Be Informed: ERTC
I get it, you are busy. You are trying to run your business in the midst of a global pandemic. You are doing your best to comply with new and oftentimes complex government regulations. You are simply trying to survive. I really do understand. Over the past year I have spoken with countless small business owners as they try to navigate this complex operating environment. Our conversations almost always revolve around the idea of being well informed. What government assistance programs are being offered? What are the eligibility requirements? What changes are taking place with the existing programs? What should I be worried about related to these programs? How can I best take advantage of the programs available to me? The list goes on and on. This is a wise approach given the uncertainty all small business owners face today.
Unfortunately, these individuals I spoke with may be in the minority. I recently came across a lengthy survey from NFIB that covered things like PPP, ERTC, and the economy. The results surprised me.
How familiar are you with the Employee Retention Tax Credit (ERTC)?
04% - Very familiar
32% - Somewhat familiar
65% - Not at all familiar
Are you planning to take the ERTC in Q1 and Q2 in 2021?
10% - Yes
44% - No
47% - Maybe
The results above are concerning to me. We need to do a better job of informing small business owners. The law changed late in the year allowing PPP borrowers to potentially qualify for the ERTC. This was major news. The ERTC can be a very lucrative credit that can put cash back in the hands of small business owners as they look to survive whatever is coming next. To see over 90% of small businesses surveyed are not familiar with the ERTC and are likely going to skip the 2021 ERTC is a clear indication we are missing the mark on getting vital information to the small business community on a timely basis.
If you are reading this, share it with other small business owners you know. Information is power, and in this case, information may lead to survival.
Below are links to past blog posts on the ERTC program from Ceterus.