Industries

Leisure, Hospitality & Tourism

If you own a business in the leisure and hospitality industry, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.

Businesses in the leisure and hospitality industry were heavily restricted during the COVID-19 pandemic. Government mandates to keep limits on capacity, social distancing, or even full-on shutdowns made it difficult for these businesses to stay afloat and operate comfortably. Thankfully, many of these leisure and hospitality businesses may be eligible for the Employee Retention Credit (ERC), part of the 2020 CARES Act, which can provide up to $26,000 per employee for already paid wages.

If you are the owner of a leisure or hospitality business, speak with an experienced certified public accountant at Strategic Tax Planning. You can call us for a free consultation at (202) 455-6010 or fill out this contact form, and we will reach back out to you.

How Do I Know If My Business Is Eligible for ERC?

Many business owners in the leisure and hospitality industry wonder if their business may be eligible for ERC. Typically, if you have W-2 employees, your business must fall into at least one of the two following categories:

  • Your business(es) experienced decreased revenue during quarters 1-4 in 2020 and 1-3 in 2021, compared to 2019
  • Your business(es) suffered from any number of government-mandated restrictions

Government mandated restrictions may include things like partial or full shutdowns only to reopen with reduced operating hours, restrictions on public gatherings (e.g., wedding receptions, concerts, festivals), capacity limitations, various dining restrictions on table spacing and /or buffet services for example, and an adjustment of hours to maintain sanitation requirements, among other things. 

On top of this, many business owners may think receiving the Paycheck Protection Program (PPP) loan in 2020 and 2021 disqualifies them from ERC. This is not the case. Regardless of if you received PPP 1 and/or 2, you may be eligible for ERC.

If you wonder about your leisure or hospitality business’ ERC eligibility, consult with an experienced certified public accountant (CPA). Speaking with a tax professional can help you to get a better understanding of ERC and your eligibility.

What Kind Of Leisure & Hospitality Businesses Qualify?

With the leisure and hospitality industry being so large, you may wonder if your business is included. Businesses in this industry that may have experienced profit loss or mandated restrictions include, but are not limited to:

  • Accommodation, including hotels and motels
  • Amusement, gambling, and recreation industries
  • Food services and drinking places
  • Museums, historical sites, and similar institutions
  • Performing arts, spectator sports, and related industries
  • Tourism businesses

When Can I Expect To Receive The Employee Retention Credit Refund?

Business owners who have filed for ERC may be wondering when they can expect to receive the tax credit. With so many businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is unique and will have a different timeline. Your refund may be processed in about 8 months, although it could take longer. 

If you wish to check the status of your refund, you may use the “Where’s My Refund?” feature on the IRS website, or you can call the IRS.

Find a CPA Firm You Can Rely On For Your ERC Claims

For owners of leisure, tourism, and hospitality businesses, ERC can be a great financial relief, but it is important to make sure you and your tax planners are diligent and thorough when examining your eligibility. It is critical to note that the IRS will carefully examine your claim for this credit. Submitting an ERC claim with false information can lead to compliance risks such as ERC audits in the future, setting up a potential disaster.

Strategic Tax Planning’s experienced tax professionals and CPAs will work closely with you and your leisure or hospitality business, ensuring all of your ERC qualifications and facts are accurate and in order. We are here to help you receive your deserved relief for persevering during difficult financial times. 

If you are the owner of a leisure or hospitality business and wonder if you may be eligible for ERC, reach out to Strategic Tax Planning for a free consultation with a licensed CPA. You can call us today at (202) 455-6010 or submit your information in our contact form, and we will call you. 

More Information

Industries We Have Helped to Claim
the Employee Retention Credit

Art Galleries

If your art gallery or art business was affected by a mandated suspension of operations or other restrictions, then you may qualify for the ERC.
LEARN MORE

Bowling Alleys, Arcades & Pool Halls

Arcades, bowling alleys, pool halls, or other "Fun Halls" impacted by the COVID-19 pandemic are likely eligible to receive the ERC.
LEARN MORE

Breweries, Distilleries & Wineries

If your brewery was affected by a mandated full or partial suspension of operations then you most likely qualify for the ERC.
LEARN MORE

Cannabis Industry

If you operate a business in the Cannabis Industry, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC due to mandatory closures of businesses.
LEARN MORE

Chambers

Chambers that paid their employees W-2 wages during the pandemic, and were impacted by the COVID pandemic in 2020 and/or 2021, are likely eligible to receive the ERC
LEARN MORE

Childcare & Behavioral Centers

If you operate a childcare or behavioral center, were impacted by Covid restrictions, and have W2 employees--you are likely eligible to receive ERC.
LEARN MORE

Construction Companies

If you own a Construction company, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
LEARN MORE

Doctors & Medical Industry

Prosthodontists, chiropractors, plastic surgeons, and others are often eligible if a suspension of operations prevented you from performing elective procedures.
LEARN MORE

Entertainment

Generally eligible based on shutdowns and other capacity restrictions for doing business. Frequently eligible because of decline in receipts.
LEARN MORE

Gyms & Fitness

Was your gym, fitness center, or health-related business impacted during the COVID-19 pandemic, and do you have W2 employees? you are likely eligible to receive ERC.
LEARN MORE

Law Firms

Potentially eligible if they experienced partial suspension in operations resulting from an order closing the courts and restricting operations.
LEARN MORE

Leisure, Hospitality & Tourism

If you own a business in the leisure and hospitality industry, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
LEARN MORE

Non Profit Organizations

Nonprofits impacted by COVID-19 restrictions that have W-2 employees are most likely eligible to receive the Employee Retention Credit (ERC).
LEARN MORE

Portfolio Companies

If you own a portfolio company, were impacted by Covid restrictions, and have W2 employees--you may be eligible to receive ERC.
LEARN MORE

Private & Parochial Schools

If you operate a business in the education industry, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
LEARN MORE

Restaurants & Bars

If you operate a restaurant or bar, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
LEARN MORE

Retail Stores

Retail shops impacted by COVID-19 restrictions that have W-2 employees may be eligible to receive the Employee Retention Credit (ERC).
LEARN MORE

Spas, Salons & Beauty Schools

If you own a cosmetology business, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
LEARN MORE

Startup Businesses

Any business that started after February 15, 2020, with less than $1 million in gross receipts, may be eligible as a Recovery Startup Business for the ERC.
LEARN MORE

Vending Machine Industry

If you own or distribute vending machines, were impacted by COVID-19 restrictions, and have W2 employees--you are likely eligible to receive ERC.
LEARN MORE