Industries

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.

As a restaurant or bar owner, you know that managing your finances is an important part of keeping your business running. However, the COVID-19 pandemic has made that much more difficult, causing significant challenges for the food industry, such as restrictions on capacity and social distancing.

However, with the Employee Retention Credit, businesses like your own can receive significant relief for retaining employees during 2020 and 2021. This valuable tax credit could help to offset some of your business expenses as it could provide up to $26,000 per employee to restaurants and bars that meet certain criteria.

If you might be eligible for ERC, speak to an experienced Certified Public Accountant (CPA) at Strategic Tax Planning to understand the details about your eligibility and gain the maximum credit available to you. Call us for a free eligibility analysis at (202) 455-6010 or submit your information in our contact form, and we will reach out to you.

Does Your Restaurant or Bar Qualify for ERC?

As a common place for people to gather, restaurants and bars faced many restrictions due to the variety of government orders during the pandemic. Because of this, there are just as many ways to qualify for the Employee Retention Credit. That is why it is important to speak with tax professionals and CPAs to understand your eligibility. 

If your restaurant or bar experienced any of the following, you may be eligible for ERC:

  • Full or partial shutdown
  • Interrupted operations
  • Supply chain interruptions
  • Limited capacity to operate
  • Capacity limitations
  • Difficulty working with vendors
  • Reduced services or goods offered to guests
  • Decrease in hours of operation
  • Shifting hours to increase sanitation of the facility
  • Decrease in sales

While your restaurant or bar may have already received other aid in the past, such as Paycheck Protection Program (PPP) loans or RRF (Restaurant Revitalization Fund) grants, these do not disqualify you from obtaining relief from ERC. Your business can still claim this uncapped tax credit if you qualify.

What If Your Restaurant or Bar Had Increased Sales in 2020 and 2021?

With all the government mandates restricting operations and interrupting supply chains, many restaurants and bars made less money in 2020 and 2021 than usual. However, it may still be possible that your business experienced an increase in revenue during this time. 

Fortunately, restaurants and bars that received an increase in revenue may still be eligible for ERC if the business was affected by a number of government-mandated restrictions. Speaking with a Certified Public Accountant will help you understand if this kind of qualification applies to you.

How Long is the ERC Refund Processing Timeline?

Business owners who have previously submitted their claims for the Employee Retention Credit are likely curious about the anticipated timeline for receiving the tax credit. Given the significant impact of the pandemic on numerous businesses, the IRS faces a substantial workload in processing these applications.

The timeline for each case varies. While it is possible to get your refund processed within 8 months, it could potentially take longer. 

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

Find a CPA Firm You Can Trust

Claiming the Employee Retention Credit can be a relief for restaurants and bars as it provides a tax credit to help cover wages paid during the pandemic. However, it is important to note that claiming this credit requires careful attention to the eligibility requirements and accurate reporting. The IRS scrutinizes eligibility claims to ensure they are legitimate, and submitting an erroneous claim can lead to audits and other issues.

To avoid these problems and ensure that your business receives the relief you deserve, it is essential to seek professional assistance. Strategic Tax Planning has experienced CPAs who will work closely with you to ensure that all qualifications are met and all facts are accurate. This can help businesses navigate the complex rules surrounding the ERC and avoid costly mistakes.

If you own a restaurant or bar and are uncertain about your ERC eligibility, reach out to Strategic Tax Planning for a free assessment. You can call us today at (202) 455-6010 or submit your information in this 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.
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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.
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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.
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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.
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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
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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.
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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.
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Doctors & Medical Industry

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

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

Potentially eligible if they experienced partial suspension in operations resulting from an order closing the courts and restricting operations.
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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.
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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).
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Portfolio Companies

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

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