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If you are running a childcare center or starting a daycare, you are probably always on the look out for daycare grants and stimulus programs that could help you make a bigger impact on the families and children in your care.

In this article, I want to talk about the stimulus program, the Employee Retention Credit, because I don't want you to miss out on free money! 

Before we get started , If you're new here, My name is Dena, and I have been a center director for 21 years and love what I do, but it is WORK! My goal is to help other providers with their child care programs and help relieve the stress that the daycare world brings.

Don't forget to snag my FREE Interview Guide to hire the right staff for your daycare or child care center! Reduce turnover with my 12-page Interview Guide with Questions and Job Position Descriptions designed for child care hiring!

Let’s talk about a government-sponsored stimulus program many people don’t know about or think they don’t qualify for.

The Employee Retention Credit (ERC)

ALL preschools and centers should apply for the ERC! The Employee Retention Credit is a government-sponsored stimulus program designed to help businesses that were able to retain their employees during the Covid-19 pandemic. 

Most childcare centers and preschools can get on average $150k - $250k depending on how many staff they have, but most don't even know that the ERC exists or that they qualify. If you’re looking for grants for daycare providers, this is it!

We've recently decided to go through the process for our childcare center and found out we are eligible for a $250,000.00 refund!

We are currently in the process of getting our refund, and I want to help as many other childcare programs as possible while it's still available.

And YES, you can still qualify for ERC even if you received PPP money. We did!

Originally, in 2020 a business that chose to retain their employees during the Covid-19 pandemic had to choose between two forms of stimulus, ERC or PPP. 

Most businesses took PPP loans as they were more substantial. But, in 2021, everything changed. President Biden and the new administration made changes to the legislation.

Businesses are now eligible for both PPP and ERC, and it's free money.

Now, let me answer some common questions I have been getting about Employee Retention Credit.

1. So what is the Employee Retention Credit? 

   The CARES Act established this stimulus program. It is a refundable tax credit – a grant, not a loan – that your business can claim. The program is based on qualified wages and healthcare paid to employees. 

2. How do we apply for our refund?

   We used Bottom Line, an independent advisor that will walk you step-by-step through the process, give you a refund estimate, and process the refund with the IRS at no cost to you. They are a one-stop-shop from start to finish, only receiving their filing fee after you receive your refund.

   Bottom Line has done this process for over 14,000 customers and recovered over 4 billion in refunds. They have been in business since 2009 and work with many of the Fortune 500. 

   click here to book a 5 minute call with an advisor from Bottom Line. They will ask you a few simple questions to see if you qualify.

3. My accountant said we don't qualify for the ERC because we received PPP money. Is this true?

   No, this isn't true. Originally a business that chose to retain their employees during the Covid-19 pandemic had to choose between two forms of stimulus, ERC or PPP.

   Most businesses took PPP money because it was more substantial, but In 2021 everything changed. President Biden and the new administration made it easier for businesses to apply and to be eligible for both PPP and ERC. So, yes, you can get both the PPP and ERC.

   Most accountants do not specialize in the ERC. They may be aware of it, but they do not know the detailed stipulations. Bottom Line specializes in the ERC program and processes hundreds of refunds every month.

   Your refund may be lower because you received PPP, but our center received a substantial amount of PPP funds (2 rounds), and we still qualified for a $250k refund.

4. Do non-profit organizations qualify? 

   Yes, if your center is a non-profit or affiliated with a church, you still qualify! Churches qualify too. Any business, profit or non-profit, with five or more W-2 employees can apply.

5. I have a home daycare, and it's only me. Can I apply? 

   Unfortunately, no :( You must have five or more full-time W-2 employees to qualify, but trust me, I am on the lookout for my home providers, and I will let you know if I come across something for you!! You deserve some love too! 

6. How much work is involved on my end?

   Well, if you're getting $250k, does it really matter? I’M KIDDING! But for real, it only took us an afternoon to copy and send our payroll records for 2020 and 2021, along with PPP info and 941 forms. 

   And if you need help figuring out what documents to send, Bottom Line helps you with everything. I worked with Michael, and he is the kindest person you will ever meet. 

   Here’s what the process looks like….

   Step 1:  You schedule a meeting with an ERC advisor and review how you qualify

   Step 2:  Sign an engagement letter and complete a questionnaire

   Step 3:  Gather required documents (old 941s, payroll journals, & PPP Forgiveness)

   Step 4:  See how much you qualify for

   Step 5:  Bottom Line Completes IRS Filing

   Step 6:  Receive your checks in 3-5 months

   And I know how busy you are, but just setting aside a few minutes to jump on a call with an advisor will be well worth it if you qualify for THOUSANDS of DOLLARS in your pocket!

7.  I've heard of companies scamming people. Is Bottom Line legit? 

   I've heard of that too, so I was skeptical myself, but Bottom Line has done this process for over 14,000 customers and recovered over 4 billion in refunds. They have been in business since 2009 and work with many of the Fortune 500. 

   They are the #1 savings company in the US processing ERC refunds. They are well known and trusted by the IRS and their ERC refunds have yet to be flagged or audited. That says a lot!

   Our experience has been nothing but great! And trust me. I googled them before we got started, and they have wonderful reviews!

8. Do I need to use Bottom Line to receive my refund, or can my accountant do it?

   There are many companies out there that can process and submit your refund for you, but I can't vouch for them since I haven't used them. There are warnings from the IRS to use reputable companies so beware.

   As far as letting your accountant to it, it is a very complicated process. Most accountants do not specialize in the ERC. Some may be aware of it, but they do not know the detailed stipulations.

   Bottom Line specializes in the ERC program and processes hundreds if not thousands of refunds every month. They are the # 1 processing company in the US and have processed over 14,000 refunds claiming 4 billion dollars.

   Personally, I wouldn't want to be responsible for my accountant, who is not efficient in the ERC program, calculating the incorrect figures and submitting the wrong info to the IRS.

9. Will it cost anything? 

   Yes and No. There is no upfront charge to you whatsoever! Bottom Line will walk you step-by-step through the process, give you a refund estimate and process the refund with the IRS at no cost to you.  

   After you receive your checks from the IRS, you will give them a small percentage of the refunded amount for their filing fee, but they don't get paid until you have your money in the bank. 

   All companies charge a fee considering the work involved. And think about it this way…You still walk away with free money you didn’t know existed 2 weeks ago!

10. How do I know if I qualify? 

    To qualify, your business must meet either one of the following criteria:

    • Experienced a decline in gross receipts by 20% OR

    • Had to change business operations due to government orders

    Essentially all businesses qualify for ERC unlike PPP loans since you don’t have to show a decline in revenue during the pandemic, BUT if you did have a decline, the grant is automatic. 

    Even if your business did not have  a revenue reduction or was deemed essential...You can still qualify for ERC.

    Some Examples Include: 

    *Change in business hours 

    *Partial or full suspension of your operations 

    *Reduction in care or services offered 

    *Reduction in workforce of employee workloads 

    *A disruption in your business (room closures for example) 

    *Suppliers were unable to make deliveries of food, critical goods, or materials 

    *Additional spacing requirements for employees and children due to social distancing 

    *Change in job roles/functions 

    *Tasks or work that couldn’t be done from home or while transitioning to remote work conditions 

    *Lack of group or staff meetings 

    Answer this question... Due to the government order of partial or full suspension, was your business NOT able to continue its activities in a comparable manner, and did that impact your business operations?

    If you answered yes (or even if you're still not sure), click here to book a 5 minute call with an advisor from Bottom Line. They will ask you a few simple questions to see if you qualify(85% of businesses do) And if you're a little intimidated, don't worry. They are very helpful and make the process really simple.

    All businesses with five or more W-2 employees are eligible, so pass this along to anyone you think would be interested.

    I'm just trying to help my fellow childcare providers. I know we all need extra money in this business :)

Conclusion:  

If you’re looking for grants for daycare providers, look no further!

ALL preschools and centers should apply for the ERC! You could get $150k or more just by jumping on a quick 5 minute call to see if you qualify.

It’s absolutely free money that many childcare providers simply don’t know about.

Even if your accountant has previously said you don’t qualify, just take 5 minutes and talk with Bottom Line. I love accountants, but they are often giving the wrong info based off of old legislation.

Worse case…you don’t qualify and you go about your day. Best case….you get thousand of dollars to improve your business, your life, and relieve unnecessary stress!

Thanks for reading!

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