Are Breweries & Distillers Eligible for Employee Retention Credit (ERC)?

Key Takeaways

• Breweries and distillers can qualify for the Employee Retention Credit (ERC), even if they didn’t experience a revenue loss in 2020 or 2021.

• To be eligible, a brewery or distillery must demonstrate that it was affected by government orders related to the pandemic or experienced a significant decline in gross receipts.

• Even if a business received a PPP loan, it could still be eligible for the ERC.

• There are specific criteria and steps to claim the ERC, which can provide substantial financial relief.

• Understanding common misconceptions about the ERC can help breweries and distillers take full advantage of this tax credit.

Are Breweries & Distillers Eligible for ERC Refund

Breweries and distillers are indeed eligible for the Employee Retention Credit (ERC) refund, based on certain criteria. If your establishment saw a significant decrease in gross receipts during any quarter compared to the same period in 2019, or if it was partially or fully shut down by government orders related to COVID-19, you might qualify.

To put it simply, a drop in your revenue by more than 50% in any quarter of 2020 or by 20% in 2021 compared to 2019, or any government-imposed restrictions like reduced operating hours, means you are eligible. This could cover up to 70% of qualified wages and certain health insurance costs, up to $10,000 per employee per quarter in 2021—up to $28,000 per employee for the year.

Breweries and distilleries in the U.S., have the potential to qualify for the ERC by showing either a considerable revenue loss or compliance with government shutdown orders, such as:

• Additional sanitization requirements;

• Social distancing restrictions;

• Capacity limitations;

• Supply chain disruptions.

By understanding these pathways, you can effectively pursue the ERC for substantial financial relief, helping you navigate the economic challenges presented by the pandemic.

Common Misconceptions about ERC Refund for Breweries & Distillers

Despite the potential benefits, there’s a lot of confusion out there. So let’s tackle some of the myths that might be stopping you from claiming what you’re entitled to.

1. Receiving a PPP loan disqualifies me from the ERC: Initially, this was accurate, but regulations have evolved. Now, recipients of PPP loans can also claim the ERC, provided they do not apply it to the same payroll expenses.

2. My business wasn’t hit hard enough to be eligible: You might qualify even without severe revenue losses. Eligibility can be based on business disruptions due to government mandates, not just on financial decline.

3. Navigating the ERC process is too complex: Although dealing with tax credits can be intricate, don’t let this discourage you. Expert assistance and dedicated tools are available to streamline the process.

4. It’s too late for me; I’ve already filed my taxes: It’s possible to amend previous tax returns to claim the ERC, so it’s not too late to explore this option.

5. The credit amount is too minor to make a difference: The ERC can be significant, offering up to $5,000 per employee for 2020 and more for 2021, making it a considerable financial aid for eligible businesses.

Dispelling these myths is crucial for understanding how the ERC can support your business during challenging times. With accurate information, you can make informed decisions and potentially secure vital financial support.

How ERTC Express Help Breweries & Distillers Maximize ERC Benefits

Now, let’s talk about a helping hand, ERTC Express. We are a service that specializes in guiding businesses like yours through the ERC claim process. Think of ERTC Express as your navigator through the complex tax credit terrain. We’re here to ensure you don’t miss out on any funds due to misunderstandings or paperwork errors.

Step-By-Step Guide: How ERTC Express Help Breweries & Distillers

At ERTC Express, we understand the unique challenges breweries and distilleries have faced during the pandemic. Here’s our dedicated three-step process to help you navigate and maximize your Employee Retention Credit (ERC) benefits, making what seems complex straightforward and effective.

Step 1: ELIGIBILITY
Initially, we at ERTC Express start by assessing if your brewery or distillery qualifies for the ERC. We meticulously review the pandemic’s impact on your operations, focusing on any fluctuations in gross receipts and governmental mandates that have influenced your business. Our team of Account Executives is here to guide you through the application process, ensuring we collect all necessary documentation for submission. Throughout this step, we’re readily available to provide additional information or answer any queries you might have, ensuring a smooth and informed beginning to your ERC journey.

Step 2: PROCESSING
Once eligibility is confirmed, our expert team of CPAs and Customer Success Agents promptly begins processing your filing. To diminish the risk of an audit and fortify the defensibility of your claim, we implement our exclusive Power of 3 system. This critical process involves the collaboration of three separate CPA teams, each concurring on the final credit amount before we submit your claim. This thorough approach guarantees that we accurately calculate the maximum credit you can claim, based on your payroll details and the specific impact COVID-19 has had on your operations.

Step 3: RECEIVE YOUR FUNDS
The culmination of our efforts arrives when you receive your funds. Notably, our billing model is directly linked to your success—you will only be invoiced after the funds have been disbursed to you. This ensures our objectives are perfectly aligned with your financial recovery, highlighting our commitment to partnering with you through every step of the process.

With ERTC Express guiding your brewery or distillery through the ERC claim process, you can focus on what you do best—crafting exceptional beverages. Our streamlined approach ensures you’re well-informed and supported throughout, from the initial eligibility assessment right through to the joyful moment of receiving your funds. Let us help you maximize every opportunity for financial recovery and growth. Reach out to us today, and let ERTC Express be the catalyst for your successful ERC claim

Get Maximum Breweries & Distillers Refund with ERTC Express to Get Maximum Breweries & Distillers ERC Refund with ERTC Express

Navigating the complexities of the Employee Retention Credit (ERC) to secure the maximum refund for breweries and distilleries is our specialty at ERTC Express. During these challenging times, our commitment to guiding you through the ERC claim process is unwavering, ensuring your business not only survives but thrives. Our approach is grounded in strict adherence to IRS compliance, providing a robust foundation for your claim and peace of mind knowing that every detail is meticulously handled according to the highest standards.

• IRS Compliance: Our rigorous dedication to meeting all IRS regulations and requirements ensures the highest level of compliance for your ERC claim.

• Trusted by the AICPA: ERTC Express is honored to be recognized by the American Institute of Certified Public Accountants (AICPA), affirming our commitment to excellence and the highest professional standards.

• U.S.-Based CPAs: Our team comprises U.S.-based CPAs with specialized expertise in ERTC filings, equipped to navigate the complexities of your claim with unparalleled assistance.

• Power of Three – Audit Defense: Our unique audit defense strategy involves the collaboration of three separate CPA teams to verify the accuracy of your claim before submission, enhancing its defensibility.

• Refund Maximization: We are committed to ensuring you receive the full refund you deserve. Our strategies often result in refunds exceeding those obtained through large payroll and software companies by 40-120%, thanks to our reliance on the expertise of real CPAs.

The ERC represents a critical financial lifeline for breweries and distilleries, mitigating the economic impacts of the pandemic and enabling the continuation of your exceptional craft. Partnering with ERTC Express allows you to seamlessly integrate this tax credit into your financial strategy, focusing on what you do best—brewing and distilling. Our goal is to ensure you receive the full refund you are entitled to, far surpassing the industry standard and reinforcing the financial stability of your business. Reach out to ERTC Express today, and let’s embark on this journey together, maximizing every benefit the ERC has to offer your brewery or distillery.

Frequently Asked Questions (FAQ)

Can breweries and distillers apply for the ERC?

Breweries and distillers are eligible for the ERC if their operations were impacted by government restrictions or if they saw a significant decrease in gross receipts.

What makes breweries and distillers eligible for the ERC?

Eligibility is based on evidence of operational disruptions due to government orders or a noticeable reduction in gross receipts when compared to 2019 levels.

How do breweries and distillers calculate the ERC?

They calculate the ERC based on the qualified wages they paid to employees during the affected quarters, adhering to the per-employee and per-quarter wage limits.

Are small craft breweries and artisan distillers also eligible for the ERC?

Yes, small craft breweries and artisan distillers are eligible under the same conditions as larger companies, focusing on the impact of government orders or sales decline.

What documentation must breweries and distillers prepare for the ERC?

They should prepare documentation detailing how government orders affected them, payroll records to verify qualified wages, and financial records to prove a decrease in gross receipt.