North Dakota car dealerships, auto dealers, new and used truck dealers, and other automotive related vehicle businesses in ND that were impacted financially by the COVID pandemic will automatically qualify certain periods of time for the employee retention tax credit refund in ND.
North Dakota went into lockdown mode in March 2020 when North Dakota Governor Burgum issued mandated executive orders that forced the closure of car businesses throughout North Dakota, including most car, truck, and automobile related businesses. Many car dealership employees in North Dakota were temporarily out of work from closures in ND.
This caused North Dakota auto dealers, auto groups, dealership owners and investors from automotive related companies with multiple rooftop locations in North Dakota to suffer financially during 2020 and 2021 from these executive orders in ND.
When North Dakota slowly started to reopen, business capacity was restricted and limited in North Dakota. Plus, many ND consumers were staying at home, not driving anywhere, and not shopping for new or used cars and trucks in ND.
Overall, North Dakota has an estimated 72 new car franchised brand dealerships in ND that were affected. This ND data is according to the National Automobile Dealers Association (NADA) North Dakota Auto Report.
North Dakota Car Dealership Retail Economic Data Statewide in ND:
– 72 new car dealerships in ND.
– $2.8 billion in total North Dakota car dealership sales.
– $140 billion in ND state sales tax paid on vehicle sales.
– 12,127 workers employed at dealerships in North Dakota.
– 3,776 direct worker jobs and 8,351 indirect jobs in ND.
– Average of 52 Employees (W-2) per auto dealership.
– Average of $69,459 in annual earnings per worker.
– $262 Billion in total Employee Payroll for North Dakota new car dealerships.
– $87 Billion in state and federal income and payroll taxes paid in ND.
Other North Dakota new car data statistics in ND:
– Automobile Dealers Association of North Dakota (ADAND)
North Dakota dealerships in cities affected the most included Bismarck, Fargo, Grand Forks, and other locations in North Dakota.
See how your North Dakota automotive related business might qualify for the North Dakota Employee Retention Credit IRS Tax Refund for your car, truck, vehicle business in ND. Schedule Your Free North Dakota Car Dealership ERC Consultation today.
North Dakota Employee Retention Tax Credit for Car Dealerships, Auto Dealers and the Automotive Industry in ND
North Dakota car dealerships, automotive dealerships and automotive related businesses in ND 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.
North Dakota car dealerships and related 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 ND auto dealers or car dealerhips 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 car dealership, auto dealerships or automotive related business in North Dakota.
ND Car Dealership Employee Retention Credit, How it Works for Auto Dealers in North Dakota
With the North Dakota requirements and amount of the ERTC tax credits continually changing with the ERC program, ND car dealerships, auto dealers, and automotive dealership owners and principals may find it difficult to understand if they qualify and how much they can claim.
To maximize the benefits from this North Dakota automotive 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 dealership in ND.
North Dakota Employee Retention Credit Eligibility Requirements for Auto Dealers, Automotive Dealerships and Car Dealerships in ND
The North Dakota automotive dealership industry can take advantage of the employee retention credit in several ways.
For a North Dakota car dealership 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 North Dakota car dealership entity 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 North Dakota, Did Your New Car, Used Car, Truck Dealership or Automotive Business Experience any of These?
Full or Partial Shutdown of Your Car Dealership Location in ND
If your car dealership or automotive dealership location in ND was fully or partially shut down for even a few days due to COVID-19, it would qualify your North Dakota auto dealership for the ERC tax credit. There are multiple other ways to qualify and claim your North Dakota ERC credit for your ND car dealership to help financially recover. Even if your North Dakota automotive company received an SBA Paycheck Protection Program (PPP) loan, you may still qualify.
North Dakota Car Dealership Vehicle Sales Decreased in ND
Did your ND dealership sales drop? Not sell as many new or used vehicle units as compared to 2019? In this case, if you can show nominal harm of 10% or more in declining sales or units for your North Dakota automotive business, you qualify. This is a good example for you to claim and receive the ERC tax credit in North Dakota.
Limitations on Car Showroom or Auto Repair Service Capacity North Dakota
Due to the shutdown and partial-shutdown in North Dakota, your automotive operations greatly reduced capacity due to government mandates and orders. This means that even if your ND car dealership or automotive repair business did not meet adequate revenue losses, you can still be eligible for the ERTC tax credit from mandated North Dakota restrictions from executive orders.
North Dakota Impacted Business and Consumer Travel in ND
The inability of North Dakota residents, tourists, and business travelers to drive around in North Dakota lead to substantial losses. With many public events and gatherings in ND canceled or postponed, caused most North Dakota residents to stay at home. This created massive lost sales and revenue potential for many car dealerships in North Dakota. Therefore, you may qualify for the ERC tax credit if your automotive business has been affected by these limitations in ND.
ND New or Used Car and Truck Vehicle Cancellations and Refunds Due to COVID in North Dakota
Maybe your ND automotive business had vehicle buyers wanting to cancel their new or used car or truck order or car lease, and did not want to take delivery or renew their lease. When North Dakota shutdown, and then faced many business capacity and travel restrictions, consumers canceled travel plans and were not driving as much, according to the North Dakota Department of Transportation. This caused many ND automotive dealership operations to refund deposits and lose further revenue. This was a financial loss to the economy and auto dealers in North Dakota
No In-Person Selling or Face-to-Face Auto, Truck, Car Sales in ND
Due to the pandemic, ND auto dealers could not sell any cars or trucks during the shutdown periods. This was an obstacle for North Dakota auto dealers trying to accommodate new and used car buyers. The vehicle buying experience was taken away. If your ND automotive business dealt with this situation, or had severely limited business and operations capacity due to North Dakota mandated orders, your dealership will qualify for the ERC tax credit.
North Dakota Car Dealership Low Inventory Due to Shipping and Supply Chain Issues in ND
In North Dakota, automobile manufacturers continued to limit new vehicle production and inventories throughout 2021 and 2022 due to the semiconductor microchip shortage that began in early 2021. North Dakota franchised car dealerships were experiencing restricted new car and truck inventory at auto dealerships in ND and across the country. New vehicle inventory on the ground and in transit was consistently stuck at over one million vehicle units nationwide and in ND.
Calculating Your North Dakota Auto Dealer Employee Retention Credit for Car Dealerships in ND
Accurately calculating the North Dakota employee retention credit for your automotive dealership 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 car dealership related business tax credit in ND.
How North Dakota Car Dealerships, Auto Dealers, and Automotive Employers in ND Can Claim the Employee Retention Credit
Although the process of applying for the ERTC for your North Dakota 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 car dealership in North Dakota.
Conclusion and Summary for North Dakota Car Dealership, Auto Dealer, and Automotive Employee Retention Credit in ND
To ensure your North Dakota car dealership or automotive related 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 auto dealership employee wages. Additionally, any North Dakota government shutdown orders or restrictions on your North Dakota car dealership should be documented.
By understanding the rules of the employee retention credit, car dealerships, auto dealers, automotive businesses and companies in North Dakota can make sure they’re getting all the IRS tax credit benefits owed to them. The ERTC provides an opportunity for car dealerships affected by COVID-19 in North Dakota to recover some financial losses.
North Dakota Car Dealerships and Automotive Businesses Qualify for the Employee Retention Tax Credit (ERC / ERTC) in ND: Claim Up To a $26,000 Refund Per Dealership Employee for Your Automotive Business in ND
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Depending on eligibility, car and truck dealership owners, automotive professionals, and auto dealer principals and partners can receive up to $26,000 per automotive 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 automotive dealership in North Dakota.
Schedule Your Free North Dakota Automotive Employee Retention Credit Consultation to see what amount of employee retention credit tax refund you qualify for your car dealership in North Dakota.