Click here to get this post in PDF
You can have the best-laid plans for your small business, only to have something completely out of your control occur that impacts your financial security. Consider the enormous impacts small businesses incurred due to the pandemic; no one was left unscathed.
The good news is that there are several relief options offered to small business owners from debt forgiveness programs to tax relief programs. Many of these aim to lessen the burden of debt and ensure that more money stays in your pockets to put back into your business.
Small Business Debt Relief Program
The Small Business Debt Relief Program came out of the CARES Act after the Small Business Administration (SBA) received money to assist small businesses that were struggling due to the pandemic. The Debt Relief Program consists of additional money to help small business operators who received certain loans.
The loans must have been taken out before September 27, 2020, and eligible loans include microloans, 504 loans, or 7(a) loans that were taken out from the Small Business Administration. The SBA has also asked financial institutions to work with small businesses as much as possible to make paying off their loans much easier.
Small Employer Health Insurance Premiums Credit
Having the option to give employees health insurance may seem out of reach for small businesses, even though it shouldn’t be. The Credit for Small Employer Health Insurance Premiums is a fantastic incentive to enact this crucial benefit for your employees, who will be immensely grateful to you for it.
When you set up insurance for your employees, this tax credit allows you to claim back between 35% to 50% of the premiums you pay for their insurance plans. To claim the credit, you have some stipulations for where you can get insurance.
Work Opportunity Credit
The Work Opportunity Credit offers support for hiring barriers individuals, including veterans, youth in empowerment zones, and people who receive family assistance, among others. You can earn a tax credit based on wages for these employees, but you’ll want the help of an accountant, as the form can be complicated.
Employee Retention Credit
Many small businesses had to make sacrifices in lieu of the pandemic, and being able to retain employees was a challenge for many. For small business owners who found ways to keep employees employed during this troubling time, the Employee Retention Credit allows you to claim credit for what you spent on wages for employees you kept on.
The associated form will ask for the total wages spent on each employee and any money spent on insurance plans.
Disabled Access Credit
Spending money to make your business a more accessible place for people with disabilities is a worthy cost, but it may not be money you feel you can afford to dedicate to accessibility. Changes you can consider may be anything from adding a ramp to the front of your store to providing alternative options for the materials you provide.
The Disabled Access Credit incentivizes these improvements, allowing more people to comfortably and safely access your business. Eligible expenses must be between $250 to $10,250, and your business must meet certain criteria.
Final Thoughts
Should you have a hard time understanding your options for small business tax credits, it’s worth chatting with an accountant. Tax season can be anxiety-inducing enough without worrying about fixing a potential error after the fact.
The same is true of debt forgiveness; it’s always worth a try, but doing it right with the help of an expert can ease some of the pressure you are already dealing with keeping your small business afloat.
You may also like: Major R&D Tax Credit Changes Coming in 2022
Image source: Depositphotos.com
