Supply Chain Disruption - An ERC Qualification
December 31, 2022
Businesses Can Qualify for the Employee Retention Credit (ERC) for a Supply Chain Disruption
The last two years have seen a seemingly never-ending stream of supply chain disruptions. As explained by The White House, the pandemic and COVID-19 restrictions have disrupted supply chains. As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Employee Retention Tax Credit (ERC) provides relief to businesses subject to a supply chain disruption.
At Sunrise Business Solutions | ERC Guaranteed, we specialize in helping clients qualify for the Employee Retention Credit (ERC). Our team of ERC specialists have the skills and expertise to help businesses qualify for the maximum tax credit for all six quarters. Here, you will find an overview of the key things to know about supply chain disruptions and qualifying for the ERC.
A Supply Chain Disruption is a Qualifying Event for the ERC
The Employee Retention Credit (ERC) is a tax credit for businesses. It is available for six quarters across 2020 and 2021. A company could qualify for up to $26,000 in tax credit per employee. There are a number of different ways to qualify for the ERC. If your company was subject to any type of partial restriction of commerce, you can qualify for the tax credit. A non-exhaustive list of examples of partial suspensions/restrictions that can qualify businesses for the ERC include:
- Cleaning and sanitizing requirements;
- Capacity restrictions;
- Social distancing requirements; and
- Shut down orders.
These types of restrictions had serious adverse effects on the supply chain. There are major supply chain disruptions impacting virtually every industry. As long as a restriction is related in any way to a government order, then a business can qualify for the ERC based on the supply chain disruption. At Sunrise Business Solutions | ERC Guaranteed, our team of ERC specialists helps our clients put together the documentation needed to prove that a supply disruption is related to a government order.
Supply Chain Disruptions Affected Many Industries: How You Can Qualify for the ERC
Businesses and organizations from all types of industries were impacted by supply chain disruptions in 2020 and 2021. You can file for the ERC—with available tax credits for all six quarters totaling up to $26,000 per employee—on the basis of a supply chain disruption related to a government order other restrictions. Here are some specific examples of how different industries were affected:
- Manufacturing Industry: Manufacturers of all types were impacted by supply chain disruptions. In some cases, vendors were slow to provide materials or raw goods or parts and computer chips to their supply chain manufacturers.
- Construction Industry: There were project delays for many construction sites in 2020 and 2021. The supply chain issues made it more difficult for companies in the construction industry to get the goods and materials that they needed to move forward with projects.
- Retail Businesses: Retail businesses—particularly brick and mortar locations—saw consistent disruption due to supply chain issues. Many had issues getting their full supply from vendors and did not have the selection of goods as normal to sell to customers.
- Nursing Care Facilities and Nursing Homes: Assisted care facilities, nursing homes, and other health providers were affected by supply chain disruptions along with many other government orders. The strict COVID-19 protocols prevented many providers from entering facilities on a regular basis to serve patients.
- Hospitals and Medical Providers: Supply chain disruptions hit all aspects of the healthcare industry. There were significant restrictions on elective surgeries and other forms of elective medical care thus affecting all therapists and home health care agencies..
- All Therapists: All types of therapists were also impacted by supply chain issues—from physical therapists, occupational therapists, speech therapists to mental and psychiatric therapists and child psychologists.
Too many businesses that are qualified for funds through the Employee Retention Credit (ERC) have not yet applied. Sunrise Business Solutions | ERC Guaranteed helps clients file for the ERC for supply chain disruptions for all six quarters. It is not too late to take action. You can still file for the Employee Retention Credit for both 2020 and 2021 in 2022.
Speak to an Employee Retention Credit Specialist Today
At Sunrise Business Solutions | ERC Guaranteed, we can help you qualify for the ERC in just 60 seconds. If your business endured any type of supply chain disruption that was related in any way to a government order affecting commerce, you can qualify for the Employee Retention Credit. We help more businesses qualify for more funds than the competition. Call us at 1-888-210-8870 to learn more.