### Question
How is the term eligible employer defined?


### Answer
The term **eligible employer** is defined in *26 U.S.C. § 3134* as the following:

> any employer—


(i) which was carrying on a trade or business during the calendar quarter for which the credit is determined under subsection (a), and


(ii) with respect to any calendar quarter, for which—


(I) the operation of the trade or business described in clause (i) is fully or partially suspended during the calendar quarter due to orders from an appropriate governmental authority limiting commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to the coronavirus disease 2019 (COVID–19),


(II) the gross receipts (within the meaning of section 448(c)) of such employer for such calendar quarter are less than 80 percent of the gross receipts of such employer for the same calendar quarter in calendar year 2019, or


(III) the employer is a recovery startup business (as defined in paragraph (5))

#### Citation:
  - *26 U.S.C. § 3134*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 21-FEDERAL INSURANCE CONTRIBUTIONS ACT > Subchapter D-Credits**

