Your company could qualify if it experienced:

  • 50% reduction in revenue in Quarters 2-4 of 2020 and a full or partial government order or shutdown in 2020,
  • Greater than 20% reduction in gross receipts in the first 2 Quarters of 2021, compared to the same quarter in 2019 (2020 if you did not exist in 2019),
  • Quarters 3 & 4 have the same qualification as the first 2 Quarters in 2021 but with some small tweaks.

If your business qualifies for ERTC, we suggest you act now. The infrastructure bill awaiting passage in the House will impact ERTC. If enacted, it will end ERTC for all except Recovery Startup Businesses after 3Q 2021.

Qualifications of a Recovery Startup Business include:

  • Began carrying on trade or business after Feb 15, 2020,
  • Had 3-year average annual gross receipts greater than $1 million,
  • is not otherwise eligible for ERTC via governmental orders or gross receipts drop.

Recovery Startup Businesses are entitled to a maximum ERTC of $50,000 per quarter ($10,000 limit per employee still applies).

For next steps on moving forward with ERTC for your business, please contact your accountant at 614-891-5423.