The coronavirus pandemic has been an unprecedented event for many businesses around the world. Thousands of businesses were forced to close their doors for months at a time in order to help prevent the spread of the virus. As a result, essential businesses such as grocery stores, pharmacies, and healthcare providers were allowed to remain open to serve the needs of the public. However, this has come at a great cost for many essential business employers.
The COVID-19 lockdowns have caused a significant disruption to the supply chain as well as increased operational costs for essential businesses. Many employers have had to adjust their staffing needs in order to meet the demands of the pandemic while still providing essential services. This has resulted in an increase in overtime costs, as well as the need to hire additional staff to meet the demands of the new business environment.
It has also caused an increase in employee absences due to the risk of exposure to the virus. This has put an additional strain on essential businesses, as employers have had to find ways to maintain business operations while also managing employee absences. Additionally, the lack of in-person customer service has also placed a strain on essential business employers, who must now rely on online or phone services.
Yes, for employers who are a part of an essential business and who have experienced a significant decline in gross receipts due to the COVID-19 pandemic, you are still eligible to claim the Employee Retention Credit (ERC). The ERC is a refundable credit that allows employers to receive up to $5,000 per employee for wages paid in 2020.
In conclusion, the COVID-19 lockdowns have had a significant impact on essential business employers. Many employers have had to adjust their staffing needs, incur increased operational costs, and deal with employee absences due to the pandemic. Fortunately, the Employee Retention Credit (ERC) can help ease some of the financial burden for essential business employers.