To say the restaurant industry took a wallop during the sweeping COVID-19 shutdowns is putting it lightly. That may be doubly so for sports bars who had no games to show, no guests to entertain, and were less likely to have a pre-existing delivery program already in place.

We felt the strain and no doubt you felt it, too.

So, if you’re still open and operating, congrats! You weathered one helluva storm.

And you deserve a little help and reward for navigating those rough seas. And, amazingly, the Federal government agrees, which is why they implemented the Employee Retention Tax Credit (ERTC) program.

What is the ERTC?

The ERTC is a refundable credit that businesses can claim on qualified wages, including certain health insurance costs, paid to employees. It was designed to incentivize companies to keep staff on payroll during the sweeping shutdowns of 2020 and 2021 — including bars & restaurants.

In short: It’s a much-needed relief program for restaurant and sports bar operators like you.

You can get up to $26,000 per employee that you kept on payroll in 2020 and 2021. The bar & restaurant industry is averaging more than $140,000 in ERTC payouts. That’s a ton of money that I know most of us could use.

For some added context: our small, three-person company got over $30,000 back thanks to the ERTC. That’s not an insignificant amount, and no doubt you have a lot more employees than us.

And we, through our parent company The Rail Media, are offering free ERTC consultations to any restaurant or sports bar looking to partake in the program.

Let’s take a quick look at what the program is and isn’t, and how you can get some money back.

3 ERTC Myths that Sports Bars & Restaurants Get Wrong

empty sports bar on a slow night

There’s a lot of misinformation out there about who exactly can take advantage of the ERTC. This is partly because the program rules have been rewritten a few times, so what would’ve disqualified your sports bar previously may no longer be a barrier today.

Let’s quickly look at the three most prevailing ERTC myths:

  • “My accountant told me I don’t qualify.” This is a super common issue, especially because the ERTC has been rewritten. In fact, the ERTC rules are nuanced and often falls outside the scope of what a CPA does. It’s worth another look by tax experts. We’ve teamed up with El Dorado Tax Solutions in our ERTC assessments to help with this very issue.
  • “I received a PP loan, so I don’t qualify.” Good news! Getting a PP or SBA loan doesn’t disqualify you from the ERTC. For example, we received both a PP and SBA loan and was still able to get a sizable check back from the feds through the ERTC.
  • “We operate at a net loss, so we don’t need the write-off.” A bold stance. By not applying, your bar is forfeiting up to $26,000 per employee. The ERTC is, quite literally, free money. There’s no reason not to apply.

There are 3 Ways Sports Bars & Restaurants Can Qualify for the ERTC

A bartender talks to a patron while looking over a tablet

Reduction in gross receipts. Your bar/restaurant experienced a significant decline in gross receipts when comparing the calendar quarter OR the prior quarter to the corresponding quarter in 2019.

Full or partial suspension of operations (mandates). Your bar/restaurant had to shut down or restrict
on-premise dining due to governmental order.

Recovery startup. You opened your bar/restaurant after February 15, 2020, have one or more W2 employees, and had annual average gross receipts under $1 million.

Some ERTC Facts that Sports Bars & Restaurants Should Know

Some things to keep in mind if you’re still on the fence about applying for the ERTC:

  • Credits are up to $5,000/employee for 2020 & $7,000/ employee per quarter for 2021
  • Total potential of $26k per employee
  • You can get ERTC money back even if you received PP and/or SBA loans
  • Our average ERTC for clients in the restaurant industry is $146,565.34.

Get a Free ERTC Consultation for Your Sports Bar

A woman holding a beer with her arms held over head in celebration while watching sports

If you’re ready to get some money back from the feds, we are offering free ERTC consultations through our parent company, The Rail Media. We’ll guide you through the entire process for free, figure out if you’re eligible for a payout, and how much you can get back.

This is done in partnership with El Dorado Tax Solutions. They have more than 45 years of industry experience, are Enrolled Agents licensed by the US Department of Treasury, and back up every ERTC filing, so you’re well prepared if the IRS comes knocking later.

Alternatively, you can click the button below to get started.