Industries

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.

Often forgotten among the Employee Retention Credit (ERC), the vending machine industry was heavily impacted by the COVID-19 pandemic. With capacity mandates and other government-imposed operations restrictions, many vending machines saw a decrease in sales due to less foot traffic. Some machines may have even been located in areas that had no access permitted. Thankfully, vending machine owners may qualify for the ERC, part of the 2020 CARES Act, which can provide relief of up to $26,000 per employee for already paid wages. 

If you are the owner of a vending machine business and have at least one full-time W-2 employee, then you may be eligible for ERC. Speak with a qualified Certified Public Accountant (CPA) at Strategic Tax Planning today to learn more about ERC and if your vending machine business may be eligible. Call us for a free consultation at (202) 455-6010 or fill out our brief contact form, and we will reach out to you. 

How Do I Know If My Vending Machine Business Qualifies For the ERC?

Every vending machine business is unique and experienced different circumstances during the COVID-19 pandemic, so it is important to consult with an experienced CPA or tax professional about your business’s eligibility. If you own or distribute vending machines, have W-2 employees, and were impacted by a COVID restriction, then you most likely qualify for the ERC program.

To be eligible for the ERC, your business typically has to fall into at least one of the two following categories:

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

Examples of government mandates affecting your business may include, but are not limited to:

  • Supply chain disruptions
  • Sanitation requirements
  • Limited access to locations in order to restock machines

What If My Vending Machine Business Had Increased Sales in 2020 and 2021?

With many supermarkets, convenience stores, or other food and beverage retailers experiencing their own restrictions and odd hours, it is possible that your vending machine business had an increase in sales during the COVID-19 pandemic. Despite increased revenue, many of these vending machine businesses still experienced the hardships of the pandemic. Vending machines located in facilities (e.g. hospitals, schools, malls, etc.) that were affected by hourly or capacity restrictions may still be eligible for ERC due to these mandates.

If your vending machine business saw an increase in sales but was affected by a government mandate, reach out to a qualified CPA to learn more about your ERC eligibility.

How Long is the ERC Refund Processing Timeline?

Business owners who have already filed for Employee Retention Credit are probably wondering when they can expect to receive the tax credit. With such a large number of businesses being affected by the pandemic, the IRS has a high volume of applications to process. Every case is different and will have a unique timeline. Your refund could be processed in about 8 months, although it may 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 With Your ERC Claims

Claiming the Employee Retention Credit can be a needed relief for many vending machine owners and distributors, 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 a claim with falsified 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 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 a vending machine owner or distributor and wonder if you may be eligible for the ERC, reach out to our team at Strategic Tax Planning for a free consultation. 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.
LEARN MORE