Help Overcoming COVID’s Disruptions, Part 2
The disruption COVID wreaked on the wire harness industry was––and to some degree continues to be––substantial. And while the Payroll Protection Program (PPP) was well known and widely used by those in our industry, I want to make sure my colleagues are aware of another federal government program that can help offset some of the overhanging COVID pain: Employee Retention Credit (ERC).
Unfortunately, ERC was not well publicized and is not well understood. Many harness companies never heard of it, or they and their advisors have checked into it and concluded they are not eligible.
The Employee Retention Credit was part of the March 2021 legislation of the American Rescue Plan Act, whichexpanded and extended the ERC program and allows eligible employers to benefit from both the PPP and the ERC.
I recently became aware of a division of a well-known consulting firm whose total focus is helping companies navigate the complex rules for applying for ERC funds. They do this by using their own specialized software to put a dedicated infrastructure in place that is totally focused on the ERC application process. They have performed this service for many companies like ours, securing refunds as high as $26,000 per employee.
I have already put a number of harness owners in touch with this firm with exceptional results. All had heard of the ERC, but their initial investigation led them to conclude that they were not eligible.
The window on the ERC legislation is closing, but there’s still time to apply, and the program has ample funds in place. If your company has fewer than 500 employees, and if you have not applied for or received ERC funds, please let me know if you’d like me to help you get in touch with this firm.