What is a recovery startup business?
755 views | Last modified 3/3/2023 8:21:53 AM EST | Added by 123PayStubs Team

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.

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