The owner of a home care franchise didn't think his business qualified for COVID relief. One call to a special tax consultancy proved otherwise.

BOCA RATON, FL, USA, October 27, 2022 /EINPresswire.com/ -- When Dr. Ehimemen Iboaya of Carrboro, NC, first thought about applying for the Employee Retention Credit, he wasn’t sure anything would come of it. He owns and operates a Visiting Angels Home Care franchise, which provides in-home companionship and services for seniors. While his revenues had been impacted by COVID-19 over the last two years, the effects weren’t as devastating as other industries had experienced.

He was shocked, then, when ERC Benefits said his business could recoup a great deal of money from the IRS.

The Employee Retention Credit allowed Dr. Iboaya to claim as much as $26,000 per W-2 employee in a payroll tax refund from the IRS. ERC Benefits’ "knowledge of home health care agencies and how they were directly affected was instrumental in qualifying our business" for this money, Iboaya says.

Out of all the businesses impacted by COVID-19, one might expect home health care agencies to be least affected. In reality, they were some of the hardest hit–not necessarily in profits, but in other ways. The government failed to classify home health aides as essential workers, making it extremely difficult for them to source protective gloves and masks. Many became sick with COVID and had to quarantine for extended periods without hazard pay. Managers took on excruciating workloads as they scrambled to develop COVID mitigation procedures and training programs for staff.

Researchers estimate that home health agency revenues declined about 20% in 2020. While that isn't enough to qualify under the ERC's Reduction-in-Revenue Test for 2020, it is enough to qualify under the Government-Imposed Order Test.

Per the IRS guidelines, if a business experienced more than a nominal impact (defined as more than 10%) to its operations due to a government-imposed order, then it will qualify for the ERC. A government-imposed order can include a shutdown, partial closure, capacity or gathering restriction, or supply chain issue. Even better news is that the 2021 American Rescue Plan Act (ARPA) enhanced the original ERC program with easier-to-qualify guidelines and a significant increase in the overall credits available.

Ordinary CPAs, however, may be unaware of the new benefits or how to file for them. That’s where an ERC consultant can help.

“Aside from a simple loss in revenue, there are several paths to qualification that small businesses can pursue,” says Jay Feilen, Chief Revenue Officer at ERC Benefits. “Because we specialize in filing for this benefit, we can help owners claim every penny the law says they’re entitled to, even if they’ve received PPP loans or other kinds of assistance.”

“It’s our privilege to help these small businesses find relief after a tough few years,” Feilen says.

The Employee Retention Credit officially expired on September 30, 2021. However, small businesses can apply retroactively for the 2020 ERC through April 15, 2024, and for the 2021 ERC through April 15, 2025, as long as funds remain available. Small business owners interested in applying should contact ERC Benefits at 561-680-4677 or visit ercbenefits.com to determine eligibility.

Steven Ivans
ERC Benefits
+1 561-680-4677
steve@ercbenefits.com
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