Operations

Foodservice, vending groups urge feds to restore employee retention tax credit

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January 19, 2022

The National Restaurant Association and the National Automatic Merchandising Association were among 51 trade associations that sent a letter urging the Biden Administration and Congress to restore the Employee Retention Tax Credit.

The letter said the prolonged economic recovery has stalled rehiring and cast a veil of financial uncertainty over the nation's small businesses.

"Many NAMA members, just like other small business owners all over the nation, have been stretched beyond the breaking point by the lengthy on-again, off-again recovery," Mike Goscinski, NAMA senior director, external affairs, said in a press release. "Restoration of the ERTC for Q4 2021 as promised is essential for these businesses who forecasted its use to keep employees on the payroll."

In December 2021, a bipartisan group of lawmakers introduced the Employee Retention Tax Credit Reinstatement Act in the U.S. House of Representatives.

The legislation would reinstate tax relief previously established by Congress to offset a small portion of employee wages in fourth quarter of 2021 — $193 million for the convenience services industry. Access to these funds was cut during infrastructure funding negotiations.