If you own a gym and survived the pandemic, we have some stuff to discuss. First off, congrats on the resilience. Secondly, there's probably money sitting in the government's checkbook, waiting for you to make your withdrawal. And best of all, it's free money and little risk to you.
There's the "ERC" out there, which stands for Employee Retention Credit. Maybe you’ve heard of it, maybe you haven’t. But if you're a gym owner, you likely qualify for some serious cash. The ERC was part of the CARES Act passed in March 2020. Business owners can claim the ERC and the PPP, meaning most fitness businesses qualify for serious money.
What's the Employee Retention Credit?
The Employee Retention Credit is a refundable IRS tax credit levied against payroll taxes in 2020 and 2021 (think stimulus to help businesses affected by COVID-19, but you don't have to pay it back).
So why do you think my gym (or any fitness business) qualifies?
Did any of these specific instances happen (you only need to qualify under one):
- Did you open your gym or fitness business after February 15th, 2020?
- Were you forced to reduce capacity, hours, or shut down in 2020 or 2021, thanks to the city, county, or state regulations?
- Did you take at least a 20% revenue loss in any quarter of 2021, and can you prove it next to the same quarter of 2019?
- Can you show a 50% revenue loss in any quarters in 2020 against the same quarter the previous year?
You're likely to qualify if you said yes to any one of the above questions. A lot of gyms had to scale back or shut down completely. So, if you had to convert to digital training or just a series of 1:1 session, that's a significant change to your business operations, which would land you in the ERC zone.
The same goes for if you're a yoga instructor who had to re-configure everything in smaller capacities due to social distancing guidelines.
A fitness company can receive up to $5K per employee for 2020 and up to $28,000 per employee in 2021.
How can I get ERC for my gym?
Well, the obvious thing you should do is call us. We know all the tips and tricks to ensure your business is in the best position to qualify for these kinds of refunds.
Once it's determined there's a case and you're eligible, we can help you claim your credit and get everything prepared on your behalf immediately.
We're here to help if you've got questions or are unsure if your business qualifies. But seriously, look into it. There's no reason not to get free money you don't have to pay back from the government. Maybe you can buy some new squat racks or start that smoothie bar!