ERTC Tax Credit – How Your Startup Business Qualifies
Hey there! In this video by ERTC Tax Credits, Jay Mike from Small Business Recovery is here to show you how your startup business can qualify for the ERTC tax credit refund. The ERTC offers a fantastic opportunity for businesses formed and started during the COVID-19 pandemic to get money from the US government without having to pay it back. So, let’s dive into it!
If you’re a startup business, you have a special qualification option known as the recovery startup business under the ERTC rebate program. To qualify as a recovery startup business, you must have more than one employee and have started your operations on or after February 15, 2020. Additionally, your gross receipts for both 2020 and 2021 should be under one million dollars each year. If you meet these criteria, you may be eligible for a refund of up to $100,000, with a maximum of $50,000 per quarter for quarter three and quarter four of 2021. To determine how you qualify, simply click on the link below at Smallbusinessrecovery.org and complete a quick questionnaire. It’s that easy to find out how much you can receive. Thanks for watching, and stay tuned for more info!
ERTC Tax Credit
How To Qualify For ERTC Tax Credit
What is ERTC Tax Credit?
The Employee Retention Tax Credit (ERTC) is a program offered by the US Government that provides refunds to businesses without the requirement of repayment. It is designed to offer financial support to businesses that have been affected by the COVID-19 pandemic.
Benefits of ERTC Tax Credit
The ERTC Tax Credit has several benefits for startup businesses. It provides an opportunity to receive a refund from the government, which can help ease financial burdens and support business operations. By taking advantage of this credit, startup businesses can access additional financial resources that can be used for various purposes such as payroll, operational expenses, and growth initiatives.
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Unlocking ERTC Tax Credit For Startup Businesses
Qualifications for Startup Businesses
To qualify for the ERTC Tax Credit as a startup business, certain criteria must be met.
Definition of a Recovery Startup Business
According to the ERTC guidelines, a recovery startup business is defined as a business that meets the following requirements:
- The business must have more than one employee.
- The business must have started operations on or after February 15, 2020. It is important to note that the business should not have been organized or incorporated before this date.
Requirements for a Recovery Startup Business
In addition to the definition mentioned above, recovery startup businesses must also meet the following requirements:
- The gross receipts of the business should be under one million dollars for both 2020 and 2021.
- If the owner of the startup business owns multiple companies or has common ownership, the requirements may change. These businesses are typically aggregated or lumped together for eligibility assessment.
- The startup business must not be eligible for the Employee Retention Credit (ERC) under other requirements. For example, if the business has experienced a significant decline in gross receipts or has been subjected to governmental orders and restrictions, it may be eligible for ERC instead.
- The startup business must have paid employees during quarter three and quarter four of 2021. This means that even if a business does not qualify based on a shutdown or revenue decline, it can still be considered a recovery startup business and be eligible for the ERTC Tax Credit.
Receiving the ERTC Tax Credit
Once a startup business qualifies for the ERTC Tax Credit, there are certain aspects to consider regarding the amount and breakdown of the credit.
Maximum Amount
The maximum amount that a startup business can receive through the ERTC Tax Credit is one hundred thousand dollars. This provides significant financial support to ease the challenges faced by startup businesses during the recovery period.
Breakdown of the Credit
The credit is distributed based on a quarterly basis. A startup business can receive up to fifty thousand dollars per quarter for both quarter three and quarter four of 2021. However, it is important to note that the credit per employee per quarter remains at the usual seven thousand dollars for this reduced time period. Regardless of the number of employees, the cap is set at fifty thousand dollars per quarter.
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How to Determine Eligibility
To determine eligibility for the ERTC Tax Credit, startup businesses can visit the website smallbusinessrecovery.org. This website provides a link to a simple questionnaire that can be filled out to assess eligibility. By completing the questionnaire, businesses can quickly find out how much they qualify for and take the necessary steps to apply for the ERTC Tax Credit.
Conclusion
The ERTC Tax Credit offers valuable support to startup businesses that have been impacted by the COVID-19 pandemic. By meeting the qualifications as a recovery startup business, businesses can access a significant refund from the US Government without the need for repayment. It is important for startup businesses to understand the eligibility criteria and take advantage of the available resources to navigate through these challenging times.