ERC for Breweries

Breweries faced challenges during the pandemic, with closures and limited capacities, social distancing rules, and in some cases, the requirement to provide food along with drinks. Despite the struggles, there is still an opportunity for breweries to receive cash relief through the Employee Retention Credit (ERC), a refundable employee payroll tax credit.

The Employee Retention Credit (ERC) presents a significant opportunity for relief to businesses affected by the COVID-19 pandemic, with the potential for up to $26,000 per employee during the years 2020 and 2021. Eligibility for the ERC can be determined by actual closures, restrictions imposed by government orders, or by demonstrating a reduction in gross receipts of 50% or a 20% decline in gross receipts for specific quarters in 2020 and 2021, compared to the same quarters in 2019. It is important to note that the ERC can still be accessed even if a business has already received PPP loans, and newly established businesses after February 2020 may qualify for up to $100,000 in refundable credits in 2021 under specific ERC provisions.

The ERC remains available now, even if other pandemic relief forms are not replenished by Congress. Government restrictions have impacted various business operations in the brewing industry, and you could be one of the many employers entitled to substantial cash benefits. Don't miss out on the opportunity to see if you qualify for the ERC. Contact us to find out.