{"id":63,"date":"2023-02-03T16:01:49","date_gmt":"2023-02-03T16:01:49","guid":{"rendered":"https:\/\/www.thinkastute.com\/blog\/?p=63"},"modified":"2023-11-27T14:54:28","modified_gmt":"2023-11-27T14:54:28","slug":"employee-retention-tax-credit-for-start-ups-and-other-challenging-circumstances","status":"publish","type":"post","link":"https:\/\/www.thinkastute.com\/blog\/employee-retention-tax-credit-for-start-ups-and-other-challenging-circumstances\/","title":{"rendered":"Employee Retention Tax Credit for Start-ups and Other Challenging Circumstances"},"content":{"rendered":"<p>As tough as the pandemic was for all, no one can deny that for those who launched a new business during the pandemic, working through the COVID-19 pandemic aftermath has been a herculean task.<\/p>\n<p>The American Rescue Plan acknowledges that starting a company at the onset or during the pandemic was extremely challenging and provides these companies an opportunity to hire and retain their employees. For the purpose of availing the <a href=\"https:\/\/www.thinkastute.com\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/\">Employee Retention Tax Credit<\/a> (ERTC), companies founded after February 15, 2020, are called \u201cRecovery Start-up Businesses.\u201d<\/p>\n<p>ERTC of $7,000 per employee can be claimed if a business pays at least $10,000 or more to the employee in the eligible time periods, provided they satisfy the following conditions:<\/p>\n<ul style=\"margin-left: -3%;\">\n<li>The organization began carrying on a trade or business after February 15, 2020<\/li>\n<li>The average annual gross receipts for the three-tax-year period ending with the tax year that precedes the calendar quarter for which the ERTC is determined do not exceed $1,000,000<\/li>\n<li>The business is not otherwise eligible for the ERTC due to suspended operations or a gross receipts decline<\/li>\n<\/ul>\n<p>As a Recovery Start-up Business, they are eligible to receive up to a maximum of $50,000 of ERTC per quarter in the third and fourth quarters of 2021.<\/p>\n<p>As a new business with unique challenges, it is imperative to maximize the benefit extended for ERTC, however, you need expert advice and an in-depth analysis of your situation to do this correctly.<\/p>\n<h3 style=\"color: #1aa1a1;\">ERTC for far-reaching adversities inflicted by the pandemic<\/h3>\n<p>Apart from start-ups, there could be additional unique situations that may raise questions on ERTC eligibility.<\/p>\n<p>One such circumstance could include businesses that experience far-reaching impacts of COVID-19, despite no major decline in revenue.<\/p>\n<p>Simply put, circumstances might be present in which a business\u2019 revenue has not declined as outlined within the provisions of the CARES Act, but other aspects of the business have been deeply impacted, such as:<\/p>\n<ul style=\"margin-left: -3%;\">\n<li>Disruptions in the Supply chain due to COVID-19 restrictions<\/li>\n<li>Time spent cleaning and sanitizing or the need to wear PPE<\/li>\n<li>Shifting hours of operation to increase facility sanitation<\/li>\n<li>Delayed or canceled projects due to COVID-related disruptions<\/li>\n<li>Limitations on the number of people allowed in a room or building<\/li>\n<li>Inability to attend normal networking events<\/li>\n<li>Disruptions to your sales force\u2019s ability to function normally<\/li>\n<li>Reduction of the services or goods offered to customers<\/li>\n<li>Reduction in hours of operation<\/li>\n<\/ul>\n<p>These and similar factors have been detrimental to businesses during and after the pandemic and play a major role in determining your business\u2019s eligibility for the ERTC.<\/p>\n<p>With the multitude of possibilities and the finer points that make your business eligible, claiming this credit is complex and confusing.<\/p>\n<p>To avoid errors in your ERTC application that could prevent you from receiving this tax credit, it is best to consult with an expert to help you through the process.<\/p>\n<p>Time is limited to avail the ERTC. <a href=\"https:\/\/www.thinkastute.com\/contact\/\">Reach out to Astute today<\/a> to determine your eligibility and apply correctly. Thank you for retaining your employees through the pandemic.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As tough as the pandemic was for all, no one can deny that for those who launched a new business during the pandemic, working through the COVID-19 pandemic aftermath has&hellip;<\/p>\n","protected":false},"author":1,"featured_media":65,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,11,15],"tags":[31,30],"class_list":["post-63","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","category-budgeting-forecasting","category-news","category-startups","tag-retention","tag-start-ups"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employee Retention Tax Credit for Start-ups and Other Challenging Circumstances - ThinkAstute Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thinkastute.com\/blog\/employee-retention-tax-credit-for-start-ups-and-other-challenging-circumstances\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Employee Retention Tax Credit for Start-ups and Other Challenging Circumstances - ThinkAstute Blog\" \/>\n<meta property=\"og:description\" content=\"As tough as the pandemic was for all, no one can deny that for those who launched a new business during the pandemic, working through the COVID-19 pandemic aftermath has&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.thinkastute.com\/blog\/employee-retention-tax-credit-for-start-ups-and-other-challenging-circumstances\/\" \/>\n<meta property=\"og:site_name\" content=\"ThinkAstute Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-03T16:01:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-27T14:54:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2023\/11\/ee.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"777\" \/>\n\t<meta property=\"og:image:height\" content=\"583\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ashwini Vasudeva\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ashwini Vasudeva\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.thinkastute.com\/blog\/employee-retention-tax-credit-for-start-ups-and-other-challenging-circumstances\/\",\"url\":\"https:\/\/www.thinkastute.com\/blog\/employee-retention-tax-credit-for-start-ups-and-other-challenging-circumstances\/\",\"name\":\"Employee Retention Tax Credit for Start-ups and Other Challenging Circumstances - 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