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[Music] hey it's scott orton at cruise consulting and today we're talking about recovery startup businesses in the context of employee retention tax credits now that's a mouthful but it's actually really important for your startup especially if you your company was incorporated or founded after february 15 2020. so the logic here is the american rescue plan act of 2021 which just put in place a couple months ago basically said like hey there's all these companies that were started in you know postcovid like a very very tough time to start a company and so we want to help support these companies help them grow and if we can give them tax credits um to help support them but also to help them hire and make hiring new people cheaper because remember how bad unemployment was in 2020 then let's do it and so these companies will benefit from a new employee tax credit in q3 and q4 2021 now there's a couple tests to make sure that you actually apply it i mentioned the first one was the business started on february 15th or uh 2020 or after basically when kova hit the united states the second one is the company must have had an average of one million dollars or less in gross receipts every year now this you know if your company was started in 2020 and you're filing for this in 2021 you're basically just looking at the 20 20 year so just kind of simplify this for right now did your company do less than a million dollars in gross receipts revenue in 2020. and for most startups except for the just ginormous rocket ships they're all going to be able to answer yes they're going to qualify for that because it's very rare that a company can do a million dollars in revenue in its first like nine months of operation um so the good news here is your startup can save up basically seven thousand dollars per employee on a tax credit assuming they pay at least ten thousand dollars or more to that employee in these time periods in these quarters and now it's capped at fifty thousand dollars per quarter so fifty thousand dollars in q3 fifty thousand dollars in q4 2021 so basically you kind of need like seven or eight employees to mac and assuming you're paying you know startup wages which are usually pretty healthy especially for engineers you will max out at 50k per quarter so you're looking at a hundred thousand dollar tax credit um on payroll taxes which is awesome like everyone who's employing people is paying payroll taxes very similar to rd tax credit like that's super valuable for startups and so now we're talking about how to actually claim that through your payroll provider and the good news is it's doable for everybody no matter what payroll provider use um the bad news is some of the payroll providers are super...