There are still COVID-19 tax benefits available. One of them is the ERC Startup Recovery Tax Credit. Did you start your business (or non-profit)
There are still COVID-19 tax benefits available. One of them is the ERC Startup Recovery Tax Credit.
Did you start your business (or non-profit) after Feb 15, 2020, and had W-2 employees in the 3rd or 4th quarter of 2021?
If so, then your business might qualify for up to $100,000 in tax credits under the Recovery Startup Business, as part of the Employee Retention Credit. Here’s what you need to know.
Do I Qualify for the ERC Startup Recovery Tax Credit?
To qualify for the Recovery Startup Business Credit, you must have had:
- Started your business on or after February the 15th of 2020
- One or more W2 employees. This excludes the owner and any of your family members as the majority owner of your business.
- W-2 Employees in the 3rd or 4th quarter of 2021 and started your business after February 15, 2020.
- Annual gross receipts or annual gross revenue, exceeding $1 million for individual 2020 and 2021 taxes.
Here is an example of a business that qualifies.
Let’s say you launched a food delivery business on April 1st, 2020 with three W2 employees. You earned $500,000 for the 2020 and 2021 tax years. In this case, you are considered a recovery startup business, and you would be the perfect candidate for the employee retention tax credit.
How Can I Use This Credit?
Fortunately, these are unrestricted funds. Therefore you can use it for things like:
- Hiring or retaining staff including giving them bonuses
- Operational costs
- Getting new technology
- Expanding the space for your brick and mortar
How Can I Take Advantage of the ERC Startup Recovery Tax Credit?
If you want to find out if you’re eligible and apply for the ERC Start Up Recovery Tax credit or the regular employee retention tax credit, let us help you!
FYI, businesses that are eligible for the regular employee retention tax credit, have until April 15th of 2024 to take advantage of this opportunity. You can qualify for up to $26,000 per employee.
You can visit the ERC Specialists or send an email to email@example.com. We have helped so many business owners get the credits they qualify for and deserve. Since this is a complicated process for most people, we take the hassle out of every step of the process.
You may also be thinking about using your accountant for this credit. However, the ERC credit is taken on your payroll returns and not through your business income tax returns. Therefore most accountants don’t process this credit unless they process your payroll in-house.
Contact us today so you don’t miss out on either of these tax credits.
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