Are Gyms Eligible for Employee Retention Credit (ERC)?

Key Takeaways

• Gyms and fitness centers are eligible for the Employee Retention Credit (ERC) if they meet certain criteria related to the COVID-19 pandemic.

• To qualify, gyms must have experienced a significant decline in gross receipts or been subject to government-mandated full or partial shutdowns.

• The ERC can amount to up to $7,000 per employee per quarter, providing substantial financial support to eligible gyms.

• Common misconceptions about the ERC can prevent gym owners from claiming the credit they deserve.

• We at ERTC Express can guide gym owners through the complexities of the ERC, ensuring they maximize their potential benefits.

Are Gyms Eligible for Employee Retention Credit (ERC)?

Gyms and fitness centers qualify for the Employee Retention Credit (ERC), providing essential support to keep staff employed amid the COVID-19 pandemic’s challenges. This credit serves as a crucial aid, allowing such businesses to endure the financial strain during these tough times.

Two main criteria determine eligibility: a significant reduction in gross receipts compared to 2019 or experiencing government-mandated limitations on operations. A “significant reduction” means a quarterly revenue drop below 50% in 2020 or 80% in 2021, compared to the same quarter in 2019. Notably, gyms and fitness centers facing operational constraints, such as reduced capacity due to government directives, also meet the criteria for partial suspension.

Incorporating additional considerations, gyms and fitness centers were also impacted by specific government-imposed restrictions, such as:

• Cleaning or sanitizing rules;

• Social distancing regulations and capacity rules;

• Stay-at-home orders;

• A disruption to the supply chain.

These measures highlight the wide range of disruptions gyms have navigated, making the ERC an indispensable financial relief mechanism.

Common Misconceptions about ERC Refund for Gyms

There’s a lot of confusion surrounding the Employee Retention Credit (ERC), leading many gym owners to miss out on valuable financial support. Let’s clear up some widespread myths:

1. Receiving a PPP loan means you can’t claim the ERC: This is incorrect. Although ERC cannot be claimed for wages already compensated by a forgiven PPP loan, it’s possible to claim for wages not covered by PPP.

2. The ERC is only for small businesses: A common misunderstanding. In reality, the ERC is available to businesses of all sizes, offering a lifeline to many.

3. The effort to claim the ERC isn’t worth its value: Many underestimate the ERC’s potential benefits, which can provide significant financial relief.

4. Only businesses that were completely shut down are eligible: Not true. Gyms partially shut down, such as those operating under capacity restrictions, are also eligible.

5. Believing a PPP loan disqualifies you from the ERC: This myth prevents many from seeking the ERC, despite eligibility for wages not covered by PPP.

Dispelling these myths is crucial for gym owners to understand the ERC’s full potential and secure the financial support necessary to sustain and grow their businesses in challenging times.

How ERTC Express Help Gyms Maximize ERC Benefits

We at ERTC Express offers a tailored service to help gym owners like you unlock the full potential of the Employee Retention Credit (ERC), ensuring you don’t miss out on crucial financial relief. By meticulously assessing your eligibility, based on the specific impact of COVID-19 on your business operations and revenue, we identify every opportunity for you to claim the maximum credit.

Step-By-Step Guide: How ERTC Express Helps Gyms Maximize ERC Benefits

At ERTC Express, we specialize in assisting gyms to navigate and maximize the Employee Retention Credit (ERC) benefits. Our goal is to ensure your fitness business secures every dollar it’s entitled to during these challenging times. Here’s our straightforward, three-step process:

Step 1: ELIGIBILITY
Initially, we at ERTC Express evaluate if your gym qualifies for the ERC. We thoroughly review your gym’s financial records and the impact of the pandemic on your operations, including any periods of reduced revenue or mandatory shutdowns. Our team of Account Executives will walk you through the entire application process, ensuring we have all the necessary documentation for submission. We’re here to provide additional information and answer any questions you might have along the way.

Step 2: PROCESSING
After establishing your eligibility, our dedicated team of CPAs and Customer Success Agents begins processing your claim immediately. To reduce the risk of an audit and ensure your claim’s defensibility, we implement our Power of 3 system. This unique approach involves the consensus of three separate CPA teams on the final credit amount before we submit your claim. This step is vital for accurately calculating the exact amount you can claim, based on the qualifying wages paid to your employees.

Step 3: RECEIVE YOUR FUNDS
The final step in our process is when you receive your funds. You will only be billed for our services after the funds have been disbursed to you, ensuring our success is directly tied to yours. Should there be any follow-up inquiries or additional documentation required by the IRS, we stand ready to support and guide you through the review process, ensuring you secure every dollar you’re entitled to.

By choosing ERTC Express for your ERC claim, you’re ensuring that your gym doesn’t miss out on this vital financial support. Our expertise not only simplifies the claiming process but also positions your fitness business to claim the maximum benefits available, allowing you to focus on what you do best—running your gym and supporting your community’s health and wellness. Reach out to us today, and let’s work together to maximize the ERC benefits for your gym.

Get Maximum Gyms Refund with ERTC Express to Get Maximum Gyms ERC Refund with ERTC Express.

Securing the maximum Employee Retention Credit (ERC) refund is essential for gym owners striving to maintain their operations and support their communities through these challenging times. ERTC Express is your dedicated partner in this journey, offering a combination of expertise, compliance assurance, and strategic support to ensure you claim every dollar you’re entitled to.

Why Gyms Trust ERTC Express:

• IRS Compliance: Our commitment to adhering strictly to IRS regulations ensures your ERC claim meets the highest standards of compliance, giving you peace of mind.

• Trusted by the AICPA: The endorsement by the American Institute of Certified Public Accountants (AICPA) signifies our dedication to excellence and the professional integrity of our services.

• U.S.-Based CPAs: Our team of U.S.-based CPAs brings specialized expertise to your ERC filings, adept at navigating the complexities of your claim to provide unparalleled assistance.

• Power of Three – Audit Defense: We enhance the defensibility of your claim with our Power of Three audit defense, involving three CPA teams’ unanimous agreement on your claim’s final credit amount before submission.

• Refund Maximization: Dedicated to ensuring you receive the full refund you deserve, our strategies frequently outperform those offered by large payroll and software companies by 40-120%, leveraging real CPA expertise over software estimations.

ERTC Express acts as your financial spotter, providing the support you need to navigate the ERC with confidence. We lift the burden of complex tax laws, allowing you to focus on keeping your gym operational and your community healthy. Don’t miss the opportunity to secure your gym’s financial future—reach out to ERTC Express and maximize your ERC benefits today.

Frequently Asked Questions (FAQ)

Can gyms claim ERC for wages paid in 2021?

Yes, gyms can claim the Employee Retention Credit (ERC) for wages paid in 2021. The ERC was extended and expanded under subsequent legislation, allowing businesses to benefit from this credit for wages paid through December 31, 2021. This extension includes increased credit rates and caps, making it a valuable financial relief option for gyms facing the ongoing impacts of the pandemic during this year.

How do gyms calculate their eligible wages for the ERC?

Gyms calculate their ERC based on qualified wages paid to employees during the affected periods, following specific limits on the credit amount per employee.

What evidence do gyms need to claim the ERC?

Gyms need to keep documentation of government orders affecting their operations, payroll records for qualified wages, and financial statements indicating a decline in gross receipts.

What should gyms do if they have already filed their taxes?

If gyms have already filed their taxes without claiming the ERC, they can still amend their payroll tax filings to claim the credit retroactively. This involves submitting revised forms, such as Form 941-X for federal payroll taxes, to correct any oversight and claim the ERC for eligible quarters. It’s advisable for gyms to consult with a tax professional or a service like ERTC Express to ensure accuracy and compliance in the amendment process.

Can gyms still apply for ERC if they have received a PPP loan?

Yes, gyms that have received a PPP loan are still eligible to apply for the ERC, provided the same wages are not used for both programs. The Consolidated Appropriations Act, 2021, and subsequent legislation clarified that businesses could benefit from both the PPP and the ERC, expanding financial relief options for those impacted by the pandemic. Gyms must carefully allocate payroll expenses to optimize their benefits across different relief measures.