ERC for Daycare Centers

The COVID-19 pandemic has had a devastating impact on the childcare and behavioral center industry, causing billions of dollars in revenue losses. Despite facing mandatory closures and operational restrictions, many providers may still be eligible for the Employee Retention Credit (ERC), a fully refundable tax credit that can provide significant cash relief.

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.

While other forms of pandemic-related relief for the childcare and behavioral center industry may or may not be replenished, the ERC remains available at this time. If you operate a business in this industry, it is worth investigating your eligibility for the substantial cash benefits provided by the ERC. Don't miss out on this opportunity! Contact us today to see if your business qualifies for ERC.