More than 100,000 small businesses have closed forever as the nation’s pandemic toll escalates.
This callout from the Washington Post is daunting for still-struggling businesses, especially as we gear up for a potential second wave, but there is some help available today.
Government relief programs exist for businesses—across all industries—to help mitigate risk and losses due to COVID-19. To benefit from them you need to know what they are (get the full list here from the IRS) and how best to take advantage of them, which we’ll cover in today’s post.
We teamed up with our partner Walton to debrief the latest tax relief plans to give you a head start. In 2019, our mutual customers have saved an estimated $15MM in Work Opportunity Tax Credits (WOTC). Their tips can help save you money and protect the health of your business.
As noted, the programs are open to all industries, but the top industries disrupted by the pandemic are consumer retail and nonessential retail, travel and tourism, sports and entertainment, energy and oil, and automotive. So, if you fall into one of these categories, you are going to want to check this out.
1. Coronavirus Aid, Relief, and Economic Security Act (CARES ACT): The new act passed by Congress in March provides economic assistance for workers and families as well as small business owners. For small businesses, the CARES Act is a payroll relief program for those affected by COVID-19. The program allows small businesses to maintain payroll, hire back employees, and cover applicable overhead. Employers can receive up to $5,000 in refundable payroll tax credit. (Learn more about the Retention Tax Credit Opportunity)
2. Disaster Relief Credit: From 2018-2019 the U.S. experienced 29 natural disasters. This program helps businesses who were impacted to financially recuperate from what they have lost as a result of the disaster. Businesses that retained employees during one of the 29 natural disasters are entitled to claim a tax credit equivalent up to $2,400 per eligible employee. Disaster Relief Zones include select counties within California, Texas, Florida, North Carolina, South Carolina, Georgia, Ohio, Oklahoma, Alabama, Mississippi, Indiana and other states and U.S. territories. (Learn more about Disaster Relief for Recent Hurricane Areas).
3. WOTC: This popular program provides valuable tax credits to businesses that hire and retain select individuals that face barriers to finding employment. The amount employers can claim depends on the target group of the individual hired as well as the wages paid to that individual, and the number of hours that individual worked during the first year of employment. While many organizations file for credits under the program, the administrative burden hinders businesses from participating surmounting in billions of dollars in potential savings lost. Walton’s proven WOTC solution helps companies uncover those savings. (Get info about Walton’s WOTC Solutions).
Walton can assist you in understanding the details of these programs and help to determine if you qualify for a relief credit. Walton will also track the wages/healthcare costs, continue to monitor program updates and changes, and report back the credit you deserve. (Learn more about Walton).
To discover more insights on tax relief programs, check out Walton’s recent webinar, “Overview of Relief Programs available to employees during COVID-19 Pandemic.”
With a passion for life-long learning, Danielle McClow got her start in higher education before joining iCIMS as a Content Writer. She holds an advanced degree in classic rhetoric and when not writing she wishes to pet all the dogs.