The Employee Retention Credit exists to REWARD
employers who weathered the storm of covid regulations, found ways to adapt their business, and keep people employed. If that does not describe associations, I do not know what does.
Associations and nonprofits are often hesitant to take advantage of these types of programs and it is understandable - we are tax-exempt organizations. However, it is important to note that ERC is a payroll tax credit, which nonprofits are a part of. We all know the impacts COVID had on associations and they deserve the credit just as much as any for-profit business.
And just as importantly, Associations represent many industries and companies. Is your Association properly educating your members on this credit? If the industry you represent tends to have non-owner W2 employees (solopreneurs do not qualify), they need to hear about ERC and make an INFORMED decision on it. The IRS estimates 70-80% of U.S. businesses qualify.
Here are some VERY important things to note:
- ERC does NOT require a reduction in revenue
- There are 4 ways to qualify and they are each individual qualifiers (meaning it's not all or none)
- Many CPAs wrongly focus on just revenue reduction AND analyze it incorrectly
- The rules have changed several times and many operate on outdated information.
Make sure that you are working with a partner that ACTUALLY does ERC work. Many CPAs, etc. got burned out by PPP and EIDL and have not stayed up to date nor understand all the rules.
A regional apartment association filed for ERC through Lateral Solutions. It only had an executive director and still got $12,000. We did aa free webinar for their members (just 180 members) and 9 of their members filed and collectively received just under $3mm. That's an average of over $300k per company.
Reach out if you have any questions or are interested in a free webinar for your members. 30 Minute Meeting - Jon Bassford
Jon Bassford, CAE, MBA, JD
"Outsourced Solutions for Internal Operations"