Case Study J

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Client J, a restaurant, is entitled to a $122,470.18 refund check for the Employee Retention Credit. Due to a governmental order enforced by the state of New York, the restaurant was badly impacted during Covid-19 and was forced to close for almost five months in 2020. In addition to being closed, gross receipts dropped by more than 50% from the same quarter the previous year. Due to Covid-19, restaurant gross receipts decreased below 80% in 2021 compared to the same quarter the previous year.

We ran an Employee Retention Credit Service on wages paid to full time employees after March 12, 2020 to discover if any employee salaries qualified for the employee retention credit. Because these wages would not qualify, we took into account any Payroll Protection Program loans and forgiveness over the time period. Client J is eligible for a refund check from the IRS in the amount of $122,470.18 for the employee retention tax credit.