Save Up To $26K Per Employee With ERC For Startups
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You can now complete your employee retention tax credit claim in half the time without sacrificing the quality of the analysis and the reporting that supports it.
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Tax Credit FAQs
1. Your trade or business was fully or partially suspended or had to reduce business hours due to a government order. The credit applies for the portion of the quarter the business is suspended, not the entire quarter.
2. Your trade or business had a significant decline in gross receipts.
2020: if gross receipts in a calendar quarter are below 50% of gross receipts when compared to the same calendar quarter in 2019, your business will qualify.
2021: if gross receipts in a calendar quarter are below 20% of gross receipts when compared to the same calendar quarter in 2019, your business will qualify.
3. Recovery Startup Business: if your business started after February 15th, 2020, had annual gross receipts that are less than $1 million
The wages of any majority owner (greater than 50% ownership) do not qualify for the ERTC. Additionally, any related individual’s wages with the following relationships do not qualify for the ERTC:
- A child or a descendant of a child.
- A brother, sister, stepbrother, or stepsister.
- The father or mother, or an ancestor of either.
- A stepfather or stepmother.
- A niece or nephew.
- An aunt or uncle.
- A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or
- An individual (other than a spouse, determined without regard to section 7703 ,
of the taxpayer) who, for the taxable year of the taxpayer, has the same
principal place of abode as the taxpayer and is a member of the taxpayer’s
Per the American Rescue Plan Act, a business that opened its doors during the pandemic can receive the credit. Your startup may be eligible if you meet the following criteria.
- You started your business on or after February 15, 2020.
- Your annual gross receipts don’t exceed $1 million for the individual 2020 and 2021 tax years.
- You have one or more W2 employees, not including owner-operators or family members.
In addition, if you purchased an existing business that was in operation on or before February 15, 2020, you may or may not be considered a recovery startup business. It all depends on your unique circumstances.