May 7, 2021

You’re reading Gusto’s COVID-19 newsletter for small businesses. If you’d like these weekly updates in your inbox, you can subscribe here. New to Gusto? Try a free demo today.

Who’s hiring?

We’ve established that the recovery is underway, but it’s not equal across industries—or age groups. This becomes clear when you look at Q1 hiring trends for 2021, like Gusto did in a recent study. Findings show that the Technology and Accounting sectors are experiencing outsized headcount growth, while Tourism and Accommodations continue to struggle. And what’s more, new graduates were particularly impacted by headcount changes during the pandemic:

From March 2020 to now, workers under 25 experienced furlough rates 73% higher than those aged 25 and older and they’ve been terminated at rates 79% higher.

Why does that matter? Gusto economist Luke Pardue, who authored the report, warns it could turn into a lasting problem:

Keeping on eye on these new graduates in the labor market is particularly important because the impact of this recession on young workers can be felt for much of their careers. Economic research has found that young adults graduating in a recession earn less for 10-15 years afterwards, often because they settle for available jobs that are lower-paying…

Bonus: If you’re among the 42% of business owners who say they’re having trouble with hiring right now, these new grads could be the candidate pool you’ve been searching for.

Read Gusto’s full report here.

SMB Tax Credit Series, Part 6: Earned Income Tax Credit

In the run up to Tax Day on May 17, we’re highlighting some of the most helpful COVID-19 tax credits for small businesses each week.

The Earned Income Tax Credit (EITC) is a refundable tax credit for low- to moderate-income workers. Eligibility is determined by four factors: your adjusted gross income (AGI), investment income, filing status, and number of qualifying children. If you meet the requirements, it reduces the amount of tax you owe to the IRS, dollar-for-dollar. If the amount you owe is less than the amount of the credit, you will receive a refund.

How much is the credit for? For the 2020 tax year, you can claim:

  • $6,660 with three or more qualifying children
  • $5,920 with two qualifying children
  • $3,584 with one qualifying child
  • $538 with no qualifying children

How long do you have to claim it? Claim this credit when you file your 2020 tax return, on or before May 17, 2021.

Read our full guide to claiming the Earned Income Tax Credit. Tune back in next week for our final tax credit spotlight, and see a full list of COVID-19 tax credits here.

Relief spotlight

Paycheck Protection Program

Unfortunately, Paycheck Protection Program (PPP) funds have expired for most borrowers, but there is still roughly $8 billion in funding available through CDFI lenders. Find out if you’re eligible and how to apply on our blog.

35% Off IFundWomen Annual Coaching Plan

In honor of Mother’s Day this weekend, you can get access to year-round support to help your business go big and level up. Sign up for IFundWomen’s Annual Coaching Plan and get:

  • Everything in the Workshop Access Plan
  • Two private coaching sessions per month
  • Invitation to the monthly founder support circle with the IFW Founders
  • Consistent email support with the coaches

Use code MOTHERSDAY35 at checkout to save 35%. Learn more here.


MAY 11: Personal Branding 101

This IFundWomen presentation is for you if you’ve ever asked yourself these two questions: How do people perceive me? And how do I tell my story, what do I share, to make sure I’m positioning myself properly? Get expert answers from Sahar Paz, founder and CEO of Own Your Voice Strategy Firm, including:

  • How to create a personal brand
  • How to get over Imposter Syndrome using emotional intelligence
  • How to build and promote your personal brand
  • How to position and create value; becoming clear on the content you share
  • How to create social impact

RSVP here.

MAY 11: Navigating Your Cash Flow — Advancing Black Entrepreneurs

Join our partners at USBC for this 90-minute guided digital session, where you’ll learn how to: 

  • Categorize and identify gaps in cash inflow and outflow
  • Increase your cash in with tips to collect revenue, get paid faster, and identify higher income streams
  • Decrease cash out with ways to evaluate your business needs, improve efficiency, and optimize spending

Register here.

Find the latest relief options in our Small Business Relief Finder.

Want more small business news and resources? Check out past editions in our archive.

Mohini Kundu Mohini Kundu is a news editor on the Gusto content team. She studied journalism at Northwestern University and started her career at The Huffington Post before embracing the #startuplife.
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