A Case Study: How Maximus Ensured Employee Retention Credits after a Hurricane

Maximizing Tax Credits to Rebuild and Support Employees

The damage from a severe hurricane meant one large food service franchise incurred major losses at several of its stores, experiencing a period of inoperability. Businesses deemed “inoperable” after a natural disaster still must pay exempt employees and some employers rally to provide employees with interest-free loans, paid time off, and more—even though the financial pressure on the business is immense. One major national franchise was struggling with these payments for several locations in a complete shutdown following a severe hurricane.

The total eligible employee retention tax credit for paying employees during the shutdown was only $7,000 per store. Maximus analyzed sales data following the reopening of all affected stores and discovered a 40% decline in sales during the first week back. Meaning? This first week could be considered for additional inoperable days to offset the maximum amount and earn a higher employee retention tax credit.

In the end, these additional inoperable days helped raise the increase in tax credit savings by an astonishing 871% per store. Using these same kinds of calculations, Maximus recovered the same amount for each of the client’s impacted locations through its tax credit services.