Did you start a business during the Pandemic?
FACT: You May Be Eligible For Covid Credits Up To $100,000
Let's Get You Qualified
Have You Heard of the Recovery Start Up Program?
We didn’t think so, but it’s true. Companies founded after February 15th, 2020, are likely eligible for a special form of the employee retention tax credits set aside for “Recovery Startup Businesses” just like yours.
Starting a company during COVID was brave and The American Rescue Plan took that into consideration. Designed to help companies like yours with cash flow, the government will give “recovery startups” tax credits, and most often in the form of a check.
Are You a Qualified Recovery Startup?
To be eligible as a recovery startup, you must be able to answer yes to the following:
Was the business started on or after February 15th, 2020?
Did you have W2 employees?
Did the company have an average of $1 million or less in gross receipts?
Basically, did your company do less than a million dollars in gross receipts/revenue in 2020? For most startups during this time, the answer is yes. It’s very rare that a company sees a million dollars in revenue in its first nine or ten months of operation.
Our Services
Employee Retention Credit
Consulting Services
Income Tax Services
How Much Can a Recovery Startup Expect?
Up to $7,000 per employee on a tax credit, capped at $50,000 per quarter. So, $50,000 in Q3, $50,000 in Q4, 2021.
Example: A company with seven or eight employees, paying typical startup wages, you would max out at $50K per quarter in credits. Your company would be $100,000 tax credit on payroll taxes over the two quarters.
How to Claim ERCS if You Are a Recently Founded Startup
That’s where Murphy Tax Services comes in. We can work directly with you and your payroll provider to make sure you’re eligible and we'll coordinate the filing process. Here’s the best part, we only get paid if you hire us and if we get you cash. We'll do all the paperwork so that it'll be less of a hassle on your end.
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What is a Recovery Startup Business ERTC?To meet the definition of a “Recovery Startup Businesses’’ in the context of employee retention tax credits, a company must have 1) been founded after Feb 15, 2020; and 2) have less than $1 million in revenue.
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Are New Companies Eligible for Employee Retention Tax Credits?Yes. In 2021, Congress passed new legislation that let “recovery startups” the ones founded after Feb 15, 2020, claim the Employee Retention Credit (ERC). The company must also have less than $1 million in revenue.
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What's the Maximum Amount for a Recovery Startup?Congress & the IRS have capped recovery startups at $50,000 per quarter. With two quarters to apply these credits, that’s $50,000 in Q3, $50,000 in Q4, 2021. So, $100,000 tax credit on payroll taxes over the two quarters.
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How Does a Recovery Startup Apply for an ERC?The best way to let the IRS and Federal Government know that you are claiming the ERC is to work with your payroll provider and Qualified Expert like the team at Murphy Tax Services.
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The IRS is Paying Interest on ERC RefundsEligible startups that have been awarded employee retention credit (ERC) refunds from the IRS but haven’t received them will get interest on these refunds to help compensate your company for the time you waited for your payment. Currently the IRS is backed up due to staffing challenges and pandemic stimulus programs, so some refunds have been delayed. Recognizing this, the IRS has been providing interest payments for refunds that are backlogged.
How We Work to Get Your ERC Funds
Step 01
We Determine if Your Company Qualifies
We will help you determine your eligibility as a Recovery Startup.
Step 02
We Determine Eligible Wages
We collect payroll information to calculate how much you are eligible to receive.
We separate wages to be used for 2nd round PPP forgiveness, if applicable.
Step 03
We Calculate and Report the Credits
We determine your company’s credits, prepare the amended 941 return and coordinate filing process with your payroll provider.
Step 04
You Celebrate
When faced with the tough times during the pandemic, you and your company survived. Open that envelope, pull out that check, and organize a party!