Restaurant Revitalization Fund: How to Report Your Expenditures
If your business had the good fortune to receive a tax-free grant from the Restaurant Revitalization Fund (RRF), you are probably aware that the funds must be used for eligible expenses during the “covered period.” Generally, recipients must use the funds by March 11, 2023, for eligible expenses incurred from February 15, 2020, through March […]
Unused Gift Cards: Windfall or Burden?
Gift cards can be an attractive option for restaurants and customers alike. For customers, they provide an easy, yet thoughtful, gift idea. And for restaurants, they help increase revenue, attract new customers and build customer loyalty. Another potential benefit is that many gift cards go unused or are only partially used — a phenomenon known […]
What Is Happening With the Employee Retention Credit?
On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act (IIJA) into law. One of the Act’s provisions terminated the Employee Retention Credit (ERC) retroactively to September 30, 2021, except for eligible “recovery startup businesses.” Previously, the ERC was scheduled to continue through the end of 2021, which would have allowed eligible […]
Heads Up, Restaurants: Federal Relief Could Trigger a Single Audit
Since the outbreak of COVID-19, the restaurant industry has been one of the hardest hit by the pandemic’s impacts, leading to spikes in business closures, continued capacity limitations, and unprecedented loss in both jobs and sales. However, many establishments were able to keep their doors open and continue to serve customers throughout the course of […]
Economic Injury Disaster Loans: Another Option on the Financial Relief Menu
There are a variety of relief programs available for restaurants that have suffered during the COVID-19 pandemic, including grants from the Restaurant Revitalization Fund and forgivable Paycheck Protection Program (PPP) loans. Related Read: Paycheck Protection Program Gets a Refresh If your restaurant business was unable to obtain this relief — or if your funding has […]
Is Your Restaurant Eligible for Employee Retention Credits?
The Employee Retention Credit (ERC) is a valuable tax credit designed to encourage employers to keep employees on the payroll despite the COVID-19 pandemic’s impact on their businesses. The ERC was originally established by the CARES Act, which was enacted in March 2020. A refundable payroll credit, the ERC provides eligible employers with a tax […]
$28.6 Billion Federal Restaurant Relief
The American Rescue Plan Act (ARPA) was signed into law on March 11. It delivers direct relief to restaurants through a $28.6 billion Restaurant Revitalization Fund (RRF). The RRF provides tax-free grants via the Small Business Administration (SBA). Related Read: The American Rescue Plan Act Has Passed: What Is in It for You? Who may apply? […]
Stimulus Legislation Offers Relief for the Restaurant Industry
On December 27, 2020, the Consolidated Appropriations Act (the Relief Act) was signed into law, authorizing additional stimulus payments to individuals, extending enhanced unemployment relief and providing a variety of benefits for struggling businesses. The following is a brief overview of the provisions most relevant to restaurants. Deductibility of Expenses Paid with PPP Loans Last […]
Final Meal and Entertainment Regulations — A Much-Needed Win for the Restaurant Industry
As the restaurant industry continues to struggle amid the COVID-19 pandemic, any relief that can help restaurants boost their cash flow is welcome. Recently, the IRS issued final regulations regarding limits on the deductibility of meal and entertainment expenses. The regulations confirm that most entertainment expenses are nondeductible, but they clarify that some meal expenses […]
The RESTAURANTS Act: Will Congress Deliver Additional Financial Relief?
As the COVID-19 pandemic continues to take a toll on the U.S. economy, restaurants and bars remain among the hardest-hit businesses. A bill pending in Congress, if enacted, would provide the industry with much-needed financial relief. The tortuously named Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive (RESTAURANTS) Act of 2020 would […]