Essential Relief Programs for San Francisco Restaurants

Exploring Federal and California State Tax Credits to Boost Your Small Business

California and Federal governments offer several tax incentives and relief programs to support restaurants and other small businesses. Here are some key programs that may be available to the food businesses in San Francisco:

FICA Tip Credit

Eligibility: Restaurant owners can claim a credit for the employer’s portion of Social Security and Medicare taxes paid on employee tips. This credit is 7.65% of the tips that exceed the federal minimum wage of $5.15 per hour.

Calculation: Multiply the tips in excess of the federal minimum wage by 7.65%.

Employee Retention Credit (ERC)

Purpose: This credit was designed to reward businesses for keeping employees on the payroll during the COVID-19 pandemic.

Amount: Businesses could claim up to $26,000 per employee for the years 2020 and 2021 by amending their employment tax returns.

Main Street Small Business Tax Credit

Purpose: Provides financial relief to small businesses impacted by COVID-19.

Usage: The credit can be applied against income taxes or sales and use taxes, with a maximum of $100,000 in credits per eligible business.

Work Opportunity Tax Credit (WOTC)

Purpose: This federal tax credit incentivizes the hiring of individuals who face significant barriers to employment, such as veterans and ex-felons.

Administration: In California, the Employment Development Department (EDD) certifies eligibility for this program.

California Competes Tax Credit

Purpose: Provides tax credits to businesses looking to grow, relocate to, or stay in California.

Eligibility: Businesses must apply and meet specific criteria to receive this credit.

Employee Training Panel (ETP)

Purpose: Provides funding for training that upgrades the skills of workers, prioritizing small businesses.

Eligibility: Small businesses can receive reimbursements for training costs.

Commercial Reuse Program (San Francisco)

Purpose: Provides up to $500 for each restaurant that signs up to transition away from single-use disposable food ware items to reusables.

Goal: Reduce waste and lower refuse costs for small businesses.

These programs are designed to help restaurants manage their tax liabilities, retain employees, and invest in growth and development. For detailed information and assistance, restaurant owners should consult with tax professionals or relevant state agencies.