There’s no doubt that the on-going coronavirus pandemic has been particularly devastating on the salon industry in the last year-and-a-half. Between the rollercoaster ride of constantly changing regulations and impending shutdowns, many salon and barbershop owners were just lucky to keep their businesses afloat.
While the government has offered salon pros the opportunity to receive financial assistance in the form of PPP loans, many in the industry may not be aware that another form of relief exists for supporting your business during these trying times: the Employment Retention Tax Credit (ERC).
Established as part of the Coronavirus Aid, Relief, and Economic Security Act (or CARES Act), the Employment Retention Tax Credit is designed to assist employers that have been negatively impacted by COVID-19 to keep their employees on their company’s payroll and lessen the financial burden placed on employers as a result of the pandemic. Depending on a number of factors (including the use of other federal relief grants and forgiven PPP loans), employers may qualify for tax credits of up to $33,000 per employee by the end of the year.
To help make sure that salon pros take advantage of this incredible financial opportunity, the Professional Beauty Federation of California has launched a turn-key, full service platform to assist salon, barber, and spa employers in filing for the Employment Retention Tax Credit retroactively to 2020 and for each of the ongoing quarters of 2021.
Through their partnership with Adesso Capital, the PBFC has been able to establish a online portal (which can be accessed at www.federationplans.com/erc) as well as a team of tax CPAs who are experienced in filing ERCs and available to help employer-based salons, barbershops, and spas to qualify for and access this federal relief program. For any employers interested in connecting with these experts, they can call the new Federation ERC Support Line at 888-600-7380.
Speaking on this new program, PBFC Legal Counsel and Advocate Fred Jones stated, “We were surprised to learn that most barbering and beauty establishment owners, including even chain franchisees, haven’t even been informed of this unprecedented ‘pot of gold’. Our team of tax experts will ensure that our members get the relief they deserve after a very difficult year. Once again, the Professional Beauty Federation is stepping up to be proactive as the beauty professional’s go-to advocate to protect and promote our beloved industry.”
In addition to helping salon and barbershop employers apply for their tax credits, the PBFC will also continue their efforts to inform and guide salon pros who received PPP payments in getting their loans fully forgiven. To ensure that stylists, salon owners, and barbershop owners understand how the forgiveness portion of the program works, they will be sharing answers to frequently asked questions regarding PPP forgiveness.
Damon Maletta, founder and CEO of Adesso Capital added, “We will not abandon any of those shop owners, independent hairstylists, estheticians, nail techs, and other personal care professionals who received PPP. Adesso and the Professional Beauty Federation will do everything we can to lead them to final forgiveness to ensure PPP doesn’t become a debt burden.”
The Beauty Federation has established a website full of helpful PPP Forgiveness information at www.federationplans.com/ppp. Additionally, they have also set up a direct email and toll-free number to assist salon pros at email@example.com or 888-600-7380.
According to the PBFC, so far, over 12,000 industry professionals and shop owners have used the online portal and over $10 million in PPP dollars have gone out to the industry, as a result of their efforts.
For more announcements from the PBFC, be sure to follow @probeautyfederation on Instagram.