As of July 31, 2022, Kallas Restaurant Accounting has obtained over $48 million in payroll tax refunds for our clients under the ERC (Employee Retention Credit) tax law rules.

So far, the refunds are averaging approximately $ 84,000 per restaurant per year.  The credit is available for 2020 and 2021.

This is a much-needed shot in the arm for many restaurants that are still struggling with the aftermath of the Covid shutdowns.

Kallas was the first accounting firm to jump on this great benefit for our clients.   While other general practice accounting firms were struggling with the rules, we determined immediately that all restaurants were eligible due to the governor’s shut down rules.

And we saw immediately the great benefit this would be to our clients so we acted quickly to keep the transaction costs within reason.  We had numerous meetings with our experienced staff as well as our Enrolled Agent – Tony Gawel, our payroll tax expert – Jordan Anderson and our CPA’s to interpret and institute procedures to obtain the credits.

Many accounting firms hesitated.  Either because of the work involved, they did not have the expert staffing, or because they were afraid to make reasonable interpretations of the new law. 

If you happened to employ one of the national payroll companies for your payroll, they would perform a portion of the work necessary but would require you or your accountant to provide to them much of the information and then your accountant would have to make the proper accounting entries and your tax person would have to coordinate with the payroll company and the accountant to prepare the necessary corporate and individual tax returns.

It is a complicated credit because it involves qualifications, interpretation of law, payroll, payroll taxes, amended payroll tax returns, adjustments to accounting books, business tax returns and even individual tax returns.   (Luckily it did not involve any banks so that didn’t slow us down).

Kallas’s combination of payroll knowledge, accounting knowledge and tax knowledge uniquely positions us to obtain these credits quickly in the most cost effective and safe way.

Now that the dust has settled, other firms are getting into the act but at a much greater cost to the client.

The credits are still available so if you know a restaurant owner who has not obtained the credit, you would be doing them a great favor by referring them to Kallas.