HOw do I claim the Recovery startup business

Hi there, daberry3.

Welcome to the QuickBooks Community. I'll be sharing details on how to claim credits for the Recovery startup business and how it works in QuickBooks.

With the passing of the Infrastructure Investment and Jobs Act in November 2021, the Employee Retention Credit (ERC) retroactively expired September 30, 2021, for all businesses except Recovery Startup Businesses. This means the ERC can’t be used on paychecks dated on or after October 1, 2021. Then, credits can’t be taken on any tax payments on or after October 1.

When you’re considered a Recovery Startup Business, you don’t have to pay back any credits you took on Federal tax payments for paychecks dated on or after October 1. Then, you’ll need to check the Recovery Startup box when creating your 941 forms. If you're using QuickBooks Online Payroll, Intuit Online Payroll, or QuickBooks Desktop Payroll Assisted, I suggest contacting QuickBooks Support to help you further on how to claim the credit.

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

Also, if you received an advance payment for the Employee Retention Credit for any wages anticipated being paid on or after October 1, 2021, and are not considered a recovery startup business, you must repay any credit received no later than January 31, 2022.

Please refer to this article to see different details on how QuickBooks populates each line in 941 and an equivalent report from your payroll software: How QuickBooks populates the 941.

I'll be here to lend a helping hand if you have other concerns about the Recovery startup business. I'm always here to help. Wishing you and your business continued success in QuickBooks.