Health Fitness Centers can make an incredible contribution to society by providing people with a safe, comfortable and convenient place to exercise. However, many health fitness centers face financial issues that limit their ability to maintain their facilities. These centers can qualify for an ERTC. Using this program, health fitness centers can recover cash from their tax liabilities and become a financially stable business.
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There are several types of health fitness centers that qualify for ERTC, which is a refundable tax credit. This credit is applied against the qualified wages of employees, including tips. Besides, it can also be claimed for health insurance costs, rent, and other non-payroll expenses.
While there are several ways to apply for ERTC, you should be aware of the eligibility requirements. You may also want to consider getting expert assistance to help you determine whether or not you are eligible for the credit.
In order to qualify for ERTC, your business must have closed due to a governmental mandate, or a significant decline in gross receipts for a quarter. However, you cannot claim the credit if the revenue returns to normal for the year.
The CARES Act limited employer eligibility to those with less than $1 million in gross receipts. If your business has this qualification, you are eligible for a maximum credit of $5,000 per employee in 2020. For the second and third quarters in 2021, you are allowed to claim a credit of up to $28,000 per employee.
Before you make an advance payment on false claims for large tax refunds, you should consult with a qualified tax professional. It is important to ensure that the company you are working with is legitimate, as it is common for scammers to use high-pressure tactics to trick you into making an advance payment.
Remember, there is no fee for getting expert help in determining if you are eligible for the credit. If you are interested in receiving a credit, you should file Form 7200 with the IRS to get the credit.
Having a good credit can be a big advantage for your business. Moreover, if you need to get the credit fast, it’s wise to work with a company that can provide financing to your business. This can give you the best service possible, and it can allow you to receive the credit faster.
ERTC is an important tax tool for businesses. If your fitness center has suffered a drop in revenue, you may be eligible for a refundable tax credit that can help you regain your footing.
Audit-proof documentation for IRS support
A few tips and tricks for filing your taxes will get you well on your way to tax time bliss. For example, one of the best ways to keep track of your receipts and other financial data is to keep a spreadsheet handy at all times. This will allow you to quickly and easily check out the numbers on a daily basis. It may even save you money in the long run. Also, remember to file your paperwork in a timely fashion, or you could be hit with a nasty IRS audit. Another useful tip is to keep your credit card receipts separate from your bank or PayPal account details.
IHRSA’s Legislative Alerts
As the fitness industry continues to face continued challenges, legislators have been working to provide targeted aid for struggling gyms. Through the Small Business Administration, owners of privately owned fitness facilities are granted grants that can help pay for expenses including utilities, insurance, payroll and mortgage payments. However, grant amounts are limited to $10 million and the funds must be used for ordinary and necessary business expenses.
The Senate will make a decision on business relief legislation as early as this week. The GYMS Act would create a $30 billion fund to support health and fitness centers. This would replace lost revenue in 2020 and could recoup as much as 45 percent of revenues for 2019.
The Community Gyms Coalition was created last fall to add the lobbying power of the gyms and fitness facilities industry. In conjunction with IHRSA, the coalition worked to encourage the Senate to pass direct aid for gyms. They also helped the Michigan Fitness Club Association pass a bill that would create a $53 million fitness facility relief fund.
The International Health, Racquet & Sportsclub Association (IHRSA) is the trade association for the fitness industry and offers members updates on issues related to the industry. Jake Landry is IHRSA’s Public Policy Assistant and writes legislative alerts. His goal is to inform IHRSA members about national and state issues that are of interest to the health and fitness industry.
Another issue to watch for is House Bill 227, which would require businesses to give consumers notice of contract renewals by email or other electronic means. In addition, it would also have required that companies automatically renew contracts for a period of time. It was proposed that customers be notified 30 to 90 days before the agreement is due to expire. There were complaints from consumers who couldn’t cancel their memberships.
Congress has recently passed the American Rescue Plan Act, which included similar measures. IHRSA has been lobbying for a targeted aid program for the fitness industry since last year. Although the Senate has not yet voted on the bill, IHRSA expects a decision by early February.