April 23, 2021 Recovery Startup Business: How to take advantage of this new credit while not getting ripped off
Are you a Recovery Startup Business? You might be and not even know it.
The Employee Retention Credit (ERC) continues to evolve, getting richer and crazier by the day. That means more money for your company IF you fall under the definition of a Recovery Startup Business and don’t get scammed along the way.
Last month, Congress added the term Recovery Startup Business to eligible employers for the ERC.
So how does the ERC for these newly-formed startups work?
You receive a check from the IRS – up to $50K per quarter – for Q3 2021 and Q4 2021. That’s it! $100K just for asking.
The formula will probably be the same as the ERC: 70% of the first $10K in wages. So, if you have 7 employees getting paid a bit over minimum wage, you will get $100K from the government.
HOWEVER, STARTUPS BEWARE!
Popular firms are taking advantage of startups who are filing for this and other versions of the ERC and charging 20% of the credit as payment in the process. Do NOT get ripped off!
“I am seeing posts from Bay Area firms – the usual suspects – advertising their services to help startups get the ERC and the new $50K ERC for Recovery Startup Business,” Accountalent founder Joe Faris said in a recent LinkedIn post.
“They will charge you 20% of this credit. Do NOT pay any firm to get this credit for you. It is literally a 5-minute exercise and requires you checking off a box in your Gusto or other payroll system.”
Even if you are not a client of Accountalent, contact us and we will do this for FREE for you. No obligations – NONE!