What is a recovery startup business?
1.0k views |
Last modified 10/12/2021 9:12:53 AM EST
Applicable To
Form 941
Form 1099 / W-2
Form 2290
According to the American Rescue Plan Act of 2021, a new category has been added to Form 941 for the 3rd and 4th quarters of 2021, “Recovery Startup Business.”
A recovery startup business is an employer that:
- Began its business on or after Feb 15, 2020, and
- Had average annual gross receipts of $1 million or less.
Recovery startup businesses may qualify for a credit of up to $50,000 per quarter. You must check Box 18b when you file Form 941 to let the IRS know you are a Recovery Startup Business.