RECOVERY STARTUP BUSINESS
Over the past year many businesses have struggled with the effects of the COVID-19 pandemic. There are many resources that help with recovery from the pandemic. The Recovery Startup Business will aid businesses that were seriously affected. With the help of the ERC, employers are now eligible to apply for the Recovery Startup Business.
To be eligible an employer must have the following:
Holding a trade or business after February 15, 2020
Not have an annual gross income of receipts for the 3 year exceeding $1 million.
Does not otherwise qualify due to a suspension in operation or a large loss in gross recipients.
70% of wages paid, up to 10K per employee is included. These businesses are allowed to claim the ERC for Q3 and Q4 for 2021. These businesses are subject to a $50,000 cap per quarter. It is important to note that startup businesses may also qualify for the ERC. Those who may qualify for the non-startup ERC could be allowed a larger credit.
With this credit it can help those who have suffered during the COVID-19 Pandemic. Through the RSB these businesses can receive up to $50,000. Allowing businesses to re-establish what has been lost, and create new growth in their company.