Employee Retention Credit Case Study for Auto Dealerships

This case study examines the impact of the Employee Retention Credit (ERC) on two auto dealerships during the COVID-19 pandemic. It outlines the challenges faced by these dealerships, including mandated closures and capacity restrictions that significantly affected their operations. The study details how both Auto Dealership 1 and Auto Dealership 2 qualified for the ERC due to a combination of full and partial suspensions of operations as a result of government mandates. It also explains the methodology for claiming the ERC, including the necessary documentation and steps involved in the application process. The case study highlights the financial benefits received by the dealerships, with Auto Dealership 1 saving over $4.1 million and Auto Dealership 2 saving over $2.9 million through the ERC. This financial support was crucial for the dealerships to retain employees and recover from the operational impacts of the pandemic.