Misconceptions That Could Be Keeping Home-Based Care Providers from Further COVID-19 Relief

In the aftermath of the COVID-19 pandemic, many home-based care providers continue to grapple with severe financial implications. Unfortunately, numerous agencies remain unaware or misinformed about their eligibility status, resulting in missed opportunities to leverage a vital financial resource the employee retention tax credit (ERC), a refundable cash benefit offered by the IRS. Originating from the CARES Act in response to the pandemic's economic challenges, the ERC has the potential to significantly alleviate financial strains faced by these providers. To qualify for this credit, agencies must satisfy one of two criteria. Firstly, they can undergo an accounting examination to demonstrate a substantial decline in gross receipts during any quarter of 2020 or from Q1 to Q3 of 2021. Alternatively, they can undertake a more subjective legal assessment. Efforts to disseminate accurate information regarding the ERC's applicability are crucial, as it represents a critical financial lifeline for home-based care providers still navigating the pandemic's financial aftermath.