Are Nail Salons Eligible for Employee Retention Credit (ERC)?

Nail Salon
Unlocking Eligibility: Employee Retention Credit for Nail Salon Staff

Key Takeaways

  • Nail salons impacted by the pandemic may qualify for the ERC, a tax credit aimed at helping businesses keep their employees on the payroll.

  • The credit is not a loan—it’s a refundable tax credit that can be claimed against certain employment taxes.

  • Eligibility for the ERC requires that businesses meet specific criteria related to the impact of COVID-19 on their operations.

  • Common misconceptions, such as believing that only large businesses qualify or that receiving a PPP loan disqualifies you, can prevent nail salons from claiming deserved credits.

  • Professional services like ERTC Express can assist nail salon owners in navigating the complexities of the ERC claim process.

Are Nail Salons Eligible for ERC Refund

Most importantly, let’s clarify that many nail salons are indeed eligible for the ERC. The credit is designed to support businesses that have been financially impacted by the pandemic. If you’ve kept staff on the payroll despite experiencing a decline in business or were forced to partially or fully suspend operations due to government orders, you could be in line for this refund.

Because the eligibility criteria can get a bit technical, here’s what you need to know in simple terms:

  • Your salon must have been in operation after February 15, 2020.

  • You should have experienced either a significant decline in gross receipts or been subject to full or partial suspension due to government orders related to COVID-19.

  • The credit applies to wages paid after March 12, 2020, and before January 1, 2021, for the 2020 credit, and after January 1, 2021, and before October 1, 2021, for the 2021 credit.

It’s also worth noting that this is not a one-size-fits-all situation. The specifics can vary based on your salon’s unique circumstances, so it’s crucial to assess your individual case or seek professional help to ensure you’re not leaving money on the table.

Several government regulations affecting nail salons include:

  • Strict protocols for sanitizing and disinfecting tools and surfaces;
  • Implementation of social distancing and a reduction in the number of clients allowed simultaneously;
  • Orders for temporary closures or adjustments in service hours;
  • Prohibition of specific services to adhere to health directives;
  • Difficulties in obtaining necessary protective gear and cleaning supplies due to disruptions in the supply chain.

Common Misconceptions about ERC Refund for Nail Salons

Now, let’s tackle some of the myths that might be keeping you from claiming your ERC refund. Misinformation can be a significant barrier, and I want to make sure you have the facts straight.

  1. Only large businesses qualify for the ERC: This is not true. Businesses of all sizes, including small businesses like nail salons and hair salons, can qualify for the ERC if they meet the eligibility requirements, such as experiencing a decline in gross receipts or being subject to government-imposed restrictions.

  2. If you received a PPP loan, you can’t get the ERC: This is not true. Businesses that received a Paycheck Protection Program (PPP) loan can also qualify for the ERC, provided they do not use the same payroll expenses for both the PPP forgiveness and the ERC. This change allows businesses to benefit from both programs simultaneously.

  3. The process is too complicated and not worth the effort: This is not true. While the ERC application process may seem complex, the potential financial benefits make it a worthwhile endeavor for nail salons. Professional assistance from a tax expert or accountant can simplify the process and help businesses maximize their ERC refund.

  4. The ERC is only for businesses that have completely shut down: This is not true. The ERC is available to businesses that have either fully or partially shut down, experienced a significant decline in gross receipts, or were impacted by government-imposed capacity restrictions. This includes nail salons that had to adjust operations due to pandemic-related health and safety guidelines.

  5. You must repay the ERC eventually: This is not true. The ERC is a refundable tax credit, not a loan, which means businesses do not need to repay the amount they receive. If the credit amount is greater than the owed payroll taxes, the excess is refunded to the business, offering a direct financial support mechanism during challenging times.

Each of these statements is false. The ERC is available to businesses of all sizes, including nail salons. You can still claim the ERC even if you received a PPP loan, although you can’t use the same wages for both programs. The process can be complex, but the financial benefit often outweighs the effort—plus, there are experts who can help. Partial shutdowns qualify, and the ERC is a refundable credit, not a loan, so there’s nothing to repay.

How ERTC Express Helps Nail Salons Maximize ERC Benefits

Understanding the ins and outs of the ERC can be overwhelming, especially when you’re busy running a salon. That’s where ERTC Express comes in. We specialize in helping businesses like yours navigate the complexities of the ERC. We take the burden off your shoulders, handling the entire process from eligibility assessment to filing the claim, ensuring you get the maximum refund you’re entitled to.

One of your top priorities should be to maximize the benefits you receive from the ERC. This means not just claiming the credit but ensuring you’re claiming the full amount possible. To do this, you need to understand the qualifying wages, the impact of other grants or credits you’ve received, and the specific periods for which you can claim the credit.

Step-by-step Guide: How ERTC Express Optimizes Your Refund

Let’s break down how ERTC Express can streamline the process for you:

ERTC Express Step-By-Step Guide
ERTC Express Step-By-Step Guide


At the start, our Account Executives will dive into the unique aspects of your nail salon’s operations to determine eligibility for the ERC. This critical phase includes an in-depth analysis of how the COVID-19 pandemic has affected your salon, including any mandatory closures, reduced capacity orders, and the overall financial impact. We’ll ensure you gather all necessary documentation, such as payroll records and proof of government-imposed restrictions, relevant to your salon. Our Executives are always ready to offer additional support, clarifying any uncertainties and providing answers to your questions, ensuring you’re fully equipped with the knowledge needed for a successful application process.


Upon confirming your nail salon’s eligibility, our team of CPAs, specialized in handling ERC filings for businesses like yours, starts processing your claim with meticulous care. Our distinctive “Power of 3” system plays a crucial role here, involving three independent CPA teams that review and concur on the final credit calculation specifically for your nail salon. This rigorous approach minimizes audit risk and guarantees the defensibility of your claim, reflecting our commitment to accuracy and excellence. It’s a process designed to secure every dollar your nail salon is entitled to under the ERC program, handled by professionals familiar with the nuances of the beauty industry.


The culmination of our efforts is centered on your nail salon receiving the ERC funds. Our billing model is uniquely success-oriented, which means we only send our invoice after your salon has received its ERC refund. This policy ensures our services are risk-free for you and demonstrates our vested interest in the success of your nail salon. Once the IRS processes and approves your claim, we’ll guide you through the final steps to access your funds, completing our partnership with your salon’s financial health significantly bolstered by the ERC support we’ve successfully secured together.

With ERTC Express, you’re not just getting a service provider; you’re gaining a partner dedicated to your salon’s financial health.


Maximize Your nail Salon’s ERC Refund with ERTC Express

Get Maximum Nail Salons ERC Refund with ERTC Express

Partnering with ERTC Express means you’re working with a team that understands the nuances of the ERC and is committed to getting you every dollar you deserve. Their expertise is invaluable in this complex process.

  • IRS Compliance: We ensure your claim is fully compliant with IRS regulations, reducing the risk of errors or audits.

  • Trusted by the AICPA: As a trusted partner, we maintain the highest standards of professional conduct and expertise.

  • U.S.-Based CPAs: Their team consists of certified public accountants who are knowledgeable about U.S. tax laws and can provide personalized support.

  • Power of Three – Audit Defense: If the IRS has any questions about your claim, we’ll defend it at no additional cost to you.

  • Refund Maximization: Their goal is to maximize your refund, and we have a track record of success in doing just that for their clients.

Many businesses are unaware that we may be eligible for the Employee Retention Credit (ERC), a substantial tax relief opportunity. This includes a wide range of service providers such as nail salons. Qualifying for the ERC can provide a significant financial boost for businesses that have been impacted by COVID-19 and meet certain criteria.

Frequently Asked Questions (FAQ)

What Documents Do Nail Salons Need to Claim the ERC Refund?

To claim the ERC refund, you’ll need several pieces of documentation, including:

  • Payroll records showing wages paid to employees during the eligible periods.

  • Tax filings, such as your quarterly Form 941s.

  • Records of any shutdowns or declines in business due to COVID-19.

  • Proof of any PPP loans received and how the funds were used.

How Does ERTC Express Ensure Maximum Refund for Nail Salons?

ERTC Express ensures that nail salons receive the maximum refund by meticulously reviewing their financial records, identifying all eligible wages, and applying the latest guidance from the IRS. Their team of experts stays updated on any changes to the legislation, ensuring that every claim is optimized to its fullest potential. They analyze your quarterly revenue to pinpoint the exact periods of eligibility and cross-reference this with your payroll to maximize the credit for each qualified employee.

Can Nail Salons Claim ERC Refund for Previous Tax Years?

Yes, nail salons can claim the ERC refund for previous tax years. Specifically, for wages paid after March 12, 2020, and before January 1, 2021, for the 2020 credit, and wages paid after January 1, 2021, and before October 1, 2021, for the 2021 credit. The process involves amending past payroll tax returns, which ERTC Express can handle for you.

Is It Too Late for Nail Salons to Apply for an ERC Refund?

It’s not too late for nail salons to apply for an ERC refund. The key is to act quickly to meet the deadlines for amending tax returns. ERTC Express can expedite the process for you, ensuring that your salon doesn’t miss out on this valuable opportunity. They’ll provide a thorough assessment to determine your eligibility and handle all the necessary paperwork on your behalf.

How Can Nail Salons Use ERC Funds Effectively?

Once you receive your ERC funds, it’s important to use them strategically to support your business. Consider reinvesting in your salon by upgrading equipment, enhancing your service offerings, or investing in marketing to attract new customers. These funds can also provide a financial cushion that allows you to retain staff during slow periods, ensuring that you’re ready to meet demand as it returns. 

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