- Businesses can apply for the often-overlooked Employee Retention Credit, offered as part of the 2020 COVID relief package.
- “Next year, the money will begin to evaporate. Right now we can claim all of the money that businesses are entitled to, but starting next year, the funds will start getting eliminated.”
- Billions of dollars are sitting in a holding fund just waiting to be paid back to business owners for the payroll tax they paid during COVID.
With the holiday shopping season practically here, retailers will be hiring additional support to help with the busy season, if they have not already. This year, however, many may forgo this option as they work to keep costs down amid the looming recession. Despite the uneasiness, they can find some reprieve — with a little known tax refund.
Receive up to $26,000 Per Employee
Innovation Refunds, founded by Howard Makler, helps businesses apply for the often-overlooked Employee Retention Credit, offered as part of the 2020 COVID relief package. The company has a 100% success rate, resulting in 10,000 companies receiving over $1 billion dollars in refunds. This can greatly help brands who are in need of additional funds as we head into the busiest shopping season of the year.
“Unfortunately, very few have taken advantage of this program. We make it really simple and painless for a business owner to be able to access these funds. A typical client of ours would receive back $400,000, but the prize is worth up to $26,000 per employee. It really is lucrative for businesses and we make it very simple for them,” Makler said.
Now is the Time to Get Money Fast
The uniqueness of Innovation Refunds is that even though the Employee Retention Credit has already expired, they have a limited window where they can draw back these funds. Businesses can still retroactively apply for the funds for up to three years, and up until 2024. The program is calculated based upon employees that businesses had in 2020 and 2021, according to Makler. That means the refund amount is based upon the number of workers employed during the height of COVID.
“Next year, the money will begin to evaporate. Right now we can claim all of the money that businesses are entitled to, but starting next year, the funds will start getting eliminated,” Makler said. “Brands can still claim some money through the end of 2023, but the amount they can get back will be reduced. Through the end of 2022, businesses can receive up to the full amount of $26,000 per employee. Then in 2023, they will just be able to claim a smaller amount. This means that right now is the prime opportunity to get this money.”
Innovation Refunds is not the only organization helping businesses receive their COVID relief funds. AlliantGroup and ERC Expert also provide applications that companies can fill out to see if they qualify for a refund, and to receive those funds. All of these organizations receive the funds from the U.S. Treasury Department, and then pass on the money to businesses who apply.
How it Works
Just go to GetRefunds.com and fill out a short questionnaire that will take about five minutes. Then, businesses will need to provide Innovation Refunds with documentation similar to what was needed with the Paycheck Protection Program. Once your documents are loaded, everything is in Innovation Refunds’ hands and they will contact you once the money arrives.
“For businesses, right now, this is the most important unknown financial secret that they need to know about,” Makler said. “Last month, $225 million in payroll tax refunds were received by our clients — that is an enormous amount of money, and many business owners still do not know they are eligible to receive these refunds. It is a shame because billions of dollars are sitting in a holding fund just waiting to be paid back to business owners for the payroll tax they paid during COVID. This was a way of rewarding them for keeping employees on payroll and presents a tremendous opportunity for businesses.”
General Finance Tips
Makler recommends that when things get tough, it can be really easy to pull back and tighten the belt. However, he encourages businesses to continue to put time and money into growing their customer base. This is a time where brands cannot tighten their way out of the challenges we are all facing. Instead, spend as much energy as you can into figuring out different ways to grow and reach new customers. Every company is suffering and you have an opportunity to get-out-ahead of those that are being conservative and falling behind.
“This requires creativity, maybe going after a new customer base or changing how you structure compensation completely. Ask yourself what would motivate you if you were seeing your brand from the other side. Try to approach finding customers differently — it is not about doing business the same way you have been, but just changing something so you have a different way of attracting shoppers, maybe with different products or pricing. You are looking for changes that allow you to grow faster than you have been growing,” Makler said.