of hospitality’s business landscape in the wake of the COVID-19 pandemic, supply chain issues, rising costs and staffing shortages, it is imperative that we stay informed about every opportunity that can help our businesses not only survive but thrive.

To that end, I'd like to shed light on a crucial financial incentive that has been extended to businesses like yours: the Employee Retention Credit (ERC).

The ERC was established to support businesses impacted by COVID-related restrictions. Recognizing the vital role that small businesses play in our local and national economies, the federal government is motivated to ease the financial burden caused by the pandemic. While this is encouraging, it's essential to realize that the ERC's availability might be time-limited, underscoring the urgency of taking advantage of it now.

At its core, the ERC is not just another tax deduction—it's a credit that directly reduces the total taxes owed to the IRS, which translates to real savings for your business. Once approved, you won't need to worry about paying it back in the future. The landscape of ERC laws can be tough to navigate, and recent updates have only added to the complexity. Surprisingly, many certified public accountants (CPAs) are still catching up with these changes. To ensure your success, our recommended partner, Adesso Capital, specializes in ERC applications and can help you secure the maximum refund possible. Their team of experts is well-versed in the intricacies of the ERC and can guide you through the application process to make it as seamless as possible.

In the maze of information circulating about ERC, misinformation abounds. One common misconception was that businesses had to choose between the ERC and other federal funds like the Paycheck Protection Program (PPP) loan. Fortunately, this is no longer the case due to changes in the CARES Act. You can still qualify for the ERC even if you’ve already received federal funds like a PPP loan.

The potential benefits of ERC are substantial. While you can qualify for up to $26,000 per employee, real-world cases have shown Adesso clients securing refunds of up to $150,000. The difference it can make to your business is undeniable, and it's certainly worth investigating whether you qualify, especially since determining your eligibility is a straightforward process that takes only three minutes.

A distinctive advantage of the ERC is its retroactive nature. This means that if you meet the criteria, you could be eligible for a refund or credit on your next tax bill. The path you choose depends on your specific circumstances, so consulting Adesso's experts is crucial in understanding your options.

So, who can qualify for this credit? If you own a US-based business with 1 to 500 full-time employees, retained at least two non-family member employees on payroll in 2020 and 2021, and have experienced partial or full shutdowns, reduced operations, or revenue decline from previous years, you could be eligible.

Our collaboration with Adesso Capital has already helped numerous businesses like yours secure substantial ERC funds. Adesso's experienced team of CPAs are ERC experts, well-equipped to evaluate your eligibility and guide you through the necessary paperwork, ensuring a streamlined and successful application.

The road to post-pandemic recovery is paved with opportunities like the ERC. By partnering with experts, understanding the nuances, and making informed decisions, you can secure a brighter financial future for your business. In these uncertain times, the ERC can provide a much-needed boost to your bottom line, and I urge you to explore its potential.

Stay resilient, stay informed, and let's thrive together.

For more on RIHA’s partnership with Adesso Capital, please visit: