Helping Child Care Businesses Connect with ERTC and FFCRA Leave
The COVID-19 Pandemic has taken a toll on our nation’s economy generally, but particularly child care. Within child care, already thin profit margins, underpaid staff, and aging facilities and programs have created a “perfect storm” of business stress that puts providers of all kinds at risk of going out of business.
As providers try to recover from the pandemic and prepare for a post-pandemic world, having resources will be critical. One source of funding that many providers are not aware of are federal tax credits.
Both the Employee Retention Tax Credit (ERTC) and Families First Coronavirus Response Act (FFCRA) leave are programs where providers have a high probability of eligibility and can supply much-needed cash.
The Employee Retention Tax Credit (ERTC)
What is the Employee Retention Tax Credit?
The Employee Retention Tax Credit (ERTC) is a refundable tax credit for businesses that kept W-2 employees employed throughout the pandemic. A refundable tax credit is one that can come back to you as cash, and in many ways, the ERTC is like the Paycheck Protection Program, but with less paperwork.
The Families First Coronavirus Response Act (FFCRA)
What is the Families First Coronavirus Response Act Leave?
The Families First Coronavirus Response Act Leave provides funds in the form of payroll tax credits to help alleviate the economic impact of needing to provide sick leave. Businesses have through 2024 to amend their past taxes to apply for this credit.