Case Study
The COVID-19 pandemic had an unprecedented impact on businesses worldwide, creating significant financial struggles and operational challenges. Among the hardest hit were staffing agencies, grappling with a substantial reduction in job opportunities and demand from clients due to the economic downturn. Even today, the impact of the pandemic is still being felt as the reduction in revenue streams has left many businesses in dire need of continued support.
The Employee Retention Credit (ERC) continues to remain a crucial lifeline for businesses that navigated through the uncertainties of the pandemic. This credit offers much-needed relief to companies that persevered by keeping their employees on payroll during shutdowns or in the face of major declines in gross receipts.
Yet even those who hadn’t considered applying for this credit, potentially leaving substantial funds unclaimed, can still take advantage of its benefits. Avionté, a premier provider of staffing and recruiting software along with mobile staffing solutions, has joined forces with Equifax, a renowned name in employer services, to assist clients in the process of unlocking valuable tax benefits that could yield considerable financial gains. This partnership aims to support businesses in ensuring that valuable financial resources remain accessible to those who rightfully deserve them.
A remarkable example of the impact of this collaboration is Madison Approach Staffing based in Westchester, New York. Leveraging their relationship with Avionté, the agency was able to connect with Equifax who promptly helped the company uncover a substantial sum of tax credits, totaling over $400,000 – game changing money that will help ease financial burden and pave the way for a brighter future.
Results at a Glance:
Since its establishment in 1988 as Reinhard Temps Ltd., Madison Approach Staffing has grown into a premier staffing agency, committed to matching exceptional individuals with opportunities across a diverse range of employment types: full-time, part-time, temporary, and direct hire. Collaborating with a network of over 1,800 esteemed companies, Madison Approach Staffing operates across Westchester, Rockland, Putnam, and Fairfield Counties, as well as throughout northern New Jersey and New York City. A true family business, in 2006, founder Marion Reinhard passed the torch to her daughter, Allison Madison.
“You could say staffing is in my blood. I live and breathe helping businesses find the talent they need to grow their businesses into prosperous establishments and helping people find jobs where they can thrive in environments where they feel they belong. It is what I love because I am helping to build strong communities, one job at a time. We place the people that make organizations run!”
Allison MadisonCEO, Madison Approach Staffing
Under Marion and Alison’s dedicated leadership, Madison Approach Staffing thrived for decades. But the pandemic brought a profound setback, forcing the company to significantly downsize its operations and cut over fifty percent of its internal staff.
Allison’s past loan rejections made her skeptical of being able to receive tax credits, leading her to ignore numerous salesy emails promoting relief options. However, thanks to her longstanding partnership with Avionté, a company she has been a loyal customer of since 2019, a glimmer of hope emerged.
Upon receiving communications about Avionté’s partnership with Equifax Workforce Solutions, a leading expert in helping navigate the ERC processes, Allison decided to take a chance and contacted her Avionté representative who quickly connected her with Equifax.
“Although I typically disregard emails offering pandemic relief funds, my trust in Avionté and their endorsement of Equifax made me feel there was no harm in having a conversation. The process was very simple and straightforward – just a short conversation to give them your information and see if it’s worth going to the next step. I had no idea that there was that much money on the table!” said Allison Madison.
Allison’s initial skepticism about receiving these types of credits is quite common among many staffing agencies as there are lots of misconceptions about the process. For example, many agencies believe they don’t qualify due to workforce size, but substantial opportunities for relief exist, driven by government mandates and gross receipts declines. Despite doubts, qualifying is possible. Agencies with fewer than 100 full-time employees can still benefit from wage credits, and the threshold expanded in 2021 to include agencies with under 500 employees compared to their 2019 numbers. Businesses can receive up to 50% of payroll in 2020 and 70% in 2021 for qualified wages.
Another misconception emerged when many agencies believed that accepting other relief options during the COVID pandemic exempted them from claiming tax credits. However, that is not necessarily the case. For example, clarifications have been made regarding the option to choose either a PPP loan or these credits, or even both, depending on their specific situation. This confusion means that many agencies may be leaving money on the table by not even trying to see if they qualify.
But thanks to Avionté’s work with Equifax, the entire process to find out if you qualify can be relatively fast and simple. Referrals to Equifax typically result in quick contact, with five qualifying questions, followed by an engagement letter upon eligibility. The process efficiently helps you verify government orders, gross receipts, and more seamlessly access payroll data from AviontéBOLD, enabling Equifax to help you calculate and file credits with the IRS usually within 35 days, providing this financial support to agencies with no upfront costs.
“Having the partnership with Avionté makes a huge difference in streamlining our workflow, especially when it comes to retrieving crucial payroll data for the calculations. It’s a big part of the information we need, and having that seamless collaboration makes everything smoother. Thanks to Avionté’s support, we can efficiently deliver the results our clients need and ensure a hassle-free experience throughout the process.”
Grace KownslarDirector of Partnerships, HIREtech Division, Equifax
And for those who qualify, like Madison Approach Staffing, this streamlined process can sometimes result in significant financial benefits, possibly unlocking substantial credits and providing a much-needed boost to their business. To Allison’s surprise, she found out she qualified, just based on her gross receipts, for over $400,000 in tax relief!
“Receiving this game-changing money will empower me to grow my business and expand our team. It’s the funding I’ve been needing to get ahead and make a real impact. Having this influx of cash to fuel our growth is nothing short of game-changing! Investing just 15 minutes of your time talking to Equifax is worth it, considering the potential return it brings!” said Allison.
The pandemic had a severe impact on staffing agencies like Madison Approach Staffing, leading to downsizing and financial struggles. However, through their partnership with Avionté, the agency was connected with Equifax who quickly helped uncover substantial tax credits. In a remarkably short period of time and with minimal exertion, the agency accessed a game-changing lifeline to help bolster their future and ensure business growth.
Madison Approach Staffing’s triumphant journey stands as a testament to the impact of strategic partnerships and the significance of exploring all available resources. With expert guidance, businesses can sometimes unearth profoundly impactful financial opportunities in just a short amount of time. Through a more seamless collaboration with dedicated relationships like Avionté and Equifax, businesses may unlock a treasure trove of tax relief, helping pave the way for greater growth and long-term prosperity.
“It only takes 10 minutes to talk to an expert and find out if you qualify, but those 10 minutes can be worth a whole lot of money!”
Grace KownslarDirector of Partnerships, HIREtech Division, Equifax
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