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Texasdave
Level 1

ARPA ERTC for Recovery Startup Business

Will the Recovery Startup Business exception need to be noted or documented anywhere to ensure that only $50,000 per quarter is credited and not the entire 70% of $10,000 in qualified wages per employee?

Also, will owners W-2 wages allowed to be included?

1 Comment
KlentB
QuickBooks Team

ARPA ERTC for Recovery Startup Business

Hi there, Texasdave.

 

Let me share some additional information about the American Rescue Plan Act.

 

If your business began operating after February 15, 2020, and has an average annual gross receipt amount up to $1,000,000, you are eligible for a $50,000 credit per calendar quarter. Additionally, you're not required to meet the gross receipts test nor have been subject to a government shutdown in order to claim the credit. You may read this article to learn how to track the Employee Retention Credit in your payroll: How to set up ERTC.

 

With regards to the documentation of Recovery Startup Business exception and owner's wages eligibility, I'd recommend consulting your accountant. This is to ensure that you'll be able to properly claim the refundable ERC against applicable employment taxes.

 

I've also included some articles that help you manage your Employee Retention Credit in QuickBooks:

 

Don't hesitate to leave a comment below if you have any other concerns or additional questions about this topic. I'll be around to help.

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