New York Hotels, Resorts, Hospitality ERC Tax Credit in NY

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New York hotels, resorts, hospitality, and leisure travel businesses in NY that were impacted financially by the COVID pandemic automatically qualify certain periods of time for the employee retention tax credit refund. 

When New York tourism and travel was shut down, then limited capacity when reopened, hospitality and leisure, accommodations, motels, New York lodging, casinos and other related New York hotel related companies suffered during 2020 and 2021 in NY.

The New York economy dropped substantially during the pandemic that left many hotel industry employees in NY out of work due to closures. Job openings and labor turnover in New York is still evident with 458,000 job openings in NY

In NY, some of the main hotel and travel destinations for New York cities include Albany, Binghamton, Buffalo, Elmira, Glens Falls, Ithaca, Kingston, New York, Dutchess County-Putnam County, Nassau County-Suffolk County, New York-Jersey City-White Plains, Rochester, Syracuse, Utica, Watertown.

Maybe your New York accountant or tax preparer told you that your NY hotel resort did not qualify for the employee retention tax credit in New York? Probably they are wrong and are not up to date on current IRS guidelines for the employee retention credit that will qualify your hotel in New York for the ERC tax refund.

See how your New York Hospitality and Leisure business qualifies for the IRS Employee Retention Credit Tax Refund for your hotel and lodging business in NY. Schedule Your Free New York Hotel ERC Consultation.

New York Employee Retention Tax Credit for Hotels, Resorts and Hospitality Industry in NY

New York hotels, resorts, and other hospitality, travel, accommodation, and leisure related businesses in NY are eligible to claim the Employee Retention Credit (ERC). They can receive up to 50% of their qualified wages paid between March 12th, 2020, and December 31st, 2020, in the form of a refundable tax credit from the IRS.

New York lodging businesses that were established before February 15th, 2020, can receive a refundable tax credit amounting to 70% of qualified salaries and wages paid between January 1st, 2021, and September 30th, 2021. For NY hotels or motels started or acquired after that date (referred to as a Recovery Start-up business), they are eligible for employee wage reimbursement up until December 31st, 2021.

The employee retention credit may be retroactively claimed for 2020 and 2021, through 2023, 2024, and 2025 for your hotel, resort, or motel in New York.

NY Hotels Employee Retention Credit, How it Works for Hospitality and Leisure in New York

With the New York requirements and amount of the ERTC tax credits continually changing with the ERC program, NY hospitality, resorts, and hotel owners and principals may find it difficult to understand if they qualify and how much they can claim. 

To maximize the benefits from this New York hotel employee retention tax credit, you must understand which quarters are eligible as well as which employees, wages, and payments meet the criteria for receiving the tax credit for your hotel in NY.

New York Employee Retention Credit Eligibility Requirements for Hotels, Resorts, and Motels in NY

The New York hospitality industry can take advantage of the employee retention credit in several ways.

For a New York lodging related business to be eligible for the program, it must have gone through an entire or partial closure because of COVID-19 government regulations or any other kind of government-mandated shut down during certain periods in either 2020 or 2021 as a result of this global pandemic.

Another way is for your New York hotel property to demonstrate that it has had either a 2020 quarter with gross receipts at least 50% lower than the same quarter in 2019, or in 2021, quarters with 20% fewer gross receipts compared to the corresponding quarters of 2019. Each three-month period of 2020 and 2021 should be compared to its equivalent month period in 2019.

In New York, Did Your Hotel, Resort, Motel, or Casino Experience any of These?

Full or Partial Shutdown of Your Hotel Property in NY

If your hotel or lodging location was fully or partially shut down for even a few days due to COVID-19, it would qualify your New York hotel for the ERC tax credit. There are multiple other ways to qualify and claim your New York ERC credit for your NY hotel to help financially recover. Even if your New York hotel company received an SBA Paycheck Protection Program (PPP) loan, you may still qualify.

New York Hotel Bookings Decreased Leading to High Vacancy Rates in NY

Did your hotel room bookings drop? Maybe your NY hotel is more of a tourist destination and both New York tourism and business travelers were not booking. In this case, if you can show nominal harm of 10% or more in declining room reservations to your New York lodging business, you qualify. This is a valid example for you to claim and receive the ERC tax credit in New York.

Limitations on Guests and Hotel Room Capacity New York

Due to the shutdown and partial-shutdown in New York, your hotel operations greatly reduced capacity due to government mandates and orders. This means that even if your NY hotel, resort, or motel did not meet adequate revenue losses, you can still be eligible for the ERTC tax credit from mandated New York restrictions from executive orders.

No In-Person New York Events Leads to Impacted Business and Tourism Travel in NY

The inability of tourist and business travelers to attend events in New York lead to substantial losses. Public events and gatherings in NY were canceled, and then eventually minimized. This caused most New York Events to be canceled completely for 1 to 2 years. This created massive lost sales and revenue potential for many hotel properties in New York. Therefore, you may qualify for the ERC tax credit if your lodging and accommodation business has been affected by these limitations in NY.

NY Hotel Guest Cancellations and Refunds Due to COVID in New York

Maybe your NY hotel property had various types of conferences, meetings, and other event types. When New York shutdown, and then faced many capacity and travel restrictions, consumer and business travelers canceled vacation and business plans, causing many NY hotel operations to refund deposits and lose further revenue. This was a financial devastation to the economy and hotels in New York

No In-Person Hotel Restaurant Dining in NY

Due to the pandemic, NY hotels that had on-site restaurants, catering, food service, were not able to have in person or indoor dining.  This was an obstacle for New York hotels trying to accommodate guests. Guest convenience of eating at the hotel restaurant was taken away. If your NY hospitality business dealt with this situation, and had to close your on-site restaurant, or severely limit seating capacity due to New York mandated orders, you will qualify for the ERC tax credit.

New York Cancellations of Conventions, Special Events, and Weddings Causing Your Hotel Property to Lose Revenue and Sales in NY

Many New York hotel resort or casino properties had to reduce their guest services due to COVID-19, such as not offering in-person legal consultations due to travel restrictions or self-quarantine requirements. If that is the case for you, your legal consultation may be eligible for the ERC tax credit in New York.

New York Hotel Property Amenities Forced to be Closed – Pool, Spa, Massage, Room Service, and More in NY

Many New York hotel resort or casino properties had to reduce their guest services due to COVID-19, such as closing their indoor or outdoor swimming pools, closing their spas, eliminating or reducing room service for NY guests. 

Calculating Your New York Hospitality Employee Retention Credit for Hotels in NY

Accurately calculating the New York employee retention credit for your hotel resort employees requires attention to detail, especially when it comes to determining your total payroll gross wages paid during each quarter to your workforce. Without accurately calculating this figure, you won’t be able to maximize the full tax benefits of this ERC credit. Therefore, having a comprehensive understanding of how best to calculate these figures is essential to maximize your hospitality related business tax credit in NY.

How New York Hotel, Resort, Casino, Lodging, or Motel Employers in NY Can Claim the Employee Retention Credit

Although the process of applying for the ERTC for your New York company has changed a bit, there’s still time to claim your ERC tax refund. Remember that this window won’t be open forever. It will cease in 2023, 2024, and 2025 based on the past 2020-2021 quarter evaluations. Don’t worry about running out of funds either. These IRS business tax refunds are calculated using each business’ qualifications and financials. The only way you can miss out is by not filing prior to the given deadlines for your hotel in New York.

Conclusion and Summary for New York Hotels, Resorts, Hospitality, and Lodging Employee Retention Credit in NY

To ensure your New York resort hotel, motel, or lodging business is in compliance with the Employee Retention Credit, it’s critical to have all original records, including payroll, W-2s, original 941’s filed, and other documents related to hospitality employee wages. Additionally, any New York government shutdown executive orders or restrictions on your New York hotel business should be documented.

By understanding the rules of the employee retention credit, hotels, motels, and lodging companies in New York can make sure they’re getting all the IRS tax credit benefits owed to them. The ERTC provides an opportunity for hospitality businesses affected by COVID-19 in New York to recoup some financial losses.

New York Hotels and Lodging Businesses Qualify for the Employee Retention Tax Credit (ERC / ERTC) in NY: Claim Up To a $26,000 Refund Per Hotel Employee for Your Hotel Property in NY

Disaster Loan Advisors™ can assist your New York hotel lodging business with the complex and confusing Employee Retention Credit (ERC) and Employee Retention Tax Credit (ERTC) program, without you having to sacrifice an excessive percentage % of your hard-earned ERC refund. 

DLA doesn’t charge a percent % like many companies do. Our flat fee structure is fair and reasonable based on the amount of work involved. Keep More of Your Refund™ 

Depending on eligibility, hotel owners, hospitality professionals, and resort principals and partners can receive up to $26,000 per hotel workforce employee based on the number of W2 employees you had on the payroll in 2020 and 2021.

The ERC / ERTC Program is a valuable IRS tax credit you can claim for your hotel in New York.

Schedule Your Free New York Hotel Employee Retention Credit Consultation to see what amount of employee retention credit tax refund you qualify for your hotel in New York.

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