The Coronavirus Aid, Relief, and Economic Security Act (CARES) act was signed into law in March 2020 to provide businesses with financial assistance through the Employee Retention Credit (ERC). The ERC was expanded through the American Rescue Plan Act (ARPA) in March of 2021 to include previously ineligible “Recovery Startup Businesses”. In this blog post, we will discuss who qualifies as a recovery startup business and how to claim the ERC as a recovery startup business.
Who Qualifies as a Startup Recovery Business?
Businesses who answer “Yes” to all of the following questions may qualify as a startup recovery business:
- Did your business start operations on or after February 15, 2020?
- Does your business maintain average annual gross receipts under $1,000,000?
- Does your business employ one or more employees?
- Owners must not exceed 50% of total employee count
What if I don’t qualify as a Startup Recovery Business?
If you do not qualify as a Startup Recovery business you may still qualify for the ERC. Visit our Employee Retention Tax Credit Resource hub to access our ERC webinars, eligibility flowcharts, and get in touch with a tax advisor.
How can I claim the ERC?
Claiming the ERC can be very complex. If you believe you may qualify, get in touch with a tax advisor to discuss the next steps. We have a team of dedicated experts who can support your business in claiming the ERC. To learn more or contact us, visit our Employee Retention Tax Credit Resource hub.
